Will SpaceX bail out Tesla?
Link here. There appears to an effort on Wall Street to convince SpaceX to use its significant profits to bail out failing Tesla. It is also unclear whether Musk agrees with this approach.
If SpaceX does this, it will be a very bad thing for the company’s future, throwing good money after bad. Musk might love both companies and what they are trying to accomplish, but the future of the two companies appears to be heading in opposite directions. To weigh SpaceX down with an unprofitable company that has a failing product would seriously harm SpaceX’s abilities in the future.
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Link here. There appears to an effort on Wall Street to convince SpaceX to use its significant profits to bail out failing Tesla. It is also unclear whether Musk agrees with this approach.
If SpaceX does this, it will be a very bad thing for the company’s future, throwing good money after bad. Musk might love both companies and what they are trying to accomplish, but the future of the two companies appears to be heading in opposite directions. To weigh SpaceX down with an unprofitable company that has a failing product would seriously harm SpaceX’s abilities in the future.
Readers!
Please consider supporting my work here at Behind the Black. Your support allows me the freedom and ability to analyze objectively the ongoing renaissance in space, as well as the cultural changes -- for good or ill -- that are happening across America. Fourteen years ago I wrote that SLS and Orion were a bad ideas, a waste of money, would be years behind schedule, and better replaced by commercial private enterprise. Only now does it appear that Washington might finally recognize this reality.
In 2020 when the world panicked over COVID I wrote that the panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Only in the past year have some of our so-called experts in the health field have begun to recognize these facts.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
You can support me either by giving a one-time contribution or a regular subscription. There are four ways of doing so:
1. Zelle: This is the only internet method that charges no fees. All you have to do is use the Zelle link at your internet bank and give my name and email address (zimmerman at nasw dot org). What you donate is what I get.
2. Patreon: Go to my website there and pick one of five monthly subscription amounts, or by making a one-time donation.
3. A Paypal Donation or subscription:
4. Donate by check, payable to Robert Zimmerman and mailed to
Behind The Black
c/o Robert Zimmerman
P.O.Box 1262
Cortaro, AZ 85652
You can also support me by buying one of my books, as noted in the boxes interspersed throughout the webpage or shown in the menu above.
Odd, apparently , building a quality car is more difficult than rocket science?
I think at this point, Tesla is farther from failing than before.
They have their production lines hitting 5K-6K cars a week. They seem like they are sustaining that. That is the point they claim to be making money.
Their power pack buisness is starved for batteries not customers.
Tesla isn’t failing. Their stock price represents a cult like following rather than the actual value of the company though.
They make cars and people buy them. They can’t keep up with demand. That is the opposite of a failing product. If they made cars and no one bought them, then they would be a failure.
Production is an engineering and operations problem, it can be solved.
What is troubling is the recent suit against Musk alleging he was manipulating the stock price to hurt people who shorted the stock.
This looks like something one analyst dreamed up to get attention. I’ll believe it when I see it.
We’ll see if Musk learned anything from what happened when Tesla bought Solar City…