Tesla fans love to say that Tesla “isn’t like the other automakers”. And yet, when it suits their propaganda, they compare them as if they were.
When looking at gross and net income, Tesla fans and journalists conveniently disregard the fact that Tesla is a retailer and the other automakers are wholesalers. That means there is profit on a Chevy Bolt EUV not only to GM, but also to the dealer. However, the whole slew of articles proclaiming Tesla “the most profitable car maker on Earth” are only comparing to the first level of profit which goes to the manufacturer.
Come on, you didn’t really think the automaker with the highest levels of manhours per unit and scrap per car would actually be the most profitable? Or did you wonder how the math worked on that one? Well now you know. It’s propaganda by cherry picking the wrong set of numbers.
And Tesla apologists get caught doing this all the time. Remember back when they said that the Model S was the best selling mid-size luxury car? Yeah, they specifically ignored the more appropriately sized 5 series and chose the 7 series where they could look good. Of course, the 5 series knocked out the Model S. It wasn’t even close.
Or how about analysts like Gene Munster who’ve been caught comparing global Tesla numbers to automakers figures for only in North America? The tricks never end for these shysters and gullible investors believe them.
But the big thing that stands out to me is the level that the automakers spend on service and support. Tesla doesn’t have a dealership network. They have an inherently inefficient system whereby they handle all service at the corporate level. But GM, Ford, et al have hundreds or thousands of dealerships globally that also spend money on a service infrastructure. The money that is spent on service and support for every other automakers is much more per car than Tesla.
That’s part of why service and support for Tesla sucks. They don’t spend near the money as what other automakers do on their infrastructure.
If you don’t know why Tesla is called a giant fraud, you intentionally have your head in the sand at this point. The stock price is a giant bubble headed for collapse. The value is based on much more than selling cars. And Tesla isn’t even good at that. On an apple-to-apples basis, Tesla is one of the least profitable companies. They are also among the lowest quality and the hardest to service and insure. Not a recipe for success.
The growth is over in many regions already. It won’t be long until the stock story is too.
Come on, you didn’t really think the automaker with the highest levels of manhours per unit and scrap per car would actually be the most profitable? Or did you wonder how the math worked on that one? Well now you know. It’s propaganda by cherry picking the wrong set of numbers.
And Tesla apologists get caught doing this all the time. Remember back when they said that the Model S was the best selling mid-size luxury car? Yeah, they specifically ignored the more appropriately sized 5 series and chose the 7 series where they could look good. Of course, the 5 series knocked out the Model S. It wasn’t even close.
Or how about analysts like Gene Munster who’ve been caught comparing global Tesla numbers to automakers figures for only in North America? The tricks never end for these shysters and gullible investors believe them.
But the big thing that stands out to me is the level that the automakers spend on service and support. Tesla doesn’t have a dealership network. They have an inherently inefficient system whereby they handle all service at the corporate level. But GM, Ford, et al have hundreds or thousands of dealerships globally that also spend money on a service infrastructure. The money that is spent on service and support for every other automakers is much more per car than Tesla.
That’s part of why service and support for Tesla sucks. They don’t spend near the money as what other automakers do on their infrastructure.
If you don’t know why Tesla is called a giant fraud, you intentionally have your head in the sand at this point. The stock price is a giant bubble headed for collapse. The value is based on much more than selling cars. And Tesla isn’t even good at that. On an apple-to-apples basis, Tesla is one of the least profitable companies. They are also among the lowest quality and the hardest to service and insure. Not a recipe for success.
The growth is over in many regions already. It won’t be long until the stock story is too.
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