It was a limited edition, founders series, car. The Ford Motor company paid up to spy on the competition, paying about $200k for the latest Tesla suv.
These cars are ridiculous. I want one.
“Wow, I hope that investment pays off in some good intelligence,” Michelle Krebs, senior analyst for researcher Autotrader.com, said of the premium Ford paid. “If you’re going to be one of the early buyers, you’re probably going to pay well over list. But that’s significant.”
“We’re going to definitely see more electrification and light-weighting,” Krebs said. “Those are the things I suspect Ford would be taking special note of as they develop their sport utilities of the future.”
Tesla’s first Model Xs are limited-edition Founders Series — fewer than 100 of them were made — that typically go to board members and close friends of the company like Google co-founder Sergey Brin. Those are followed by the Signature Series models, which require a $40,000 deposit from customers and start at $132,000. The window sticker price on the all-wheel-drive Model X P90D that Ford purchased is $144,950, including the $10,000 Ludicrous Speed Upgrade that boasts a 0-to-60 miles per hour time of 3.2 seconds.
It’s worth mentioning that without the economic system called capitalism, none of this would be happening now. The fucking electric car, an SUV no less, can get up to 60mph in 3.2 seconds?!
By the way, the government is mandating cars run at 54.5 miles per gallon by 2025. I like the direction the automakers are going, especially TSLA.
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It’s cool tech, but once a lithium cell wears out it becomes a 1000lb block of toxic waste. This is why Elon Musk scares the dickens out of me with his “lithium batteries for everyone” agenda. We don’t have the infrastructure to handle recycling lithium cells on a mass scale and for the moment we just export it overseas where they bury it.
+1
Just means someone’s going to step up and build that infrastructure. JCI maybe?
That interior is gorgeous. Art in simplicity.
Tesla’s patents were open source inJune ’14. What else would Ford need?
Patents mostly tell you what you would have to work around. Patents in some industries, like pharma might have some “magic formulas”, but most patents don’t give details on implementation (you can even patent ideas without ever having shown that they work as described).
From a production vehicle, Ford can look into materials used, fabrication methods used for parts, assembly methods, and a lot of choices Tesla engineers have made to solve problems that might be unique to high-performance electric vehicles. Ford also can start reverse engineering control software, to see what responses the control system makes to changes in the variables used as input.
The Tesla doesn’t have a trans and electric motors have almost immediate access to max torque, unlike internal combustion. The only things limiting the acceleration are the tires and probably an onboard computer regulating max power inputs.
I hope not to be in an electric power scooter in 2025.
Drive one. You will not just like it, you will fall in love with it.
$55k premium? I bet Ford execs dropped $55k in one night at Scores after receiving bailout money.
Wait. Detroit strip clubs =/= Scores. Revised down to $25k.
Ford did not receive one dime of bailout money.
Technically, you are correct. It was a $5.9 Billion loan from the federal government issued in 2009.
If it walks like a duck, and quacks like a duck…
Should I thank the economic system of democratic socialism for the quite generous “rebate” I get for buying one?
Yes.
The best economies use a blend of capitalism and socialism, because neither one alone are up to the challenges of a modern developed society. “Socialist” boosts to development, sale, and use of electric vehicles go far beyond the buyer rebates.
Yes, I agree, the blends are best.
The X is honestly the ugliest car I’ve ever seen in person. A horrible cross between a minivan and a Pontiac Aztec (discontinued thank God)…
Definitely looks like a dog’s dinner. The Model S at least has a tasteful if bland appearance. This is coming from someone who likes the i3 so take it for what you will.
I’m shorting Tesla when the time is right. They can’t run a car company, despite their superior technology. Way too much debt means that as car sales peak (which it looks like they are) and if the stock market goes down, their car sales disappear (and they actually face an unanticipated expense if they have to refund deposits).
What’s more, even today they have negative Operating Cash Flow (even before subtracting Cap Ex), so they can’t pay their bills without issueing stock or more debt.
as car sales peak (which it looks like they are)
That claim seems very premature, given that Tesla is currently selling into a very small segment of the automobile market.
Huge growth is possible if Tesla can produce desirable vehicles at a low enough price point. Can they? I don’t know. A claim that sales have peaked implies that they can’t, and I think such a call is pretty speculative at this point.
their car sales disappear (and they actually face an unanticipated expense if they have to refund deposits).
I looked into this back when Cain Thaler was mistakenly accusing Tesla of improper accounting. I’ve forgotten the details, but I recall that Tesla was appropriately conservative (at the time) about how they booked customer deposits, not including them in revenue until a vehicle was delivered. If that is still the case, return of deposits would not affect revenue or net earnings. It affects cash flow and cash on hand, of course, but Tesla probably books some or all of the deposits as reserved assets. If deposits are fully reserved, the impact is basically zero. The stock would get killed, of course, because forecasts would be cut like mad if something happened that had customers clamoring to get their deposits back.
What’s more, even today they have negative Operating Cash Flow (even before subtracting Cap Ex), so they can’t pay their bills without issueing stock or more debt.
You would have to dig into more detail to see if this is a small problem or a large one. Growing companies consume cash in a lot of ways beyond cap ex. Investors and lenders should expect Tesla to continue at negative operating cash flow most quarters for some time to come, and the stock price and loan terms should reflect that expectation.
I’m shorting Tesla when the time is right.
Always the best time. 🙂
High-profile story stocks like Tesla are very likely to offer some good opportunities. Individual investors don’t seem to be in the mood to offer the kinds of shorting opportunities (and risks!) that came up during the tech bubble, but that won’t last forever.
as car sales peak – I wasn’t clear on this, but I was referring to US car sales from all manufacturers, not just Tesla car sales. I assume that if all car sales go dwon, Tesla sales will also be affected
their car sales disappear – you’re mostly likely right on this not affecting revenue/expenses
they can’t pay their bills without issueing stock or more debt. – leveraged companies have harder times surving economic downturns. Falling sales (if/when this happens) will have a negative effect on their ability to raise outside cash, with an unfavorable feedback loop
I’m shorting Tesla when the time is right – don’t get in the way of a consumer-loved train. Reminds me of Netflix stock…
PS thanks for the feedback
Read Elon’s biography before you sell him short. He’s a true savage who would rather loose every cent of his personal fortune than let TSLA fail. He also has lots of billionaire friends who have bailed him out once already and made a ton doing it. I’d never short a company he’s personally invested in and acting CEO. Id rather just pass on being long.