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(CNBC)   Elon Musk accidentally admits he's a terrible businessman   (cnbc.com) divider line
    More: Obvious, Elon Musk, Tesla's newest car factories, Tesla Motors, Silicon Valley, Automobile, supply chain disruptions, Both Berlin, Factory  
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1400 clicks; posted to Business » on 23 Jun 2022 at 1:20 PM (13 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



41 Comments     (+0 »)
View Voting Results: Smartest and Funniest
 
2022-06-23 1:02:52 PM  
And that should do a lot of good for Tesla stock value...
 
2022-06-23 1:08:26 PM  
Well he does worship TFG...
 
2022-06-23 1:10:23 PM  
I'm no Elon defender at all, but no... Not even close.

He's just saying that production costs a f*cking sh*tload of money. Building, staffing, hiring, running a new plant is insanely expensive and it's a long time before you see the money back that you sink into them.

It's why PE and Corporate America didn't build new factories here in America when they needed to, they just went overseas where it was cheaper to do that and hire workers... In hindsight, it made them a ton of money but f*cked all of us in the future. Which is nice :)

But, he's just saying that building those giant things is just throwing a ton of cash into a fire... but it's a bad analogy. Assuming you do it right, somewhere down the road they pay themselves off and you start making money from them.

THAT used to be what investing was. You dump in money and work hard and pray you got it right and eventually you make a ton of money from it... or you break even or go broke...

Nowadays if you don't profit from a move in ten second, the shareholders call for your head.

It's a terrible way to run a company and a country.
 
2022-06-23 1:37:50 PM  
He said some of the tools required to make some cars are "stuck in a port in China" because of a resurgence of Covid there and the resulting lockdowns.

Fark user imageView Full Size

Fark user imageView Full Size
 
2022-06-23 1:42:57 PM  
There are times an oversized infrastructure is more efficient. If I need to get 60 kids to school, a full sized school bus is more efficient than 20 trips with a Prius. If I need to get 6 kids to school, the Prius is more efficient.

The large monolithic factory concept works efficiently when it can run at full capacity building a single product. But if you need to make modifications to the line, or run at less than capacity it introduces its own inefficiencies.

Tesla's just learning a lesson that the legacy automakers learned 6 decades ago. And Abbot labs learned just this year.
 
2022-06-23 1:47:44 PM  
Welcome to owning a manufacturing company. It requires capital. It requires upkeep. All reduce your ability to stay cash flow positive. You're not in tech country anymore, Elon. You're dealing with mature industry issues now.

Manufacturing companies plan capacity and expansion at 10-20 year scale.
 
2022-06-23 1:52:45 PM  

Ivo Shandor: He said some of the tools required to make some cars are "stuck in a port in China" because of a resurgence of Covid there and the resulting lockdowns.

[Fark user image image 643x216]
[Fark user image image 642x225]


Yup.  It's funny watching Teh Smrtst Tek Bruh EVAR imploding day by day.
 
2022-06-23 2:05:11 PM  

Mr. Eugenides: There are times an oversized infrastructure is more efficient. If I need to get 60 kids to school, a full sized school bus is more efficient than 20 trips with a Prius. If I need to get 6 kids to school, the Prius is more efficient.

The large monolithic factory concept works efficiently when it can run at full capacity building a single product. But if you need to make modifications to the line, or run at less than capacity it introduces its own inefficiencies.

Tesla's just learning a lesson that the legacy automakers learned 6 decades ago. And Abbot labs learned just this year.


I didn't know Henry Ford was alive in the 60s
 
2022-06-23 2:05:26 PM  

aleister_greynight: And that should do a lot of good for Tesla stock value...


How else is he supposed to get out of buying Twitter?
 
2022-06-23 2:12:29 PM  
Texas and Berlin are in regions where slavery is abolished, at least on paper.
 
2022-06-23 2:16:20 PM  

Ganon D. Mire: Texas and Berlin are in regions where slavery is abolished, at least on paper.


Shiat, don't give him any ideas.  He'll probably want prison chain gangs building his cars next.
 
2022-06-23 2:18:55 PM  

NewportBarGuy: I'm no Elon defender at all, but no... Not even close.

He's just saying that production costs a f*cking sh*tload of money. Building, staffing, hiring, running a new plant is insanely expensive and it's a long time before you see the money back that you sink into them.


Well yeah, but this is Elon Musk, the smartest, most brilliant business genius on the planet, buy his own admission.  He's completely in control of his own manufacturing process, without even a pesky union to mess things up.  So if he's so farking smart and has the best product in the world and the best manufacturing process in the word, why is he losing money?
 
2022-06-23 2:21:04 PM  

NewportBarGuy: it's a long time before you see the money back that you sink into them


you mean taxpayers?
 
2022-06-23 2:49:36 PM  

shroom: Ganon D. Mire: Texas and Berlin are in regions where slavery is abolished, at least on paper.

Shiat, don't give him any ideas.  He'll probably want prison chain gangs building his cars next.


Arbeit Macht "Y's"
 
2022-06-23 2:51:09 PM  

Ivo Shandor: He said some of the tools required to make some cars are "stuck in a port in China" because of a resurgence of Covid there and the resulting lockdowns.


You know, it's almost as if basing your economy on both global supply chains and just-in-time logistics makes production incredibly brittle and prone to break at the slightest disruption.

All of this was, of course, entirely foreseeable.  Murphy's Law is known to everyone, even morons with MBAs.  But try telling that to shareholders who are laser focused on profits NOW!  NOW, NOW, NOW, NOW, NOW!

The good news is that some labor organizer really ought to be able to take full advantage.  Corporations have gotten soft.  They assume they're always going to get their way.  It wouldn't take much for a well-placed strike or two to bring things completely crashing down.

Ganon D. Mire: Texas and Berlin are in regions where slavery is abolished, at least on paper.


Berlin, maybe.  But Texas? The home of Texas Correctional Industries?  You may want to reconsider that statement.
 
2022-06-23 3:03:36 PM  
Anyone know the exchange rate for a Berlin dollars?
 
2022-06-23 3:04:29 PM  
The factory could be a full fledged member of ERCOT's harem of utility companies -- without ever completing a single car.   Cool.
 
2022-06-23 3:10:07 PM  
This is only indirectly related but I'mma post it anyway:

Fark user imageView Full Size
 
2022-06-23 3:10:23 PM  

Hawk the Hawk: Anyone know the exchange rate for a Berlin dollars?


Those would be euros.

/I know you're joking
//probably
 
2022-06-23 3:25:41 PM  
Elon Musk accidentally admits he's a terrible businessman

Apparently there are savvy businessmen somewhere out there who know how to overcome China's shutdowns that destroy their incoming and outgoing supply lines. I'll bet they even know how to operate factories without energy.

/Subby is an idiot
 
2022-06-23 3:45:36 PM  

Ivo Shandor: He said some of the tools required to make some cars are "stuck in a port in China" because of a resurgence of Covid there and the resulting lockdowns.

[Fark user image image 643x216]
[Fark user image image 642x225]


I feel like there are some alien brain bugs going around the top tiers of government and business right now that are working their asses off to exterminate the human race. That's the only way some of the shiat that they say makes sense anymore.
 
2022-06-23 3:55:59 PM  
He's saying this so he can buy back Tesla stock on the cheap. Yes, I'm serious.
 
2022-06-23 4:20:54 PM  

The Ocho: Welcome to owning a manufacturing company. It requires capital. It requires upkeep. All reduce your ability to stay cash flow positive. You're not in tech country anymore, Elon. You're dealing with mature industry issues now.

Manufacturing companies plan capacity and expansion at 10-20 year scale.


Unfortunately tech investors only think in terms of things that can exponentially the span of three years at most, even if those things eventually burn to the ground. The key is to sell it off to some sucker before it implodes. 

//Hopefully Ford and Volkswagen get to pick up Tesla buildings for pennies on the Dogecoin
 
2022-06-23 4:31:32 PM  

NewportBarGuy: I'm no Elon defender at all, but no... Not even close.

He's just saying that production costs a f*cking sh*tload of money. Building, staffing, hiring, running a new plant is insanely expensive and it's a long time before you see the money back that you sink into them.

It's why PE and Corporate America didn't build new factories here in America when they needed to, they just went overseas where it was cheaper to do that and hire workers... In hindsight, it made them a ton of money but f*cked all of us in the future. Which is nice :)

But, he's just saying that building those giant things is just throwing a ton of cash into a fire... but it's a bad analogy. Assuming you do it right, somewhere down the road they pay themselves off and you start making money from them.

THAT used to be what investing was. You dump in money and work hard and pray you got it right and eventually you make a ton of money from it... or you break even or go broke...

Nowadays if you don't profit from a move in ten second, the shareholders call for your head.

It's a terrible way to run a company and a country.


Plus, it can make a lot of business sense to run in the red, at least in other instances, if you got the money to do so.  Bezos intentionally ran Amazon deep in the red for years as it was starting up, in order to successfully undercut all the competition into oblivion and cement its status as the go to place to buy and sell books online.
 
2022-06-23 4:46:26 PM  
Musk says Tesla's factories in Berlin and Texas are 'gigantic money furnaces'

... and he is right which is why auto companies have P/E's in the low teens and not in the high 70's (or whatever Tesla is at now).
 
2022-06-23 4:50:03 PM  

The Ocho: Welcome to owning a manufacturing company. It requires capital. It requires upkeep. All reduce your ability to stay cash flow positive. You're not in tech country anymore, Elon. You're dealing with mature industry issues now.

Manufacturing companies plan capacity and expansion at 10-20 year scale.


Also, ramping up new factories takes time. Berlin just hit 1000 cars a week.  As a long-term investor in TSLA, I have zero concerns for five years down the road.

More concerned that Tesla will delay building the sub-compact hatchback that both Berlin and Shanghai have talked about. Even the Model 3 is too freaking big.  But, the KIA is good for another 5-6 years if need be.
 
2022-06-23 5:25:33 PM  

chitownmike: Mr. Eugenides: There are times an oversized infrastructure is more efficient. If I need to get 60 kids to school, a full sized school bus is more efficient than 20 trips with a Prius. If I need to get 6 kids to school, the Prius is more efficient.

The large monolithic factory concept works efficiently when it can run at full capacity building a single product. But if you need to make modifications to the line, or run at less than capacity it introduces its own inefficiencies.

Tesla's just learning a lesson that the legacy automakers learned 6 decades ago. And Abbot labs learned just this year.

I didn't know Henry Ford was alive in the 60s


Wasn't Hank the Deuce still kicking in the 69's?
 
2022-06-23 5:31:40 PM  

Muta: chitownmike: Mr. Eugenides: There are times an oversized infrastructure is more efficient. If I need to get 60 kids to school, a full sized school bus is more efficient than 20 trips with a Prius. If I need to get 6 kids to school, the Prius is more efficient.

The large monolithic factory concept works efficiently when it can run at full capacity building a single product. But if you need to make modifications to the line, or run at less than capacity it introduces its own inefficiencies.

Tesla's just learning a lesson that the legacy automakers learned 6 decades ago. And Abbot labs learned just this year.

I didn't know Henry Ford was alive in the 60s

Wasn't Hank the Deuce still kicking in the 69's?


*60's

69's works too.
 
2022-06-23 6:36:59 PM  
Trust me... it always works out when you need to get product out of the door when you overbid more and gotta let loose employees.
My checks also like it cause then I get to rape OT
 
2022-06-23 7:19:33 PM  

natazha: The Ocho: Welcome to owning a manufacturing company. It requires capital. It requires upkeep. All reduce your ability to stay cash flow positive. You're not in tech country anymore, Elon. You're dealing with mature industry issues now.

Manufacturing companies plan capacity and expansion at 10-20 year scale.

Also, ramping up new factories takes time. Berlin just hit 1000 cars a week.  As a long-term investor in TSLA, I have zero concerns for five years down the road.

More concerned that Tesla will delay building the sub-compact hatchback that both Berlin and Shanghai have talked about. Even the Model 3 is too freaking big.  But, the KIA is good for another 5-6 years if need be.


I would be simply due to the fact that Tesla stock is way way way over valued for essentially no reason I can see. Its due for a major crash in value.
 
2022-06-23 7:24:09 PM  

jayphat: He's saying this so he can buy back Tesla stock on the cheap. Yes, I'm serious.


That's a bingo
 
2022-06-23 7:26:03 PM  

Decorus: natazha: The Ocho: Welcome to owning a manufacturing company. It requires capital. It requires upkeep. All reduce your ability to stay cash flow positive. You're not in tech country anymore, Elon. You're dealing with mature industry issues now.

Manufacturing companies plan capacity and expansion at 10-20 year scale.

Also, ramping up new factories takes time. Berlin just hit 1000 cars a week.  As a long-term investor in TSLA, I have zero concerns for five years down the road.

More concerned that Tesla will delay building the sub-compact hatchback that both Berlin and Shanghai have talked about. Even the Model 3 is too freaking big.  But, the KIA is good for another 5-6 years if need be.

I would be simply due to the fact that Tesla stock is way way way over valued for essentially no reason I can see. Its due for a major crash in value.


I mean, it's already come down from 1100 to 650-700ish in the last couple of months.  I still wouldn't buy it yet.
 
2022-06-23 8:07:25 PM  

shroom: Hawk the Hawk: Anyone know the exchange rate for a Berlin dollars?

Those would be euros.

/I know you're joking
//probably


I would have guessed it's a Brazilian dollars, but such a number seems un real.
 
2022-06-23 8:37:00 PM  

LrdPhoenix: NewportBarGuy: I'm no Elon defender at all, but no... Not even close.

He's just saying that production costs a f*cking sh*tload of money. Building, staffing, hiring, running a new plant is insanely expensive and it's a long time before you see the money back that you sink into them.

It's why PE and Corporate America didn't build new factories here in America when they needed to, they just went overseas where it was cheaper to do that and hire workers... In hindsight, it made them a ton of money but f*cked all of us in the future. Which is nice :)

But, he's just saying that building those giant things is just throwing a ton of cash into a fire... but it's a bad analogy. Assuming you do it right, somewhere down the road they pay themselves off and you start making money from them.

THAT used to be what investing was. You dump in money and work hard and pray you got it right and eventually you make a ton of money from it... or you break even or go broke...

Nowadays if you don't profit from a move in ten second, the shareholders call for your head.

It's a terrible way to run a company and a country.

Plus, it can make a lot of business sense to run in the red, at least in other instances, if you got the money to do so.  Bezos intentionally ran Amazon deep in the red for years as it was starting up, in order to successfully undercut all the competition into oblivion and cement its status as the go to place to buy and sell books online.


Yeah... they did it 100% correct. No stock splits, no profits, plow it ALL into expansion.

They were right and it paid off I. The biggest way.

Honestly one of the most successful business stories ever.
 
2022-06-23 8:47:17 PM  

jayphat: He's saying this so he can buy back Tesla stock on the cheap. Yes, I'm serious.


I don't think this helps him since he's financing other deals by borrowing against Tesla stock. He can't afford to let the stock drop and it's about to because the 2nd quarter numbers are going to suck.

I suspect this is the reason he just slashed payroll like he's Neutron Jack Welch. He's trying to get ahead of the bad news.
 
2022-06-23 8:50:22 PM  

Mr. Eugenides: jayphat: He's saying this so he can buy back Tesla stock on the cheap. Yes, I'm serious.

I don't think this helps him since he's financing other deals by borrowing against Tesla stock. He can't afford to let the stock drop and it's about to because the 2nd quarter numbers are going to suck.

I suspect this is the reason he just slashed payroll like he's Neutron Jack Welch. He's trying to get ahead of the bad news.


And just like every other CEO who uses layoffs to raise the stock price, I bet he's gonna start biatching when his productivity drops next week after slashing jobs this week.
 
2022-06-23 9:23:56 PM  

Mr. Eugenides: jayphat: He's saying this so he can buy back Tesla stock on the cheap. Yes, I'm serious.

I don't think this helps him since he's financing other deals by borrowing against Tesla stock. He can't afford to let the stock drop and it's about to because the 2nd quarter numbers are going to suck.

I suspect this is the reason he just slashed payroll like he's Neutron Jack Welch. He's trying to get ahead of the bad news.


The way that stock works, it probably goes up 30% at earnings.
 
2022-06-23 9:34:53 PM  

Mad_Radhu: Ivo Shandor: He said some of the tools required to make some cars are "stuck in a port in China" because of a resurgence of Covid there and the resulting lockdowns.

[Fark user image image 643x216]
[Fark user image image 642x225]

I feel like there are some alien brain bugs going around the top tiers of government and business right now that are working their asses off to exterminate the human race. That's the only way some of the shiat that they say makes sense anymore.


Yeah, I've been wondering more and more if the people in charge (just about everywhere) regularly drink lead martinis or give themselves TBIs for fun. A lot of them have always managed to be dumb and out-of-touch, but now it's like they have rabies.
 
2022-06-23 10:05:38 PM  

Decorus: natazha: The Ocho: Welcome to owning a manufacturing company. It requires capital. It requires upkeep. All reduce your ability to stay cash flow positive. You're not in tech country anymore, Elon. You're dealing with mature industry issues now.

Manufacturing companies plan capacity and expansion at 10-20 year scale.

Also, ramping up new factories takes time. Berlin just hit 1000 cars a week.  As a long-term investor in TSLA, I have zero concerns for five years down the road.

More concerned that Tesla will delay building the sub-compact hatchback that both Berlin and Shanghai have talked about. Even the Model 3 is too freaking big.  But, the KIA is good for another 5-6 years if need be.

I would be simply due to the fact that Tesla stock is way way way over valued for essentially no reason I can see. Its due for a major crash in value.


My basis is around $6/share. Not worried.
 
2022-06-24 6:53:26 AM  
I had a family of Jesus freaks move from one Tesla factory to another Tesla factor in an (obviously) shiattier state than the original factory.

If they get laid off, at least they have their Jesus people to pray for them 🤣🤣🤣
 
2022-06-24 2:51:46 PM  
Still feeling the sting of the twitter deal eh?
 
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