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RE: Leo Talk 3/13/2021 -Come Join Our Chat

in LeoFinance5 years ago

Looks like EVs might take a hit again. I think most of the prototypes are probably fishy since they haven't been tested by real people yet. The entire Nikola fiasco was pretty bad then they hit Kandi. So Lordstown seems to be next. The difference between them is essentially the fact that Tesla has actual cars and has no need to fudge numbers.

https://www.investors.com/news/ride-stock-short-seller-hindenburg-adds-lordstown-hit-list/?src=A00280&refcode=Organic%20Social%7CTwitter%7CTwitter%7C2021%7CMar%7CI.com%20Article%7C0%7C%7C423695

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Are there any peniltys for this type of twisting the numbers? Is there anyone that can be trusted anymore?

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If they are falsely filing numbers to the SEC then yes, there is a lot that can be done.

That said, if the company is just stating it got an order for X number of vehicles, then there is really nothing that can be done. There are a lot of reasons, often legitimate, why a deal falls through.

So it is all in how they are lying.

In the meantime, the shorts can do a lot of damage to a company that is fudging the numbers.

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The penalties could include some criminal charges for the higher ups but these things tend to be looked into by the SEC and the feds. So I expect fines and stock price to drop. In the best case, we can expect some jail time and maybe the stock to be removed from the market.

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The difference with Tesla is they have registrations that people can pull and tie it to VINs.

A lot of the start ups appear to be outright frauds. I guess that is to be expected.

As a Tesla shareholders, seeing some of these pretenders fade away is probably a good thing.

That said, nothing is going to keep up with Tesla. If they get autonomy in the next 2 years. game over; they just changed the entire model for the automobile industry and generating profits.

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Yea the problem is that there are too many people jumping on the EV train. I don't know how many of them that are real and which ones aren't. The market for EVs will explode so if you can pick some good secondary makers, you can make a decent amount of money.

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The fact that Tesla made it does not mean it is any easier. Granted EVs are a lot easier than ICE to break into, much lower cost to set up. However, there is a reason we went 100 years without a new automaker selling 500K cars in a year. It is a tough business to get into.

Sure Amazon could do it since they have so much cash flow and credit. But it is not for the weak.

And a lot of these start ups have grand ideas. As Musk will tell you, it is a lot easier to design software than it is to build lines to pump out cares on an increasing basis.

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Yes but the thing I like about Tesla that the other dealers don't do is direct sale to the consumer. I hate the car dealers whose goal is to rip off as much money as possible.

As for the cars, even Tesla has some faults in their cars and given the need to build everything from scratch, the initial costs are huge. You need to blow plenty of money and spend years to recoup the costs.

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Any other start up that makes it will not be going direct. In fact, I would not be surprised if some of the traditional automakers start to drift away from the dealerships at some point.

Tesla has an advantage there. The manufacturer sells the car to the dealer who marks it up. Thus, Tesla can either keep the extra profit or drop the price by what the dealer is making.

Either way, they come out ahead.

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