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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (21242)	8/22/2018 9:53:56 PM
From: robert b furman	3 Recommendations Recommended By John Pitera longz roguedolphin Read Replies (3) \| Respond to of 33421

Hi John, All other manufacturers have a franchise system. A system where dealers pay the floorplan covering expense of the the inventory. TESLA has their own service centers. ALL other OEM car manufacturers must pay the dealer organization to repair the OEM's defects. Independent dealers have a lower cost than OEM manufacturers. So when the rework is done at factory owned stores - they absorb the total cost. Not sure at all, with their "franchise free" business model that it is all so efficient if they are having rework problems at an OEM's cost to repair those defects . Could very well be part of the business model's unresolvable cash flow problem!?? Elon' s working late getting an education of how efficient an OEM must be to earn a low margin. His one killer mistake was taking on a low margin business with high R&D expense on his side. Then if you don't make it last - you have all of the defect expense to reserve as warranty expense. If you do that wrong, any buyer will pay a purchase price but the cost of warranty liabilities will be subtracted from that transaction price. I don't think it is going to be pretty. The auto industry's history is littered with better cars - that didn't make money and crashed. Stutz bearcat, cord,tucker,studebaker blah blah blah. JMHO It's a generational short! Bob

To: John Pitera who wrote (21242)	8/23/2018 9:26:28 PM
From: sixty2nds	2 Recommendations Recommended By John Pitera robert b furman Read Replies (1) \| Respond to of 33421

I have never been a TSLA fan. Electric cars have been a pipe dream since the 70's. Actually even earlier if you dig a bit... Without the subsidies this FAILS. The city of Austin TX prides itself on its renewable energy. Try as you might you can NOT get energy cost figures. The only way it works is the Electric utilty is owned by the city. End of the day the electric bills are another tax... Well over $100,000,000 per year is pumped into the city budget from the electric utility...that is an old number. John you are in Houston. You remember the SW Nuclear Power Plant fiasco. It is Ground hog day.... TSLA = Dead Man Walking I can't believe a new model car production in today's environment produces less than 80% efficiency. This isn't the '90's