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Keep in mind that Elon Musk has never delivered anything he promised on the timetable he promised. He's PT Barnum, alright. So I wouldn't count on them producing the lower-priced sedan anytime soon -- let alone on any timetable he throws out there.

It requires Tesla to be able to produce batteries cheaply and on a mass scale, and they aren't even in the ballpark of ever being able to do that. It's a dream -- not a reality. All we have are pie-in-the-sky promises and endless hype -- every few weeks he hypes up his stock value with a tweet promising something years from now. Nothing tangible says he can or will be able to deliver this latest miracle. Nor does Tesla have a history of delivering on anything he promises. He simply pushes back timetables over and over again -- and then borrows more money to keep the company afloat.

There is a saying that good business people underpromise and overdeliver.

Musk just keeps promising. And he has gotten way more time than any other business would, thanks in part to hundreds of millions of dollars of loans from the U.S. government (that others don't get), preferential tax treatment. ... and most notably, credit markets that have made it ridiculously easy for anyone to borrow -- at low interest -- even when their bonds are rated junk, as his are. In his case, BILLIONS of dollars have gone into producing less than 100,000 cars in the 12 years the company has been around.

Tesla has burned through a mind-boggling amount of cash. It has more than $2 billion in debt (all junk) on its books. When it needed more money a few months ago, because its burn rate keeps accelerating, rather than go to the debt markets again -- which actually would have funded yet more of the nonsense, thanks to the Federal Reserve distorting the credit markets -- it instead decided to dilute its stock value by issuing another half a billion dollars in stock. And of course the casino that the stock market has become, ate it up rather than treating it for what it was -- a company that had just diluted its stock value, punishing anyone who already owned shares! We are in bizarro world.

Even if you forget the equity valuation, which is ridiculous (and people will look back and laugh). That much debt is just not a good formula for anything when you are years away from delivering on endless nebulous promises.

What I am saying has zero to do with how elegant the cars they actually have produced are or aren't, or whether electric cars are psychically good things. It's just common sense. You can't run up debt forever and not produce profits to simply be able to service all of that debt. Eventually, in a NORMAL world, nobody is going keep lending to you and you are going to crash.

We are in a bubble world right now, and this is the poster child for it -- both in terms of the junk debt it has ridden to stay in business, and the ridiculous valuation of its stock. It can only keep up with borrowing and diluting its stock value -- and putting off living up to the hype year after year with the PT Barnum act -- as long as that bubble is in force. And maybe it lasts a bit longer -- the Federal Reserve could announce QE4 tomorrow. But when the central bankers lose control of their downward manipulation of rates, and lenders come back to their senses, what is Tesla's plan? If rates tick up just a little -- and it is going to happen at some point -- he's busted.

Again, that has nothing to do with how beautiful the 80,000 Model S cars it has produced are or aren't. If the company can't produce the car profitably on a mass scale, that is meaningless. All Tesla has produced from a P&L standpoint is a track record of living off a generous ability to borrow money.