Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Microsoft Corp. - Moderated (MSFT) -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (13037)	9/12/2006 2:17:11 AM
From: schrodingers_cat	Respond to of 19790

Hi Lizzie! I am going to partially agree with you. I think Tesla will do quite well in the high priced exotic car market. Nobody really needs a 160 mph Corvette either. People buy machines like that because they are cool and exotic, and the Tesla scores well on both factors IMO. Where I think you are totally wrong is in thinking that all-electric cars are going to become mainstream. The lithium batteries are still far too expensive and there are some real concerns over their longevity and performance in high temperatures. There is also a safety concern (thermal runaway) which Tesla is going to have to make sure they handle right. A successful Tesla will drive down prices but not nearly enough for the mass market. Britain has a lot of specialist low volume producers like Lotus, TVR, Morgan, Bristol, Rolls-Royce and Aston Martin so it is a good place to manufacture a car like the Tesla. I don't see Tesla as being very profitable in the long run , but it might be very lucrative for the VCs if they can hype it as the next big thing the way they did with the dotcoms.