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Maybe some powers that be have speculated in the stock, and this is a way to keep the bubble afloat.
Often when I see a bicyclist, it is a smarmy middle aged lawyer type in ridiculous gear, probably out on paid time, heading back to his toy car that everyone else subsidized.
Still more of a recreational activity rather than a commuting option for the masses in my area anyway, which has cold rain for half the year. When it's 40F and pouring in December and the destination is 10 miles away, it just doesn't work.
A topic for a different thread, I think. This one is to admire the stock bubble
It seems people buy "lifestyles", they don't crunch the numbers to see what actually makes sense.
Tesla isn't a game changer because it's still the same game they're playing. You can wear any jersey you want but it's still 4 downs and 100 yards.
I took a number of ~300 mile drives last week in an efficient car that didn't require subsidies. When the Tesla gets there, maybe the game will change.
On that note, I bet the Tesla will rack up casualty numbers far lower than the vehicle fleet in general - as cars in its price range tend to do.
Also contributing to lower casualties, people who can afford Teslas tend to fly more, rather than drive. I'm sure these factors won't be included in marketing materials touting Tesla's safety.
"Tesla Motors is aiming to sell around 10,000 cars a year in Germany by 2015 as it builds out its networks of charging stations, Elon Musk told a German paper."
re: Germany, I'd wager the gvt there will issue similar incentives (there are already carbon and congestion charges that EVs can dodge), and Germans do like tech. With high population densities and lots of good local infrastructure, developed Europe might be a great market for expansion.
I'd argue that the S has been more of a product success than a commercial one so far, because without the subsidies and other legislated advantages it wouldn't sell in nearly the numbers that it does.
Due to the product and impressive sales in the luxury class, considering that Tesla is a fairly new company, Musk enjoys exalted status among many. He's been compared with Steve Jobs and Jeff Bezos. Some say that, in addition to being a tech genius, Musk is an automotive genius (more on that below). I say, not so fast. It's too early to put him in that category because he has yet to prove that the success of the Model S is scalable at lower price points, with fewer incentives.
Henry Ford, Karl Benz, Andre Citroen and Soichiro Honda didn't have the government backing and support that electric cars enjoy, so it's premature to call Musk an automotive genius. I'll put him in the same category as Ford, Benz, Citroen and Honda if the Models X and mass market E are commercial successes. If they achieve this based on product excellence, and are competitive on price, it'll prove that Tesla's recipe is scalable. If Tesla is in business as a major car producer in 10 years, Musk will have succeeded where others, such as Henry Kaiser, John DeLorean and Preston Tucker, failed.
One area where Musk exceeds the earlier automotive greats is his marketing and public relations abilities. If only Henrik Fisker had had those talents Tesla might have another upstart rival. Come to think of it, DeLorean was also a skillful promoter. Maybe more flash than substance there.
As far as justification, per fueleconomy.gov (using 2012 modesl in their most fuel-efficient version)
http://www.fueleconomy.gov/feg/Find.do?action=sbs&id=31788&id=31374&id=31765&id=- - - 31767
an Accord, Camry, or Malibu, on gas you'll average about 28mpg and 50mpg in a Prius, with the reliability of a Prius on par with an Accord & Camry and better than a Malibu. The battery of a Prius has a longevity in the few hundreds of thousands of miles. If you kept each car 5 years and drove 15,000 miles per year with gas averaging $3.50/gal, you'd save $4,125. Since it's such a reliable car, driving 10 years at 150,000 miles trouble-free is the norm and that would save over $8K in gas. The Prius being a hatchback has more cargo space at 21CuFt when compared to the 15CuFt standard on most mid-sized sedans. It is slightly narrower, so three wide bodies in the backseat of a Prius would be less comfortable than in most mid-sized sedans, but legroom & headroom in the Prius is about the same.
Then you have the Prius V, which has about the same cargo and passenger space of a small SUV (RAV4, CRV, Escape, etc., but will save you $4250 in gas over 5 years based on fueleconomy.gov comparison: http://www.fueleconomy.gov/feg/Find.do?action=sbs&id=32196&id=32128&id=31481&id=- - - 31836
Again, being highly reliable, there's no reason the Prius V won't go trouble-free for 10 years 150-200,000 miles, saving $8,500 in gas. As far the hybrid "price premium," similarly equipped small SUVs will cost in the upper $20K to lower $30K price range depending on options. With respect to the regular Prius, it will cost in the mid-$20sK to the upper $20sK again, depending on options, which is also comparable to similarly equipped mid sized sedans. Even if you end up paying a couple of thousand more for either the Prius V or regular Prius, the over $8,000 you save in gas (assuming the price of gas remains around $3.5/gal--if you think it will go up more than so will the savings) will more than compensate for the increased initial cost. The resale value of a Prius is better too than an Accord or Camry. I've seen 8 year old Accords and Camrys for sale with 150,000 miles for $5,000, but a Prius will run about $7000 with the same age/miles.
So if a person is looking for a highly reliable car to hold 4 adults comfortably with 21CuFt of cargo space behind the second row, I'd say a Prius would be easily justified. Similarly, the Prius V would be easily justified if looking for a something with a small SUV cargo area, as the Prius V has 34CuFt of cargo space behind the second row. The only "green" image you need to have is the image of wanting to save yourself green-backs in the long term of car ownership.
P.S. VW TDI diesels, while averaging MPG in between gassers and hybrids are an option, but to me the long-term quality and reliability of VW with respect to their electrical systems, transmissions and other components, as well as the higher cost of diesel fuel make diesels a non-option for me.
P.P.S. I've driven sports cars (eg Mazda RX-7) and while I agree that the Prius may not be the sportiest car out there, for 99% of local and highway driving where sporty driving doesn't even occur, I'd rather be in a Prius than in some sporty car that I can't even use.
P.P.P.S. Just found an interesting article from Motor Trend:
http://wot.motortrend.com/rental-review-2012-toyota-prius-a-good-camry-i-4-alter- - native-419187.html#axzz2j1HkEB2N
"As it is, the current-generation Toyota Prius makes a decent argument for itself as a midsize sedan alternative. Based on my short 350 miles behind the wheel of a 2012 Prius, it’s clear you do give up a lot in the form of acceleration, steering feel, and handling, but lots of people don’t care about handling as they crawl at 10 mph home in rush hour traffic."
PPPPS Here's the Oct 28 Motor Trend comparison:
http://www.motortrend.com/roadtests/alternative/1312_the_big_test_2013_2014_hybr- id_and_diesel_sedan_comparison/viewall.html
"The 5-year cost of ownership order is, best to worst: Prius, Civic Hybrid, Jetta TDI, Cruze Diesel, Jetta Hybrid."
Here's their bottom line:
"No driving enthusiast wants to admit the Prius is good in any way. But since it'll constantly have your back at the gas pump and is least likely to nickel-and-dime you over 5 years, it earns second place. The first-place Jetta TDI punches above its weight, delivering beyond its stated ability. It's easy to live with and always satisfying from behind the wheel. It does more with less, which ultimately is the definition of proper efficiency."
But again for me, long-term reliability and cost of ownership outweighs the better drive. And since Motor Trend is more for "drivers" cars, it's not surprising that they put the Prius as #2 behind the TDI, but back to the first article, "lots of people don’t care about handling as they crawl at 10 mph home in rush hour traffic." To me driving a sporty car at 2% of it's capability which occurs 99% of the time is no fun at all and not worth the "fun" of the other 1% of time you're zooming on a highway entrance/exit ramp!
In the Tesla owners' income bracket, "cost to own" simply isn't being factored---that's fine for a boutique automaker but not for a mass-market one.
But why does Tesla have to be a mass-market automobile? If Tesla follows this strategy it will become yet another failed venture. And here is why.
The average transaction price of car today is about $31K. If Tesla were to sell its vehicles at $31K every auto maker would join the fray (as they have done with hybrids) and Tesla would have to compete on price -- a strategy it cannot win, not to mention diminishing the brand's image and cachet.
Free advice to Tesla, target the high-end market in North America and Europe. Even Toyota (Lexus), Nissan (Infiniti) and Honda(Acura) have realized that their real profits come from the marque brands.
Consider this fact. Luxury brands make up 9% of automakers' sales, but 50% of their world-wide profits. I rest my case.
I can't believe Tesla is actually making any real money doing what it is doing. All I see is a high burn rate.
Oh, another fire
Maybe they just attract errant owners?
It's also ungainly looking inside and out, squishy handling, and the Prius C I have experienced firsthand is only really fit for city use. There's more to life than saving money on gas. If I wanted a hybrid, I would get one based on a normal car. 99% of my driving time isn't in the commuting slog, I need something with more feel and more design.
PS...You don't "need" something with "more feel and more design." You WANT something more... You sound like my kid when you say you "need" it. ;-)
BMW drivers are probably jerkier, on average
I need something more...I am skating on thin ice in terms of sanity already, it might not take much to push me over the edge
And with over a million Prii on the roads in the US, and with taxi drivers and Yoopers driving them, the eco-weenie sleeve wearing mantra is getting a bit thin (yeah, I see them all the time now here in the UP). They don't cost a fortune, they're reliable and they're good on gas. Perfect toasters that happen to be green, but the dollar green is pushing sales now.
The Tesla can't qualify for eco-weenie status either; the Leaf or Volt make better green sense just on their lower cost and "everyman" status. The one green thing about a Tesla is that you are limited on how much you can drive it. :-)
It's a modern day car for people who don't like cars or driving. Those existed in the past, too. Toasters aren't new. Nothing wrong with it, if one accepts it for what it is. I do, but it seems like some who have bought them or want them don't. Regarding the stereotypes, find the South Park "Pious" episode, or the video with the annoying woman whining to the dbag truck driver...stereotypes usually don't come out of thin air.
The Tesla is eco-weenie coupled with Apple-style showy tech and lots of bizarre financial policy. It probably doesn't come with a pre-installed "Coexist" or "Hillary in 16" bumper sticker, like a Seattle area Prius
Haven't you heard that people who stereotype are dysfunctional cognitives?
Seems like every story around here is about yet another issue with the long term Tesla in the fleet. The latest is the driver door opening automatically - and that's not the first time that problem has cropped up.
Blind absolute stereotypes are dangerous, but ignoring the links between smoke and fire is also dysfunctional and maybe deceptive.
The shop owner was telling me about a retired GM engineer who has a lake place around here. He got a Volt, "just because". The consensus was that it was perfect for tooling around on 30 mile trips but that's about it.
That's an unfair characterization of Tesla's financial reporting. Tesla provides financial information based on US GAAP as well as additional information not often found in GAAP-based financial reports. It is up to reader to choose which information makes for sense to him.
By policy, I mean the hard to defend subsidies and undeserved tax breaks, the goofy price-value justifications ($100/hr for fueling time, etc), and so on.
Of course, I am not involved in speculating in what might be the most bubblicious stock on the entire market, so I don't need to find a silver lining in the weirdness.
If I won a lottery, a Tesla wouldn't be in my initial fleet anyway
Just like a Prius C is OK so long as you never have to hit the highway.
Let's see, Tesla stock was around $165 today, so instead of fixing the van, I could have purchased ~2.5 shares of stock. But even Elon says it's overvalued. (CNN)
Would have been nice to have gotten some at the start of the year and watched it grow 400% though.
Seems to me if they got the $80K car down to $50K they'd be onto something.
In time as charging stations are more widespread, appeal will grow too. Theoretically, the potential is great. Just waiting for an imitator.
Cool link - there has to be a correction sometime.
What a RACKET!
Unlike their attitude towards Apple, the American public has (so far) sent a pretty clear message to some automakers:
"We don't particularly like diesel cars and we don't particularly like EVs".
So, as Tesla increases the number of models on offer and price points, it could find itself in demand by more than just those in these wealthy enclaves. After all, most luxury car companies find the most volume in their entry-level vehicles."
Drive by Numbers - Tesla Model S is the vehicle of choice in many of America's wealthiest zip codes (Here's the press release version).
What they aspire to is the 300 mile range and blistering performance. What they are not aspiring to is yet another Nissan Leaf.
Total Ferrari sales (ever) is ~130,000 per Wiki. Tesla is up to 10,000 sales as the first half of this year (can't find a "total to date" number - anyone?). First cars were produced in '08.
Part of springing for a Ferrari or other super highly wound performance exotic, is for the accompanying aural package that valves and cylinders in silly numbers, and no-dollar-spared intake and exhaust systems provide, that all react proportionately to the press of the loud pedal.
With a Tesla, while the push into the seat is going to feel good, the electric whine of the motor (which is probably intentionally kept quite subdued) will be more reminiscent of driving a forklift or golf cart..
Given that sales will grow over time, it seems likely Tesla is preparing to reach 100,000+ vehicles sold in the final year of the agreement — five times the 2013 total."
So, maybe 5 years to approach Ferrari's lifetime total. (Forbes)
Tesla has already sold more cars this year than the entire 21 year run of Checker Marathons. (yet another obscure Wiki link)
I'd say that at this stage the primary thing they share is exclusivity. And with the numbers you're posting, they're on their way to throwing that out the door too in due time.
More range, lower cost, that's the only way.
Daimler Seeks More Tesla Cooperation in Pursuit of BMW (Bloomberg)
Had no idea that they're going to use a Tesla drivetrain in the Mercedes B-Class.
We'll really know Tesla has made it when the stock goes to $38 and they announce a dealer network.
That was Tesla's goal but Wall St. wanted more.
Tesla Tanks As Vehicle Sales Come Short Of Analyst Expectations (businessinsider.com)
Still no game changer. You want a real game changer?
It was the Prius.
It was the Prius."
Yep, love it or hate, there are a million examples on the roads and it single handedly brought Toyota becoming the leader in hybrids that they are today.
Still, there is nothing sexy about anything in the Prius lineup.
The Tesla tho, either the "sexy youngin", Model S or the Lotus Exige looking one are reminiscent of the posters of Ferrari's and Lamborghini's that I once had on my wall as a kid growing up. They are stylish and svelte and IMO don't really look like anything on the market. Sure, bits and pieces of the Model S could remind one of a Maserati Quattroporte or maybe an Aston Rapide but in the big picture, it really has a look all it's own. And the Roadster, sure it looked like a Lotus Exige but how many non car enthusiasts in the world even know what that is?
That's the thing, I really believe it is the sex appeal and the blistering acceleration that are driving the Tesla name right now. It's a car that you almost expect every Eco-conscious Star in Hollywood to buy (Remember the EV-1 rage when GM called them all back to be crushed?) or the rich business guy who wants to offset the gas consumption of his half-million dollar 12mpg Ferrari...
IMO, it is what the Prius was in the beginning, or heck even the Ford Escape hybrid brought to those looking for something different, exclusive and special. Tesla just happened to wrap it in a sexy body and as I mentioned before, gave it incredible performance.
I think it is a real game changing alternative to the large Bimmers and Mercs, just like the Prius was a game changer to the typical compacts.