I've mentioned Tesla and how it looked like they could go bankrupt. I was a huge Tesla fan until the Solar City bailout, a move that according to analysts ended up costing them a billion dollars a year. Well before that nugget was revealed, I stepped back and reevaluated. The bailout made absolutely no sense. Tesla kept losing money. My time as a Tesla fanboy came to an end. I decided I had no confidence in the company unless they could turn a profit for two quarters in a row. They've turned one in a row before. It didn't stick. After the bailout, the loss per car began to grow instead of shrink. It looked like a train wreck in slow motion.
It's taken a lot longer than it should have, but Tesla finally made a profit. Third quarter results came in the other day. The train wreck, if not stopped, has at least slowed down. Will they be able to do it again next quarter? Time will tell. They've done so many wrong things I have a hard time placing any confidence in them. Stories in the past have described Tesla as having a very high lemon rate. That has not changed.
I've looked at them partly from the analyst side but mostly from the consumer side. I can't afford a Tesla, but I kept track of them hoping for the day I could. After the Solar City fiasco that changed. If the funds came through today, I would buy something else. It would still be electric. It would just be a different brand. Maybe later I've reevaluate but not today.
Have a great weekend.
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