Tesla takes on $30B in credit as it approaches unprofitability

Look, I get that Elon wants to chase AI, but why not do relatively simple, low-cost things like build a proper 7-seat SUV that uses the Cybertruck platform - or even a properly stretched Model Y platform (rather than the six-seater L)? Or how about a delivery van on a stretched Y platform?

Tesla's product line is narrow and aging rapidly.

Sorry TSLA holders, it's partly my fault as I got my 5 years old Model Y checked by a third party garage for everything that should be fixed by Tesla before the end of the main warranty period.

Is this a job for Big Balls and DOGE to tackle?

It's disappointing. They were the leading electric car company, and then they blew it. No new good models. The robotaxi that never quite works. The Cybertruck. The humanoid robot army. The out-to-lunch CEO off being a political.

Tesla should be building something like the Slate pickup. Or like BYD's midrange models. Things that would actually sell.

One of the lessons of the electric car industry is that when gas car companies build electric vehicles, the vehicles suck. They're usually adapted versions of gas cars, which means too much structure and cost in the wrong places. This usually comes out as a $5000 price penalty for the electric model. Tesla was well placed to avoid that.

But they blew it.

Beyond the long track record of unmet Musk's announcements, Tesla is strategically in a very difficult situation: it went from being the sole option for an electric car, to being a small mid-market player with quality issues.

- chinese companies are now exporting with 25% discount for similar quality - premium brands occupy the $80'000+ car segment with better comfort and quality - Tesla sells as many as Renault, a local European player, except the later built a strong alliance network to get scale economics.

I won't even mention the failure of the Cybertruck, which cannot even be exported to Europe due to its dangerous design.

In short: they'd rather merge now with a traditional car company while they have a high valuation, much like US West did with QWest at the end of the Internet bubble. Or else...

It's okay, we're an AI company now.

Invest the $30B into AI build-out with a company called SpaceX, nice. SpaceX invests some more Cybertrucks, nice.

I'm not convinced Tesla's schizophrenic strategy is any worse than the strategy of the legacy American automakers, which is to sleepwalk directly into a volcano (when Chinese EV manufactures break into the market with $10k SUVs)

Time to become SpAIceXTeslAI

Valuation +420%. Easily.

Electrek has gone completely biased with Tesla. They have done so bad, that even if this is true, I'd take it with a fistful of salt.