Archive for the ‘Automotive Industry’ Category

What’s Good for Tesla Is Good for Elon Musk

Monday, April 24th, 2017

It’s not surprising that I don’t know anyone who owns a Tesla, given that total sales since the company was founded in 2003 barely top 200,000 vehicles (and all but 12 were sold in Hollywood).

In contrast, General Motors typically sells more than a half million vehicles in a quarter. Worldwide, there are more than 907 million consumer vehicles and 329 million commercial vehicles in use, leaving Tesla with a market share of just above 0%.

What is surprising is that Tesla is now the number one auto manufacturer in America, based on market cap (although its rank has recently been floating around between one and two).

How can a company that’s unprofitable and that sells vehicles that almost no one owns be the country’s top auto maker? Granted, GM and Ford aren’t the companies they used to be, but Tesla isn’t even close to what GM and Ford are now.

Tesla’s high market cap is a result of America’s love affair with all things considered to be green, media hype, Hollywood hype and Elon Musk hype. It’s appropriate that the company is named after Nikola Tesla, whose alleged invention of an electric car in the 1930s turned out to be a hoax.

Having never owned or even driven one, I can’t say whether Tesla vehicles should be the next big thing. Online reviews aren’t very helpful, either. Car and Driver gives the sleek Tesla Model S five stars, while the first review on Consumer Affairs gives his Tesla one star and says, “It’s worse than you can possibly imagine … ”

But it’s really not about cars, is it? (more…)

Japanese ‘Quake Hurts U.S. Economy

Thursday, June 2nd, 2011

The Japanese tsunami and earthquake are having a greater impact on the U.S. economy than previously expected.

According to CNBC.com, “A series of analysts have recently cut their second-quarter gross domestic product projections, based in large part on the impact that the Japan disaster is having on the automotive industry.  Factory shutdowns and ensuing problems with getting parts have slowed vehicle production, a move likely to drive up prices, increase unemployment and slow consumer spending, according to recent projections from economists at Goldman Sachs and Deutsche Bank.”