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%.
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…)