Tesla Posts Massive Loss In 4th Quarter And The Model 3 Is To Blame

Why is Tesla losing money? I thought there cars were out of this world...

Many months ago Bob Lutz predicted Tesla would be bankrupt by this summer. He may be right.

I do not agree although I have always had serious doubt about Tesla long term. Tesla still has two things going for it RIGHT NOW - that will not last long
1 - They are still the company that has the vehicles in some type of production - only the Bolt - really compares and it looks poor in comparison
2 - They still have a backlog of orders for which there is NO Other manufacturer who has product similar.


EVERY day that passes however - is a missed opportunity - and when real competition appears - I believe some will this fall - unless they have all the problems solved - they are up the creek. So - I believe that NEXT summer will be the one to look at - not this one.

The era of free taxpayer money like it was during the corrupt hussein obama administration is over. Big tax credits, rebates and government supports are history. The U.S. is in dangerous debt and can not give money away anymore.
Tesla will either have to pay its own way or go bankrupt.

It will get bought out.

A smart move would be for GM to buy it for the name and ditch the crappy vehicles.

Relegate Buick to China and install Tesla below Cadillac.

@skytop: Keep your eyes open for the current administration sending a river of money to the coal industry. That's already being discussed.

@TheSteve I know your Alt-Left mind HATES prosperity, but low-cost energy turbocharges the economy. The pouring of money into so-called "green" energies that are totally incapable of (1) delivering the energy being demanded, (2) doing so reliably, and (3) being as cost effective as cheaper alternatives is asinine. The counter that pouring the money in will make that happen is just your inner unicorn talking.

Tesla declares a loss for the quarter. This is not news. It has been standard operating practice for Tesla since Day-1. You know they'll have to tap capital markets again by mid-year to get the cash they need to keep operating. That too is not news.

While I appreciate your comments (MDarringer) I could not disagree more. It may yet get bought but GM would be a disaster. GM has exceptional engineering but a corporate culture of not being open to new ideas and new ways of thinking that does not come from within. Its a closed culture. The Tesla mentality and culture would clash with GM's, dooming the integration. I spent 33 years negotiating corporate mergers and the fit with GM simply would not work. Hats off to Geely in the manner they integrated and supported Volvo that allowed Volvo to be Volvo. Compare Geely's success with GM's utter disaster with SAAB. A real shame. To the very end GM put conditions on SAAB's spinoff that were so restrictive as to kill the brand then give someone else a chance. The insular and arrogant culture at GM is so entrenched and gets in its own way so often.

And I do not agree with you.(Pug..)

GM has produced some very innovative EVS over the years - actually produced the VOLT long before PHEVS from others were available- produce the the EV-1 when no one was considering electric cars - and had lots of things that were considered the leaders in their classification. GM automatic transmissions set the standards for quick shifting today - and were available on many Rolls Royce - Mercedes - and BMW vehicles in the past - as were GM Air conditioner compressors too. Culture you complain about in GM went when the new corporation was formed - however - GM was not as bad as you say likely VW was worse - and if YOU actually look it up - GM introduced many things to cars that are now common.

However - I see no reason for GM to actually buy TESLA anymore - remembering that Tesla placed all of his engineering into the public domain - and that GM already has the BOLT platform and will produce many more electric models than tesla will in the Next three years - I do not see ANYTHING that GM needs unless they get tesla for FREE.

What exactly is so new and innovative about Tesla? Even the con game is tried and true.

TomM... Did I not say GM has engineering excellence, maybe the best in the world. I think we agree on that. Its the culture of not invented here built up over the years that would say to its new Tesla colleagues should a merger occur "We know how to do this better than you ever will, we are GM, so do what we say or leave." Not the best approach for integrating a leading edge dynamic damn the cost full speed ahead culture at Tesla. I'm not saying Tesla doesn't need sound business and financial controls to succeed. I just think GM's typical heavy handed approach toward outsiders will not work. Oh well, doesn't matter as this union will never happen. More likely the Chinese.

In other news, Twitter just posted its first profit in 12 years of operation. So as long as investors believe in the company and continue to buy the stock and new debt, it would seem a company can go on almost without end...

Sadly, if Tesla were to go bankrupt there is really nothing left to buy. The vehicles are assembled from (nicely designed) componentry; there is no real distribution network (save for a few leased storefronts and superchargers in the corner of truck stop parking lots, there are probably lots of angry customers, etc. etc).

Ironically, the Tesla sports coupe launched into orbit (depending on how long it orbits for) might be the only Tesla vehicle left that is in motion 10 years from now.

The bankruptcy will come and the pieces will be sold off and that's it.

Without tax subsidies, Tesla (and the other electrics at this point in time) are non-economic and are basically all sold at a loss. That is not a business.

The German government will prop up VW's electric business for a while but the folly of that activity will eventually become apparent and that too will shut down.

There is something to buy...Battery technology that is ahead of anyone else, and the lowest cost/kwh or any manufacturer. Tesla is basically a generation ahead of anyone else in battery tech. Yes they use panasonic cells, but the techniques of combining the individual cells into a large battery, and proper thermal management of the battery unit to maintain safety/longevity is all tesla technology. With that being said, no one will pay the "tech company valuation" of $52 billion for Tesla.

The above photo of Elon Musk with his 'I know NOTHING! is the exact same stupid corrupt look that hussein obama used when he was asked where $1 Trillion dollars of TARP money vanished back in 2009.