One Major Threat To Tesla: THEORY

[ElSupreme]

Fun fact:

The US Gov't adjusts inflation numbers for such advances in technology. E.g. if you bought an IPad 1 for $500 last year and an IPad 2 for $550 this year it is not considered 10% inflation, but gets adjusted down based on advances in technology, and inflation for that item could be 0% even though it costs you 10% more to get a computer than the year before.

I understand that but an iPad1 != iPad2. An iPad2 probably has more than 10% more computing power than the iPad1. I was trying to point out that comparing inflation of devices that are not equal is not a good method of determining 'buy[ing] as much' that I was responding too. Taking average income, and comparing to inflation it looks like we are worse off than in 1970. But as for buying stuff we are able to buy much more. We have also changed the baseline as to what a standard of living is. But that isn't relevant to saying that a gold standard somehow maintains buying power more than a fiat currency.

My 2014 dollars are worth less than a 1970 dollar. But they buy so much more computing power (using any standard you want). I can buy more computing power with $5,000 than you could buy in 1970 with $5,000,000 dollars.

Point being I can buy 'more' than someone in 1970 could. Same with most everybody. Inflation has diluted the value of the dollar, yes. But the number of dollars has also gone up. And overall most people can buy 'more' now than they could then.

I am not saying that average pay (with inflation added in) should be going down. Just arguing that a gold dollar bought more than a fiat dollar.

 

[sleepyhead]

I understand that but an iPad1 != iPad2. An iPad2 probably has more than 10% more computing power than the iPad1. I was trying to point out that comparing inflation of devices that are not equal is not a good method of determining 'buy[ing] as much' that I was responding too. Taking average income, and comparing to inflation it looks like we are worse off than in 1970. But as for buying stuff we are able to buy much more. We have also changed the baseline as to what a standard of living is. But that isn't relevant to saying that a gold standard somehow maintains buying power more than a fiat currency.

My 2014 dollars are worth less than a 1970 dollar. But they buy so much more computing power (using any standard you want). I can buy more computing power with $5,000 than you could buy in 1970 with $5,000,000 dollars.

Point being I can buy 'more' than someone in 1970 could. Same with most everybody. Inflation has diluted the value of the dollar, yes. But the number of dollars has also gone up. And overall most people can buy 'more' now than they could then.

I am not saying that average pay (with inflation added in) should be going down. Just arguing that a gold dollar bought more than a fiat dollar.

I wasn't disputing anything you said. Just wanted to point out a fun fact

 

[Norse]

What would happen if we invest in Tesla and the Dollar and the US fall apart in the next 5 years? This is a theory I believe that could be likely. If you don't follow what I'm saying, read the book The Real Crash America's Coming Bankruptcy.
What do you guys think?!
Let the discussion begin!

Don't worry, if the US collapses, so will the rest.

 

[Canuck]

Meanwhile, back in reality, the Canadian dollar continues to fall against the stronger greenback...

 

[pz1975]

Meanwhile, back in reality, the Canadian dollar continues to fall against the stronger greenback...

Hey neighbour! I don't mind as most of my investments are in USD!

 

[Auzie]

Don't worry, if the US collapses, so will the rest.

Agree. The US economy is the strongest world economy, for reasons too many to list before I had my morning coffee. Many things will have to go wrong for the economic collapse which might result in hyperinflation or high inflation. Small inflation is healthy to have to promote economic growth and is often promoted by the treasury. Japan had a deflation for many years and it did not do them much good.

 

[Canuck]

Hey neighbour! I don't mind as most of my investments are in USD!

Yes, me too. I was just making a point in response to the US dollar collapsing. Canada has one of the best banking systems in the world (arguably THE best), a strong economy, low population with tons of natural resources, relatively low debt, and yet we are currently only 90 cents to the US dollar? Why? Because the world likes the US dollar above all others - it's as plain and simple as that. And despite all the criticism of Obama, the US deficit is down, the economy is growing, and he is getting their financial house in order - after a near catastrophe. Only history can judge presidents and I bet he will be judged much better in retrospect than he is being at present.

Fortunately, I also bought US stocks at par which gives me an extra 10% over their current price. Plus, I bought US dollars when were at $1.06 (I sold some at 94 cents - should have held longer!) but I still some since we do a lot of our shopping in the States. We also get the added bonus of shorter border line-ups! (Nexus is great too.)

 

[RunningOnMangoes]

If the dollar goes broke the whole world goes broke. Dollar is the most used currency in the world. And please remember stocks are multinational, I will be sure to pick up some shares in google, cat and others, if the stock market goes down.

 

[EarlyAdopter]

For a company that sees 2/3 of future sales coming from overseas, I'd say Tesla is well positioned should the dollar drop precipitously. A weaker dollar would make Teslas cheaper overseas, helping sales numbers, or if Tesla changed their same pricing policy and held prices at the same levels then it would see more dollars come back for each sale.

 

[Auzie]

There seems to be a consensus here. A rare occurrence on TMC discussion boards. US better pulls its socks up or we are all doomed. :wink:

During GFC, which had nothing to do with Australia, my Aussie stocks were slaughtered, despite Australian economy being quite sound then.

When I realized the far reaching effect of US events and politics, that triggered my interested in US politics, especially elections. I feel cheated that I can not vote there. We outsiders can not vote but we all bear the consequences of the quality of US leadership.

 

[VolkerP]

When I realized the far reaching effect of US events and politics, that triggered my interested in US politics, especially elections. I feel cheated that I can not vote there.

you can sign petitions to the white house.

We outsiders can not vote but we all bear the consequences of the quality of US leadership.

John Connally, U.S. Secretary of Treasury:

The dollar is "our currency, but your problem."

 

[Canuck]

If it means we get more Superchargers and faster, I'm all for making Canada the 51st State!

 

[Auzie]

you can sign petitions to the white house.
:

I have done it few times. I guess I could move to US and earn my voting rights. Not likely.

 

[kenliles]

I have done it few times. I guess I could move to US and earn my voting rights. Not likely.

with the new Supreme Court ruling you'd also need a lot of $s to leverage up that vote.
Supreme Court allows more private money in election campaigns - CNN.com

 

[Auzie]

with the new Supreme Court ruling you'd also need a lot of $s to leverage up that vote.
Supreme Court allows more private money in election campaigns - CNN.com

Me not there:crying:. People like me have no leverage. I wonder how all the concentrated leverage will work out.

I could be wrong, but I think that money leverage will gradually loose its power as the easy and quick information spread over the internet changes the electoral propaganda dynamics.

Good internet infrastructure supports more equal playing field. Easy access to information, better educated citizens lead to better informed voters.

One day, if voting is as easy as a click of a button on a computer screen, we may be in a different world. If we are all sufficiently educated to be able to grasp the consequences of new laws, have access to new proposals and can vote easily, then politicians will become obsolete. And everything else that goes with that. Erghhh, did I have too much vine?:wink:

 

[Doug_G]

Meanwhile, back in reality, the Canadian dollar continues to fall against the stronger greenback...

Hurray! My company sells our products in US dollars... this is a big deal for us.

My "theory" of a major threat to Tesla: nuclear armageddon. If the world ends, then there won't be a business case for it.

 

[gg_got_a_tesla]

Or a massive earthquake in the Bay Area :scared:

 

[richkae]

Yes, me too. I was just making a point in response to the US dollar collapsing. Canada has one of the best banking systems in the world (arguably THE best), a strong economy, low population with tons of natural resources, relatively low debt, and yet we are currently only 90 cents to the US dollar? Why? Because the world likes the US dollar above all others - it's as plain and simple as that. And despite all the criticism of Obama, the US deficit is down, the economy is growing, and he is getting their financial house in order - after a near catastrophe. Only history can judge presidents and I bet he will be judged much better in retrospect than he is being at present.

Fortunately, I also bought US stocks at par which gives me an extra 10% over their current price. Plus, I bought US dollars when were at $1.06 (I sold some at 94 cents - should have held longer!) but I still some since we do a lot of our shopping in the States. We also get the added bonus of shorter border line-ups! (Nexus is great too.)

The most important factor that affects the Canadian dollar is the price of oil. The other stuff is noise by comparison.

 

[Auzie]

Hurray! My company sells our products in US dollars... this is a big deal for us.

My "theory" of a major threat to Tesla: nuclear armageddon. If the world ends, then there won't be a business case for it.

Glad for your currency exchange gains, congratulations.

I am in a double bind situation regarding currency exchange. I hope for AUD to go down because I shorted some.:redface: So far that goes against me. That must be some instant karma for my unpatriotic trade. On the other side I get paid in AUD and prefer stronger currency, as I use it to buy USD. I see USD as a default world currency, with no competition on the horizon. Euro has too many structural problems to be able to compete.

My theory of a threat to Tesla (not major): More and more people choose to either not drive or not buy a car. Some form of sharing commutes may evolve in the future. When I commute for work, on very congested Sydney roads, almost all the cars are single drivers like me. Once it becomes easy to share the rides, that is likely to change.

 

[Julian Cox]

Possibly worth mentioning that the US economy has a lot to do with making selling and fixing and fulling ICE cars.

Part of the point of Tesla (and SCTY) is to terminally screw all that stuff up.

Cannot get too upset if Exxon and GM commentators are sad about the state of the economy.

The other point of TSLA is to help rebuild the US economy on a better and more US-export-centric foundation than importing Japanese cars and Saudi Oil.