Re:Tesla is heading for a cash crunch
by dragonwriter on Friday April 06, 2018 @09:07AM
(#16772870)
> So capitalism is supposed to be about taking risks and (potentially) getting rewarded
No, capitalism is about owning capital and getting rewarded. That's why it was called “capitalism”, and not “riskism”. That's why, while all actors in the system take risks, the lions share of the rewards go the holders of capital.
But, anyhow...
> So here's a company (or two if you count spacex) that is taking huge financial and organisational risks and running at the edge of their capacity to expand all the time and all the industry observers just shit their pants in fear about it and try to shoot it all down.
SpaceX coverage is fairly positive, so let's not count them in this criticism. The financial press is frequently negative on Tesla because they repeatedly keep failing to meet what Tesla management announces they are going to do (with production targets for the Model 3, they've repeatedly failed to meet them, adjusted then downward, and failed to meet the adjusted targets.) Even to the extent that it's defenders characterize capitalism as being about rewarding risk taking, they don't say it's about rewarding blind risk taking.
No, capitalism is about owning capital and getting rewarded. That's why it was called “capitalism”, and not “riskism”. That's why, while all actors in the system take risks, the lions share of the rewards go the holders of capital.
But, anyhow...
> So here's a company (or two if you count spacex) that is taking huge financial and organisational risks and running at the edge of their capacity to expand all the time and all the industry observers just shit their pants in fear about it and try to shoot it all down.
SpaceX coverage is fairly positive, so let's not count them in this criticism. The financial press is frequently negative on Tesla because they repeatedly keep failing to meet what Tesla management announces they are going to do (with production targets for the Model 3, they've repeatedly failed to meet them, adjusted then downward, and failed to meet the adjusted targets.) Even to the extent that it's defenders characterize capitalism as being about rewarding risk taking, they don't say it's about rewarding blind risk taking.