Tesla Motors … Another Elite Theme in Collapse? / By Staff Report / Friday, December 28, 2012

Why you shouldn’t invest in Tesla stock … Financials resemble those of many struggling firms … In my last column, I wrote that Tesla Motors Inc. would have to go back to the federal government for more loans next year to stay afloat, given the state of the company’s finances. Those finances include four consecutive quarters of widening net losses, four consecutive quarters of larger operating deficits and a balance sheet that was in the red at the end of the third quarter. – John Shinal, Wall Street Journal

Dominant Social Theme: Tesla, a groundbreaking electric car company, will go on to bigger and better things for sure!

Free Market Analysis: John Shinal is back with a second article blasting Tesla, an advanced technology (green) auto company that makes both electric cars and power train components. Tesla trades on the Nasdaq under TSLA.

As both a public company and a leading electric car manufacturer, Tesla receives a lot of scrutiny for both its product and its financials. Tesla’s ¨big idea¨ is the Tesla Roadster, an electric sports car, and more recently, another big idea, the Model S, which is a luxury sedan.

The fundamental vision is to make electric cars that are just as good if not better than gas-powered cars, The dominant social theme, therefore, is that the world needs topnotch ¨clean energy¨ for the soul and also so that carbon doesn’t clog the atmosphere.

subdominant social theme would be, ¨Drive Teslas because they are fun and because you are a responsible citizen … and now you have a way to illustrate it.”

Of course, a cursory examination of global warming evidence brings us smack up against an inconvenient truth … that global warming probably doesn’t exist and that even if it did, the amount of manmade carbon in the atmosphere (versus water based greenhouse elements) won’t affect the atmosphere’s balance one way or another.

And that offers the question … Why bother to make electric autos?




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