Interesting take on Tesla:
"...And I haven’t even mentioned the rise of the pitchfork-wielding consumer zombies, the some 276,000-plus who blithely plunked down deposits of $1,000 each for the Model 3, a car they may see in three-and-one-half years' time, if they’re lucky, based simply on the overheated hype generated by the media who have relentlessly portrayed Elon Musk as the Patron Saint of All that is Good and Virtuous in the New World.
I once wrote that this nation could not exist in the global economy as a Starbucks Nation of consumer zombies, that consumerism in and of itself could never replace or eclipse the fundamental importance of the production of real goods and services and its contribution to America’s industrial fabric, or there would be dire consequences.
Well, it’s too late for that..."
I've observed a 'cult' like gathering around Tesla. I don't doubt the car has its merits and its objectives interesting but we seem to be seeing quite a bit of that in the form of SJW's, climate change proponents, and political supporters (IE Obama).
I've, in addition, heard all sorts of hyperbole in defense of Tesla from it being 'the greatest car ever built', to it 'will reach Mercedes-Benz status within three years' to it 'will change everything' and so on.
All before the latest cars promised hit the market.
Look at it this way. It's like declaring a new rookie QB will be Tom Brady (not may be the next Brady but will be). It's like giving them a trophy before even entering the ring to compete. It's like giving a Nobel Peace prize to a politician who never - ahem - governed a nation; let alone promoted peace.
Of course, by the way, it's pretty clear Obama ain't no peacenik. Bush made sure of that!
Anyway.
Tesla has a lot - and I meant a lot - of proving to do before it can ever be considered in the same breath of the great automobile manufacturers.
Like many Silicon Valley start ups, the company seems to manage itself based on its promise rather than focusing on how to get to 'Mercedes-Benz' status. It appears the company believes its ideas has already made them bigger than they actually are.
***
A quick comment on putting down $1000 on a car that's filled with over runs, with a company not exactly forthright with its transparency and constant delays.
When you put down your money on an idea or concept you're basically taking a huge risk and placing your money in something in hopes it will bring you future value. If you can forego $1000 and don't care much for the following calculation because Tesla simply trumps these considerations then A) all the power to you and B) this is not for you.
It is for the average person who doesn't think about how money and how it relates to investment and wealth 'works'.
Inflation and returns on investment are the key here.
What does that mean? Let me illustrate. For this scenario let's assume Tesla doesn't deliver the car or delivers them years after the deposit is places.
If you put $1000 down in, say, 2012 and are still waiting for your product, you probably could have put your money in more productive areas - including gold and silver for many reasons we can't get into here.
Let's say, in this scenario, the time frame is 2012-2015 (since figures for, duh, 2016 is incomplete). Well, in that time frame the rate of inflation went up cumulatively 6.1%.
Which essentially means your $1000 (and let's keep the inefficiency of taxation out of this for now) is now worth $994. Which, in turn, erodes your purchasing power, which is why investing wisely is important. People try to offset inflation by, generally speaking, putting their money to work - IE investing in stocks and bonds as well as properties. If you put your money in the U.S. market, the indices rendered a 3 year 12.1% return. In theory, this means your were able to gain 6% back. So your $1000 is worth $1114. That is, at 4% per year for three years is $120 minus the $6 lost to inflation.
This is what the author is driving at; excuse the pun.
And he's absolutely right.
It's getting ugly out there and the popularity of Bernie Sanders (who insanely claimed companies like GE hurt the fabric of America - the single most successful company in human history I might add. I guess in Bernie's world there would be no GE's) only cements my perception people are not thinking properly where finance, business and economics are concerned.
No, you're feelings will not trump reality.
"...And I haven’t even mentioned the rise of the pitchfork-wielding consumer zombies, the some 276,000-plus who blithely plunked down deposits of $1,000 each for the Model 3, a car they may see in three-and-one-half years' time, if they’re lucky, based simply on the overheated hype generated by the media who have relentlessly portrayed Elon Musk as the Patron Saint of All that is Good and Virtuous in the New World.
I once wrote that this nation could not exist in the global economy as a Starbucks Nation of consumer zombies, that consumerism in and of itself could never replace or eclipse the fundamental importance of the production of real goods and services and its contribution to America’s industrial fabric, or there would be dire consequences.
Well, it’s too late for that..."
I've observed a 'cult' like gathering around Tesla. I don't doubt the car has its merits and its objectives interesting but we seem to be seeing quite a bit of that in the form of SJW's, climate change proponents, and political supporters (IE Obama).
I've, in addition, heard all sorts of hyperbole in defense of Tesla from it being 'the greatest car ever built', to it 'will reach Mercedes-Benz status within three years' to it 'will change everything' and so on.
All before the latest cars promised hit the market.
Look at it this way. It's like declaring a new rookie QB will be Tom Brady (not may be the next Brady but will be). It's like giving them a trophy before even entering the ring to compete. It's like giving a Nobel Peace prize to a politician who never - ahem - governed a nation; let alone promoted peace.
Of course, by the way, it's pretty clear Obama ain't no peacenik. Bush made sure of that!
Anyway.
Tesla has a lot - and I meant a lot - of proving to do before it can ever be considered in the same breath of the great automobile manufacturers.
Like many Silicon Valley start ups, the company seems to manage itself based on its promise rather than focusing on how to get to 'Mercedes-Benz' status. It appears the company believes its ideas has already made them bigger than they actually are.
***
A quick comment on putting down $1000 on a car that's filled with over runs, with a company not exactly forthright with its transparency and constant delays.
When you put down your money on an idea or concept you're basically taking a huge risk and placing your money in something in hopes it will bring you future value. If you can forego $1000 and don't care much for the following calculation because Tesla simply trumps these considerations then A) all the power to you and B) this is not for you.
It is for the average person who doesn't think about how money and how it relates to investment and wealth 'works'.
Inflation and returns on investment are the key here.
What does that mean? Let me illustrate. For this scenario let's assume Tesla doesn't deliver the car or delivers them years after the deposit is places.
If you put $1000 down in, say, 2012 and are still waiting for your product, you probably could have put your money in more productive areas - including gold and silver for many reasons we can't get into here.
Let's say, in this scenario, the time frame is 2012-2015 (since figures for, duh, 2016 is incomplete). Well, in that time frame the rate of inflation went up cumulatively 6.1%.
Which essentially means your $1000 (and let's keep the inefficiency of taxation out of this for now) is now worth $994. Which, in turn, erodes your purchasing power, which is why investing wisely is important. People try to offset inflation by, generally speaking, putting their money to work - IE investing in stocks and bonds as well as properties. If you put your money in the U.S. market, the indices rendered a 3 year 12.1% return. In theory, this means your were able to gain 6% back. So your $1000 is worth $1114. That is, at 4% per year for three years is $120 minus the $6 lost to inflation.
This is what the author is driving at; excuse the pun.
And he's absolutely right.
It's getting ugly out there and the popularity of Bernie Sanders (who insanely claimed companies like GE hurt the fabric of America - the single most successful company in human history I might add. I guess in Bernie's world there would be no GE's) only cements my perception people are not thinking properly where finance, business and economics are concerned.
No, you're feelings will not trump reality.
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