Reality-Distortion Field Fails for Theranos

[thriftyandboringinohio]

Re: Reality-Distortion Field Fails for Theranos

If Elon had stuck with the Roadster he could have built an entire company on the "Ferrari" of EVs. Hand built in small numbers, exceptional style and technology, high margins, endless order backlog, brand status, money to advance the development of the car technology and periodically invest in new exterior bodywork and interiors.

If Elon had stuck with the Model S he could have built an entire company on the "Rolls Royce" of EVs. Hand built in small numbers, exceptional style and technology, high margins, endless order backlog, brand status, money to advance the development of the car technology and periodically invest in new exterior bodywork and interiors.

He had two chances and missed them both. And now wants to make money in EVs selling a "mass market" vehicle when there isn't a mass market of sufficient size that can actually afford the damn things. There still isn't a "$35,000" Model 3. The starting price of the cheapest model on the Tesla website ("standard range", whatever that is, and rear wheel drive) is $38,990. That is more than I have ever spent on any vehicle I have ever purchased in my entire life. And I doubt you can get one in a lifetime of waiting. The lowest cost AWD (the next model up) is $47,990. And a "Performance" version starts at $55,990.

GRG55 your comments mad me look up the financials at Ferrari - about $4 billion in gross revenue, with $200 million net.
Elon Musk could have had something like that using your strategy.

[GRG55]

Re: Reality-Distortion Field Fails for Theranos

GRG55 your comments mad me look up the financials at Ferrari - about $4 billion in gross revenue, with $200 million net.
Elon Musk could have had something like that using your strategy.

Yes. And roughly $2.5 Billion of that revenue comes from selling Ferrari merchandise, not cars. That's the power of their brand. And one other thing most people don't realize...Ferrari has zero advertising budget. Their entire promotional strategy is their F1 team.

The voluptuous Generation 2 roadster, which Tesla now has no money or other resources to advance to market, should have been its "Supercar" second product after the original testbed roadster. An EV that could outrun, outdrag, outhandle any car on earth with head turning looks. Instead Musk fell into the same trap so many brilliant, but big ego business founders do - first they start believing their own promotional BS ("Tesla is a technology company that is going to save the planet") and then they destroy what they created by driving out all the talent that keeps the wheels on.

The Model X, with its ridiculous "flapping" rear doors, and then the Model 3 are going to prove enormous strategic mistakes for Elon Musk and Tesla.

[lakedaemonian]

Re: Reality-Distortion Field Fails for Theranos

Yes. And roughly $2.5 Billion of that revenue comes from selling Ferrari merchandise, not cars. That's the power of their brand. And one other thing most people don't realize...Ferrari has zero advertising budget. Their entire promotional strategy is their F1 team.

The voluptuous Generation 2 roadster, which Tesla now has no money or other resources to advance to market, should have been its "Supercar" second product after the original testbed roadster. An EV that could outrun, outdrag, outhandle any car on earth with head turning looks. Instead Musk fell into the same trap so many brilliant, but big ego business founders do - first they start believing their own promotional BS ("Tesla is a technology company that is going to save the planet") and then they destroy what they created by driving out all the talent that keeps the wheels on.

The Model X, with its ridiculous "flapping" rear doors, and then the Model 3 are going to prove enormous strategic mistakes for Elon Musk and Tesla.

Totally agree on the failure to refresh the Model S.

If Mercedes(S), BMW(7), Audi(A8) and Lexus(LS) turned off their consistent and expensive halo model refreshes...sales would decline to zero.

Porsche learned the lesson that egalitarian everyman models are failures(914, 924, 944) that devalue the brand.

Ferrari learned to very, very carefully match supply to demand.

i’ve told this story a thousand times, but it’s worth repeating a million more.

Ferrari was a closely run outfit financially in its earlier years. Enjoy Ferrari cheated with his priceless GTO(made 39, but needed 100 for homologation).

When asked by a horde of automotive journalists in the 1960’s how many Ferraris he was going to build that year, Enzo’s response was “one less than we have customers for them.”

This was two fold.

Enzo knew he could get premium pricing for his dealer network and premium margins for himself by having excess demand and it would also reduce his supply chain cash flow issues.

37 Ferrari GTOs? Priceless

37,000 Ferrari GTOs? worth less...much less

[Mega]

Re: Reality-Distortion Field Fails for Theranos

WE live in different times, I drove the 944 turbo, loved it but could make sence of a "2+2" that was 2+ a parcel shelf !

Porsche tried to kill the 911 with the 928, "little bastard" killed off its bigger sibling.

As for "expensive Fiat" just how many F40's did they make in the end?

Mike

[thriftyandboringinohio]

Elizabeth Holmes may soon need to cosplay Steve Jobs from a prison cell, making black turtleneck sweaters out of jailhouse art supplies.

Today was a guilty verdict on three counts of wire fraud and one count of conspiracy to commit wire fraud.
Sentencing guidelines are based upon the amounts involved. She was found guilty of stealing more than $140 million, which would suggest 10 to 20 years in federal prison.

[Milton Kuo]

Today was a guilty verdict on three counts of wire fraud and one count of conspiracy to commit wire fraud.
Sentencing guidelines are based upon the amounts involved. She was found guilty of stealing more than $140 million, which would suggest 10 to 20 years in federal prison.

Most of the charges against Holmes, including the three that were deadlocked, were for defrauding investors, most (all?) of whom are large institutional investors. To a certain extent, I can understand why so few of the charges actually stuck. The large institutional investors are supposed to know better than to get caught up in a fraud that was fairly obvious.

What's far more surprising to me is that no charges for endangering patients was even filed, at least if I understand the filings correctly. There were only two charges, of which Holmes was acquitted, of wire fraud against Theranos paying patients.

[thriftyandboringinohio]

...surprising to me is that no charges for endangering patients was even filed....

Not surprising to me.
The purpose of the law is to ensure that the rich keep their money.

Things like endangering people are secondary concerns that are addressed as time may allow.

[Chris Coles]

Re: Reality-Distortion Field Fails for Theranos



Yes. And roughly $2.5 Billion of that revenue comes from selling Ferrari merchandise, not cars. That's the power of their brand. And one other thing most people don't realize...Ferrari has zero advertising budget. Their entire promotional strategy is their F1 team.

The voluptuous Generation 2 roadster, which Tesla now has no money or other resources to advance to market, should have been its "Supercar" second product after the original testbed roadster. An EV that could outrun, outdrag, outhandle any car on earth with head turning looks. Instead Musk fell into the same trap so many brilliant, but big ego business founders do - first they start believing their own promotional BS ("Tesla is a technology company that is going to save the planet") and then they destroy what they created by driving out all the talent that keeps the wheels on.

The Model X, with its ridiculous "flapping" rear doors, and then the Model 3 are going to prove enormous strategic mistakes for Elon Musk and Tesla.

Interestingly, many years ago, I came across a UK company that had patented a new form of foam insulation that is fireproof. Instead of setting out to sell the foam as a single product that could be used by anyone needing a fire proof foam; instead they set out to create fire proof doors, and failed. It comes down to decisions; and we always have to live with the decisions we make at the time. Again, I suspect that I managed to come away with some form of rights over the technology, but did not have the funds to move forward. Food for thought? Such is life.

Going back to the matter of creating a Ferrari EV, then that market is still wide open. Takers anyone?