Bankrupt Musk is what I really wanted for Xmas
I knew Tesla was a scam when they made their money not by selling their cars but by selling ev credits.
It will be interesting. Musk has pissed off the libs, which are basically the people who buy his cars. They're getting their federal tax credits back, but there's a recession looming and GM is bringing a ton of new BEVs to market this year, for about 1/2 the price of a Tesla.
I am honestly surprised at the sudden drop in sales and all the incentives and quick delivery Tesla is pushing. I thought bazinga-brain elon lovers only represented a fraction of the Tesla buyer's market, but I was wrong. Seems like a majority of Tesla sales were driven by Elon hype and nothing else.
If you compare a Tesla to any other electric car, you're paying double or more for ancient technology and abysmal safety and reliability
Also as much as the pickup fad and the Obama era buyback to reduce used car supply both really suck, I imagine it's made the traditional car manufacturers a ton of money. Tesla, a company dependent on debt, is going to directly compete with a bunch of cash rich giants in a time of high interest rates. Seems like it's pretty safe to bet against them even if they probably had a head start on some stuff.
Legacy manufacturers are going to be raking it in due to high interest rates, as most of them have their own finance companies, Tesla does not. Tesla purchases are typically financed through BoA or Wells Fargo.
Used cars are another interesting area. I was talking to someone who flips cars via auctions a few weeks ago and he said the auction lots are jammed with repos that they can't move. Finance companies gave out loans that were way overvalued, people couldn't keep up with payments, and now they can't unload the cars at auction because their reserve prices are too high for the flippers to be able to turn a profit. There's a huge used car bubble looming, similar to what happened with all the bad mortgages in 2008. Least insane economic model.
Auto loans are fixed. It's the cost of food, gas and utilities that are eating up people's checks. The rising interest rates affect what resellers can get for the cars they buy at auction. Used car rates have always been really high, but bow they're astronomical, like 10% with good credit, as high as 20 for bad. At 20% you've doubled the price of the vehicle, so most people's income won't even qualify them for a loan.
Canada probably has better consumer protection laws that make it harder to repo, would be my guess.
I get emails all the time from stock trading apps telling me they'll give me $50 - no, $100! - in TSLA. They are desperate to ditch this shit.
I wonder what liberal bazinga bros will do when Elon Musk had transitioned fully into failing far right crank territory. Will they just memory hole him, will they invent some stab in the back myth or will they follow him into the abyss of madness?
Most of his worth is SpaceX, which is private still and has an absurdly high valuation. He's been dumping and leveraging his Tesla shares for loans for awhile now, unsure the terms of those or how that works if the company tanks.
Is he still on the hook in that case or would it be a loss for those that took him up on the scam stocks?
