- First Name
- A. J.
- Dec 8, 2019
- Reaction score
- Tesla X LR+, Lexus SUV, Toyota SR5, Toyota Landcruiser
- EE (Retired)
You'd think that after having been shown to be so consistently wrong for so long those guys would be ashamed to show their faces but I guess some people have no shame.Recent blog posts from Seeking Alpha raised the knotty issue of Tesla's Capital Expense (CAPEX), burn rate in the face of Covid-19.
Because either they aren't or don't care.The Stupid Question is: Why can't Tesla see that it is self cannibalizing sales between model 3 and Y, and between the unnecessary X and Y?
Perhaps they understand the market and their position in it a little better than you do.'With model Y available, personally I would never buy a S, X, or the 3! With Cybertruck available, I would never buy an X!
I've never served as a CFO but common sense says that if things look dicey in the near term the last thing you want to do is change horses (in mid stream as the old saying goes). If it looks as if there may be a cash problem in building out the CT plant the smart thing to do would be to defer that.To survive Tesla now needs to rapidly differentiate its products to the Y and CT almost exclusively.
Where would the capital for the retooling come from if they lost their revenue stream. Common sense, PLEASE!Given that, there is no need for extensive CAPEX or long delays for a new CT plant,! Ergo: CT PRODUCTION NOW!