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Chevy Volt a Failure - GM to Layoff 1,300

Discussion in 'Sports and News' started by Evil Bastard (aka Chris_L), Mar 2, 2012.

  1. qtlaw

    qtlaw Well-Known Member

    Good luck with that Musk. Unless of course the logs actually show that NYT reporter made up his story without full disclosure of all his travels.
     
  2. 93Devil

    93Devil Well-Known Member

    Stopping in Manhattan is not the quickest way from DC to Boston.

    It would be very foolish of a writer to write something like that without having everything done by the book, but it would also be very unwise in a PR sense to argue back when you are wrong.

    I have a feeling this story is not finished.
     
  3. Boom_70

    Boom_70 Well-Known Member

    He was not going to Boston if you read the story. He was going to Milford Ct, He made it but had to turn off the heat and drive the NJ turnpike at 50 MPH to preserve power.

    Something simple seemed very complex in a Tesla. You could get from DC to Milford in a junker driving 70 mph all the way and have plenty of heat and not have to stop for an hour along the way to recharge your battery.
     
  4. 93Devil

    93Devil Well-Known Member

    The lede...

    Washington — Having established a fast-charging foothold in California for its electric cars, Tesla Motors has brought its formula east, opening two ultrafast charging stations in December that would, in theory, allow a speedy electric-car road trip between here and Boston.
     
  5. murphyc

    murphyc Well-Known Member

    Two months ago, Auto-every-other-week had a slight charging issue with a Tesla.
    http://www.autoweek.com/article/20121210/carnews/121219982
     
  6. FileNotFound

    FileNotFound Well-Known Member

    Musk's handling of the NYT story is a textbook example of how NOT to handle tech PR.

    The Tesla is using a lot of brand-new technology. It's reasonable to expect that there'll be flaws, and that it'll work differently than existing technology. The story indicated that this was basically what Tesla reps said to the NYT reporter.

    Tesla's response needed to be, "Yeah, we found some glitches, our dev team is working on them now and we'll and release a 1.1 version next month." And then nothing until next month. Even if the NYT was wrong or exaggerated the issues (both of which are highly unlikely), it would serve Tesla far better to do some more testing, come up with a system to deal with the (thoroughly expected) problems with drawing large amounts of electricity from a battery in cold weather, and then announce next month that those solutions have been implemented. The positive buzz this would create would far outweigh any damage done by the NYT story. Again, reasonable people expect that new technology is going to be glitchy.

    Musk's going on the offensive is going to simply draw more attention to the nearly half-billion dollars of public money that his company has buzzed through. The last thing he needs is to turn public sentiment against him. The automotive press has declared the Tesla Model S a home run. He doesn't seem to realize how far ahead of the game he actually is. His response to the NYT indicates to me that he and his company are feeling a bit desperate, which doesn't bode well at all for Tesla's future.
     
  7. 93Devil

    93Devil Well-Known Member

    I disagree.

    If this reporter took a joy ride around Manhattan and subsequently ran out of juice, I would call him out on it. He trashes the product in the story.

    But I would only call them out if I had stone cold proof that he did.
     
  8. Boom_70

    Boom_70 Well-Known Member

    Did you even read The Times story?

    If you are going to spend $100,000 on a car you should be able to drive it where you want and not have to worry that each extra mile is going to you stranded without power.

    The fact that this car actually ran out of juice on the highway makes you wonder how these cars will do in metro areas with a lot of traffic during rush hour.
     
  9. The Big Ragu

    The Big Ragu Moderator Staff Member

    I imagine he is feeling desperate. They have about $800 million in debt and growing, and late last year they had only $30 million in working capital left at one point. Which was why the Federal government gave them an extension on paying back the $465 of public money some genius gave them (rather than dealing with the fallout of another Solyndra). They apparently were drawing down the government loan to make interest payments. Like borrowing from one credit card to make the interest payments on your other credit card. And they haven't hit a single production deadline as promised.

    Musk is pretty much out of slight of hand tricks to get people to give him money to throw into his sieve. Either they surprise people with some miracle when they report earnings or the company is gone. I don't know if it is the smart money, but the short interest in that stock is really high. There are a lot of people expecting the stock price to plummet, including Barclays, which has a significant short stake. Heading into January, open short positions in stock equaled a quarter of the company's outstanding shares, which makes it one of the most shorted stocks out there.

    Maybe all of that money is wrong. It's certainly possible. But if they are making a good, educated bet, it will mean that its the end of the line soon for Musk. There is no place left to borrow from and there are no more secondary equity offerings -- he's exhausted too much good will. So unless they start producing cars soon and delivering them to buyers for cash, it's over.

    If the reality is that he's nowhere near being able to do that -- and every production promise has been bullshit up until now -- yeah, of course he is desperate. That NY Times review is a killer for him.
     
  10. cranberry

    cranberry Well-Known Member

    I'll be interested to see the drive data that Tesla publishes.

    http://www.mercurynews.com/business/ci_22567808/teslas-stock-dips-after-negative-review-its-model

    Some analysts doubted the bad review would hurt Tesla over the long term. Elaine Kwei, of Jefferies & Co., said in a report that she still rates Tesla stock a buy.

    "After digging into the background behind the article," she wrote, "our conclusion is that operator error likely played a primary role, due to improper charging protocol."
     
  11. FileNotFound

    FileNotFound Well-Known Member

    I want Tesla to succeed. I want the Volt to succeed. I want charging outlets at every parking space in my apartment complex, and I want to be able to drive a relatively non-polluting, high performance car. Given time and reasonable expectations, I think it can happen. I think Tesla, particularly, has been given plenty of both.

    A company that sees opportunities in its failures -- say, Apple -- succeeds. A company whose leader whines like a petulant baby and screams "CONSPIRACY!" when a review is less than glowing is doomed.
     
  12. cranberry

    cranberry Well-Known Member

    A CEO has every right to complain if he believes his product is misrepresented in a review because of shoddy work.

    Musk suggested a conspiracy? Where did you read that?
     
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