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Palantir

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Choice quote:

 

On March 6, at the Conservative Political Action Conference in Maryland, Christie had this to say: “We need to talk about the fact that we are for a free-market society that allows your effort and ingenuity to determine your success, not the cold, hard hand of the government,” as reported by Bloomberg.

 

http://www.forbes.com/sites/markrogowsky/2014/03/11/in-new-jersey-tesla-crashes-into-the-hypocrisy-of-chris-christie/?partner=yahootix

 

Yes, Republicans are pro-freemarket the way Democrats are anti-war.  It sounds nice in their speeches, but ends there.

 

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if tsla is able to sell directly to customers, should other automakers be able to as well?

 

hy

 

Of course.  Just like Apple has their stores where they sell computers and phones directly to consumers.  Next, Chris Christie is going to sign legislation to ban Apple from selling a computer directly.

 

Tesla services my car at cost

 

What does a dealership do for me?  Services my car at a profit.

 

It feels like a Chris Christie jobs program.  Socialist!  :D

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i agree and am all for sellling directly

 

this is definitely a interesting fight with wider implication than just tsla

 

Also eric, correctly me if i am wrong, the current situation is not quite like your apple analog. there are current existing "auto dealer" laws that are in place. now i am not saying i agree with the law or these laws are on the up and up. so its not quite the same, exactly.

 

obviously there are some room for interpretation of the law.

 

now i am not familiar with the law so someone correct me on this.

 

hy

 

 

if tsla is able to sell directly to customers, should other automakers be able to as well?

 

hy

 

Of course.  Just like Apple has their stores where they sell computers and phones directly to consumers.  Next, Chris Christie is going to sign legislation to ban Apple from selling a computer directly.

 

Tesla services my car at cost

 

What does a dealership do for me?  Services my car at a profit.

 

It feels like a Chris Christie jobs program.  Socialist!  :D

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i agree and am all for sellling directly

 

this is definitely a interesting fight with wider implication than just tsla

 

Also eric, correctly me if i am wrong, the current situation is not quite like your apple analog. there are current existing "auto dealer" laws that are in place. now i am not saying i agree with the law or these laws are on the up and up. so its not quite the same, exactly.

 

obviously there are some room for interpretation of the law.

 

now i am not familiar with the law so someone correct me on this.

 

hy

 

 

if tsla is able to sell directly to customers, should other automakers be able to as well?

 

hy

 

Of course.  Just like Apple has their stores where they sell computers and phones directly to consumers.  Next, Chris Christie is going to sign legislation to ban Apple from selling a computer directly.

 

Tesla services my car at cost

 

What does a dealership do for me?  Services my car at a profit.

 

It feels like a Chris Christie jobs program.  Socialist!  :D

 

He's probably also taking money from the firefighters.  You've got all those GM cars you know!

 

http://www.thetruthaboutcars.com/2014/01/gm-to-recall-370000-silveradosierra-trucks-for-fire-risk/

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Also eric, correctly me if i am wrong, the current situation is not quite like your apple analog. there are current existing "auto dealer" laws that are in place. now i am not saying i agree with the law or these laws are on the up and up. so its not quite the same, exactly.

 

obviously there are some room for interpretation of the law.

 

I think you are right about this.  He is the Governor of a state where the free market has been banned.  And what is his position on this?

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quoting:

 

Although Porsche sold only 155,000 cars last year, dwarfed by the VW brand's sales of 4.7 million cars, the sports-car maker reported a 173% surge in operating profit to €2.6 billion, making nearly as high a profit contribution to the group as the VW brand passenger-car division. Profit at the VW brand unit fell 21% to €2.9 billion.

 

http://online.wsj.com/news/articles/SB10001424052702304914904579436621769480200?mod=WSJ_LatestHeadlines&mg=reno64-wsj

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quoting:

 

Although Porsche sold only 155,000 cars last year, dwarfed by the VW brand's sales of 4.7 million cars, the sports-car maker reported a 173% surge in operating profit to €2.6 billion, making nearly as high a profit contribution to the group as the VW brand passenger-car division. Profit at the VW brand unit fell 21% to €2.9 billion.

 

http://online.wsj.com/news/articles/SB10001424052702304914904579436621769480200?mod=WSJ_LatestHeadlines&mg=reno64-wsj

 

Margins are important.  Selling more cars doesn't necessarily equal making more money.  This reminds of me of people who think Apple is failing because most phones sold in the world are Android.  I have no position in any auto manufacturer, but it does makes me laugh a little at the people who would never invest in Tesla because it is overvalued, yet think Fiat is a great investment because "look how many cars they sell!"  "Millions!".  Now if they can just increase their margins....  But what if they never do.  Chrysler is a company that (if we had a free market) should have went bankrupt almost 40 years ago if it wasn't for government intervention and Fiat isn't the first to try to turn that ship around in the years since.

 

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This is about SpaceX rather than Tesla, but I found this interaction between Elon Musk and Senator Richard Shelby pretty amusing.

 

from: http://nextbigfuture.com/2014/03/bad-relations-in-russia-are-now.html

 

Shelby asks Musk what he thinks about ULA's 68 consecutive launches.

 

Musk: "I would also like to point out that there were two highly publicized failure investigations, one into Delta IV Heavy and one into Atlas, that the Air Force conducted. ULA has a very good track record; it is not quite as perfect as 68 launches."

 

Gass (ULA CEO): "We measure mission success by our customer's declaration, so if they declare a mission is a success, we use the same record".

 

Shelby: "Mr. Musk, in October 2012, a secondary payload aboard a Space X Falcon 9 was sent into the wrong orbit because one of the Merlin engines powering the Falcon 9 failed."

 

Musk: "Right. Well, by ULA's definition of success, that mission was perfect."

 

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^You don't think Fiat has any high margin brands?

 

They do, but I'm not sure if buying Chrysler was a mistake or not.  Time will tell.  Also the stock was pretty cheap a few months ago.  Much more so than now.  I looked at it, but didn't pull the trigger.  Chrysler worries me.

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This is about SpaceX rather than Tesla, but I found this interaction between Elon Musk and Senator Richard Shelby pretty amusing.

 

from: http://nextbigfuture.com/2014/03/bad-relations-in-russia-are-now.html

 

Shelby asks Musk what he thinks about ULA's 68 consecutive launches.

 

Musk: "I would also like to point out that there were two highly publicized failure investigations, one into Delta IV Heavy and one into Atlas, that the Air Force conducted. ULA has a very good track record; it is not quite as perfect as 68 launches."

 

Gass (ULA CEO): "We measure mission success by our customer's declaration, so if they declare a mission is a success, we use the same record".

 

Shelby: "Mr. Musk, in October 2012, a secondary payload aboard a Space X Falcon 9 was sent into the wrong orbit because one of the Merlin engines powering the Falcon 9 failed."

 

Musk: "Right. Well, by ULA's definition of success, that mission was perfect."

 

Hahaha. Thanks for posting.

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Musk about the New Jersey situation:

 

http://www.teslamotors.com/blog/people-new-jersey

 

Thanks for posting this.  The thing about Musk I like is that he doesn't beat around the bush or mince words, but just says it like he sees it.  I love this paragraph:

 

The rationale given for the regulation change that requires auto companies to sell through dealers is that it ensures “consumer protection”. If you believe this, Gov. Christie has a bridge closure he wants to sell you! Unless they are referring to the mafia version of “protection”, this is obviously untrue. As anyone who has been through the conventional auto dealer purchase process knows, consumer protection is pretty much the furthest thing from the typical car dealer’s mind.

 

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Margins are important.  Selling more cars doesn't necessarily equal making more money. 

 

Great point...VW is a perfect example. They seem to be focused on being #1, not on profitability. How many times have we seen this movie play out?

 

Since we are on the topic....I like Toyota as an investment. Not a value play but it's trading <10 on PE and brand is stronger than ever!

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Something tells me he's going to get some flak for saying that.  He is correct though, giving money to Elon Musk rather than to someone like Bill Gates, would do humanity more good and help pull more people out of poverty in the long run.

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Something tells me he's going to get some flak for saying that.  He is correct though, giving money to Elon Musk rather than to someone like Bill Gates, would do humanity more good and help pull more people out of poverty in the long run.

 

This reminds me of those NPO trying to make a laptop for 100$ or less for the last 10 years. They have been getting grants and donations for many years yet, they can't compete with free markets bringing better priced products. It goes to show that scale and incentives are powerfull tools in regards to success!

 

BeerBaron

 

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