market-ticker.org / by Karl Denninger / 2017-11-19
If you want one of their alleged “Super-Roadsters” you need to ante up $5,000 now plus $245,000 more within 10 days by wire transfer.
Note that the car will not be “ready” and “deliverable” for three years according to Master Touter Musk.
What happens if “three years” turns into “never”?
You flushed $250,000 down the toilet.
May I remind you that Tesla is a money-losing enterprise and has been since it was founded. It has never made a profit, it has zero in retained earnings and you will be an unsecured, back-of-the-line creditor with your “reservation” — which they will spend the minute it comes in the door.
If the “Reservation” was a modest amount of money this might be defensible. $5,000 as a punt on a “supercar”? Sure, why not.
When it’s a quarter of a million bucks it not only is indefensible in my opinion the solicitation of same borders on criminal fraud since the company has absolutely no reasonable reason to believe it will be able to ever deliver said car.