Wednesday, September 26, 2012

Last night the electric vehicle market caved.

It was funny because Mr S. and I were having a conversation at lunch about electric vehicles. It went something like this:

Mr S. - Did you hear Tesla was opening charging stations?

Me - Charging stations. How does that work?

Him - They let people who bought Tesla's charge free for life at these stations for 30 minutes at a time.

Me - That is a complete lie. Free for life? Companies can't do that forever. Besides, I just don't understand electric cars. People know how long it takes to fill up your tank. Right? Five minutes. Yet they are trying to make be believe that a mobile nation like we are - is going to wait around for 30 minutes to charge a battery? I mean, there is a market for these cars with old people who have nothing better to do.

Him - Companies normally don't do that unless they are having a hard time selling cars.

Then we went on to talk about hot swapping batteries which I felt didn't make that much difference because it must take longer than 30 minutes to hot swap them.

Then on Doomberg BYD warned hard. This is the company Warren Buffett temporarily propped up. Profit down 97%. Which is a lot of percent. I didn't check today, but I wouldn't be surprised if it wa a penny stock now.

They also had a giant segment on Tesla who is flat out of money and is being told to speed up payment of their government loan guarantee. Plus they are selling stock to raise money.

One of the other EV companies said they'd misjudged the market. I don't remember which one now.

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