Earlier this week Tesla's stock dropped after reliability report was released. Yesterday, there were stories all over the web [re: Tesla self-drive mode endangering passengers]. I'm supposing that following these disturbing reports, fewer people [those who wanted a driverless car] will interested in buying the cars until this issue is fixed. http://www.bbc.co.uk/news/technology-34603364 In their defense Tesla said, drivers shouldn't abdicate driving responsibility. I suppose this isn't going to please investors that much.
Well none of these self driving cars is on the market... nor will they be in a matter of years. A lot of stuff that needs to happen both technologically and legally in order for it to happen. So it's more of an advanced experiment gone wrong, that fine we learn from our mistakes. And since these vehicles aren't even close to being sold it shouldn't have any effect in the earnings of the next few years. But of course the knowledge of issues with future designs will always push down the share price a little.
This is a non-story. Consumer Reports, according to stories I saw on Bloomberg and CNBC, conducts annual surveys of its subscribers owning cars. The rating downgrade was based upon 1,700 surveys, not their lab and road testing. Statistically, the number of returned subscriber surveys is insignificant compared to the number of vehicles on the road. For what it is worth, over-the-air vehicle software updates were ongoing during the survey period and -- think of the frequent Microsoft Windows updating bungles -- stuff happens. A Tesla owner is driving an extraordinary computer. People complain because they can. Give me a break.
In one way I'm kinda pleased about the issues because I've never been that much of a fan of the idea of self driving cars in the first place! Tesla are not the popular at the moment from what I've read and I doubt this will add much to their popularity. I think people are starting to lean towards Google's own car anyway.
Susimi, "not popular"? Tesla's popularity is rather high for the Model X (http://www.forbes.com/sites/michelinemaynard/2015/09/30/want-the-tesla-model-x-get-in-line/) and the Tesla Model S forums suggest delivery times up to 3 months. Musk is also expanding in Europe (http://www.teslarati.com/elon-visits-tesla-european-factory-promises-range-2017/).
That's a pretty big eye-opener. From what I was reading the delays and other stuff was the cause for the "lack in their popularity", but the pre-order numbers speak for themselves. That really has changed my view on them quite a bit.
Driverless cars seem so futuristic. I just think they would be totally mis used those vehicles. People mis use cruise control all the time. I jus think that it is necessary to have a driver. I would be hard pressed to relax and just let my car drive itself. It is such an ingrained habit to do the driving. It is part of me. I think it would be something that just sounds unsafe.
Stock is way overpriced, which is not to say that it can't and won't continue to be way overpriced and perhaps get even moreso. I've had puts here for a while myself. Have been long on occasion - usually for the odd day trade. http://www.cnbc.com/2015/09/09/short-seller-chanos-doubles-down-on-musk-attack.html
