Regarding that car delivery: Fortunately for Tesla, they are not an automaker, because automakers manage costs and deliver cars to their customers.
Tesla has fooled Wall Street and the devotees of its product that is something that is otherworldly and is resistant to the management rules that have governed the Motor City for over a century.
Once again the company's cash burn is staggering, some $1.4 billion just in the last quarter, and the company is struggling to build and deliver its mass-market car the Model 3.
I have heard from owners who drive the company's vehicles, and they all provide enthusiastic and cult-like approval, which any business needs to succeed in today's marketplace. But as an investment and equity to own, the management rules of the Motor City have an intense gravitational pull and cannot be defeated forever.
Telsa's quest to live up to its otherworldly expectations looks more desperate than ever. The euphoria surrounding the share price is dimming and with good common sense reasons.
Global business and international commerce take a back seat to tax reform: Trump departs DC tomorrow and will be on the road through November 14. This will be his most extended overseas trip as he makes stops in Japan, South Korea, China, Vietnam and the Philippines. Treasury Secretary Steven Mnuchin and his top economic adviser Gary Cohn will stay behind in the swamp of Washington to work GOP leaders on Capitol Hill to move tax reform. From an MNC perspective, this is not a positive development if you are a CEO looking for the advancement of a US-China Bilateral Investment Treaty.
- Marc A. Ross