Tesla’s Reality Check

June 5th, 2019 Posted by On Our Mind 4 comments

In an article about how far fewer people are buying Tesla cars and the subsequent decline of Tesla stock, the reporter quoted Tesla founder Elon Musk reassuring Wall Street analysts, “The inhibitor is affordability. It’s got nothing to do with desire.”   Musk was explaining that all is okay because countless customers still desire Tesla cars, they just can’t afford them. 

Well, that clear things up.

However, I’d like to add a few things to the wish list that I too desire, yet can’t afford. My husband and I would very much like to have homes in Jerusalem and a number of other Israeli cities. We’d also appreciate houses in a number of other places around the world including British Columbia. While we’re at it, if affordability is just a pesky side issue, let’s make some of these waterfront houses. 

That is just for a start. Desire can be an endless master.  The beauty of a price-based economy is that it helps people know what they can afford and helps keep them within their budgets.  One of the reasons that the private sector runs more effectively than government is that it only provides things that people can afford as well as desire. Our skyrocketing national debt, as well as cities and states whose budgets don’t balance, is a result of offering citizens and employees things they want (in exchange for votes) without worrying about whether they are affordable. Mr. Musk’s company received this kind of hand-out from the Obama administration. It’s time for him to re-enter the world the rest of us inhabit.

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4 comments

Art Carnrick says:

Great point! The only thing Elon Musk has engineered (that looks viable) is the home storage battery, not his battery on wheels. Here in Florida we all have generators in case of a hurricane… a solar based home storage battery would be useful and probably not all that pricey based on some Facebook popups I’ve seen. I suppose the problem is you can’t drive a home based battery system around town to show off…

Janet McIntosh says:

It pains me to suggest that the thinking of most of the world is not where it should be. So glad I have a Rabbi to teach me how the world REALLY works 😃 !!!!! Heaven forbid God give us all a dose of reality right now.
Grateful 🙏

Steve Akins says:

In March 2019 I bought a new Tesla Model 3 for the same price my friend bought a Kia Crossover. Elon appears to not understand the power of advertising. Tesla’s now start in the mid 30,000s but the story is not being told. It’s an amazing vehicle.

Rabbi Daniel Lapin says:

Dear Steve–
We have never criticized the car; in fact I (RDL) have written about my first exciting ride in one. What I have pointed out repeatedly is why I doubt the stock is a good investment and why I doubt the company will make money ever.
Cordially
RDL

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