Tesla's $2 Billion Chinese Gift - Another Failing Firm

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Tesla will begin construction on a $140 million property it purchased. The $2 Billion Gigafactory 3 will showcase Elon Musk's attempt to bring the American Dream to China. Unfortunately, Musk is making another blunder. Any foreign individual or enterprise must assume that they will bring capital to China, and NEVER leave with anything but the shirt on their back.

 

AT home in the USA, the $7,500 Federal EV tax incentives dropped to $3,500 on Jan. 1, 2019. Additionally, Model 3 inventories exceed 3,000 as of Dec. 31, 2018, demonstrating the lack of domestic demand.

Moreover, China's auto market has crashed. Ford, GM, Peugeot, Hyundai, and many other foreign firms have drastically cut production and are considering closing newly constructed factories. All this is the face of a declining Chinese economy and the communist government's crackdown on shadow banking. 

Anyone doing business in China is chasing fool's gold. COMMUNISM is based on government ownership of the factors of production. Tyranny, coercion, manipulation, and forced allegiance are not something the state finds optional; they demand conformity, or the offender disappears. 

Tesla will become another foreign firm "allowed" to build China's communist government a new $2 billion factory. Additionally, Tesla will be required to hire Chinese engineers and staff, most of whom will pilfer all proprietary technology and patents. China has more than 500 domestic EV vehicle startups. China's theft of technology has enabled it to build the first 100% fully electric bus fleet in Shenzhen, the first large all-electric bus transportation city in the world. Most taxis in Shenzhen also run on electric. China sells EVs for far less, even half, of the cost of a Tesla. 

Furthermore, China's totalitarian government, with its SOEs, manipulates domestic purchases, in the same manner, they controlled birthrates with the one-child policy. If a family had more than one child, the parents lost their jobs. Today, with the trade war and the Huawei CFO on trial, Chinese citizens are losing their jobs if they buy an Apple phone. The same strategy is often used by the communist government to direct the purchases of foreign products. Unwitting foreign firms purchase land, build a plant, transfer technology, only to find out a few years in that the Chinese government no longer needs their products. BMW is one of the latest examples of a company swallowing the hook, line, and sinker. 

BMW, like many gullible foreign firms, gave away half its stake in its Chinese operation in order to gain access. BMW built a multibillion-dollar plant with the newest technology and employing Chinese industrial spies. After a few years, the Chinese decided to sell their half of the venture to BMW, which is never a good sign. Usually, the Chinese government will sell its half of a joint venture to a foreign firm, then declare around six months to a year later that the foreign product should not be purchased over the domestic brand. In fear of losing their jobs, the Chinese people stop purchasing the foreign product. As sales drop to unsustainable levels, the foreign firm halts production and plans an exit strategy. Of course, this was China's plan from the beginning. 

Again, Tesla will deliver its proprietary products and services, along with a $2 billion Gigafactory to China, without any future hope of making a profit. If Elon Musk makes it out of China with his suitcase, he will be lucky.  

Watch Telsa shares sink and the company to again become a favorite of short sellers. 

 

Edited by Microbio-glutonist
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Tesla already made all it's patents free for anyone to use. Theres even one Chinese firm that has a car that looks very much like a tesla. Musk doesn't go for the moats but to advance quicker than anyone else.

Watch those shorts loose even more billions trying to break Tesla.

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(edited)

Tesla lost $24 / share today, which is a $4.1 billion market cap loss. 

If you had purchased short options, you'd be thanking me today. 

When the feds subsidize nascent technologies and capitalist ventures, it works many times. However, when Climate change and lofty thinking distracts free enterprise from capitalist principles, especially when funding Chinese joint-ventures, it NEVER is a good idea. 

I seriously doubt Musk wants to give his ideas, technology, and capital to the communist Chinese. Your assertions that Musk in philanthropic with shareholder value, to the point of giving it away, should frighten you to the point of purchasing shorts NOW! But, you may be correct that Musk is not a capitalist and is simply a philanthropist with other people's money. 

Again, I love the car, but it should be in the Getty, not on the street. A million dollars a copy makes it art, not transportation. The losses, yes losses, will continue to mount.  

See this story: 

https://seekingalpha.com/article/4207427-tesla-counting-billion-dollar-regulatory-credit-bonanza

In addition to the $7,500 customer rebate, TESLA has received welfare payments in the billions from the EPA. That does not include tax credits, employee incentives, and the state and local incentives. Musk is probably the largest single welfare recipient in world history if you include Space-X and Boring Co. 

The Communist Chinese love climate change~! As the liberals begin the new push for global welfare, the Chinese will be the first with their hands out. China, is a "developing" country that just landed on the far side of the moon, launched a railgun ship, is building new aircraft carriers, produces everything in Costco (Except lunch), claims the entire South China Sea, building the Belt and Silk Road, and has proclaimed that China's new communist ideology will rule the world by 2025. 

And, you think Musk will be part of that? Ask the Uyghurs, or go to Tibet about China's philanthropy. In fact, ask Taiwan, Inner Mongolia, Hong Kong, Macau, about their problems. 

Edited by Microbio-glutonist

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(edited)

If only you had listened! 

https://www.bbc.com/news/business-46742871

The communists use coercion to force individuals, corporations, and nations into submission. If you buy an iPhone in China, you may lose your job! Hence, Short Apple! 

Apple, move out of China ASAP! 

Edited by Microbio-glutonist
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Oh you do make me laugh at this bull. Really go and look at the facts (seeking alpha isn't to strong on facts).

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(edited)

"DA?" So, you aren't refuting anything. Instead, you denigrate, without any evidence to the contrary. 

Geely Motors will play a major competitive role in Tesla's China strategy; a role Tesla cannot win in China. 

"Win-win," a Beijing executive told me, "is what we Chinse say when we win, and then win again!" 

A recognizable giggle came over the man while smirking about the gullibility of westerns.

Edited by Microbio-glutonist

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2 hours ago, Microbio-glutonist said:

"DA?" So, you aren't refuting anything. Instead, you denigrate, without any evidence to the contrary. 

Geely Motors will play a major competitive role in Tesla's China strategy; a role Tesla cannot win in China. 

"Win-win," a Beijing executive told me, "is what we Chinse say when we win, and then win again!" 

A recognizable giggle came over the man while smirking about the gullibility of westerns.

Tesla will do just fine. China is up and coming only doing as other large bullies in the play ground called Earth have done in the past. I haven't really worried about replying to you as this has all been gone through before.

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(edited)

16 hours ago, DA? said:

Tesla will do just fine. China is up and coming only doing as other large bullies in the play ground called Earth have done in the past. I haven't really worried about replying to you as this has all been gone through before.

You are mistaken. Maybe you've never lived in China or done business in Vietnam, Laos, North Korea, or Cuba. Only a few communist nations remain. America has exploited the citizens living in these nations, whether we want to admit to it or not. The dollar is used to sanction and reward, for the purpose of maintaining America's excessive lifestyles. America's reliance on the dollar and the exportation of our pollution and jobs to China will cause a global financial collapse. It is shameful to lecture the world about "American Exceptionalism," when Americans are unwilling to stand for the amazing ideals established by the Founding Fathers. Indentured and enslaved citizens living under communist rule should not be producing America's consumer goods. 

Decades of America's failing foreign economic policies have made Chinese socialism appear heroic to many dictatorships around the globe. How the leader of the Free World came to this place in history can only be described as the sin brought about by humanity. It is disgusting and shameful.  

Edited by Microbio-glutonist
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