Very little happened this week that wise TSLA shareholders didn’t anticipate, hence the non-feverish pace here at TeslaMondo. Been vacationing in Burlington, VT also. Yes, Tesla had another “record” quarter, but “records” happen a lot with fast-growing companies.
The world’s wrongest analyst, John Lovallo at BOM, said nothing about Tesla this week. Instead, BOM colleague John Murphy issued a grudgingly positive statement and raised the firm’s TSLA price target from stupid to ridiculous. This article says Lovallo no longer covers Tesla. Oh, how juicy! Ah, but Lovallo and Murphy have shared Tesla coverage in the past. It’s unlikely Lovallo was removed. He probably just strategically sat this episode out to avoid looking like a possum’s pecker.
Anyway, this week saw much analyst chatter and new investors climbing aboard. Some shorts undoubtedly covered. Pretty boring developments. Nice, but boring. A contrarian CNBC piece said Model X might flop for lack of a roof rack. People might cancel their orders, you see, when they discover they can’t carry stuff up there. Cancelled orders could hobble Tesla’s cash cavalry that’s supposed to rescue the company from certain death late this year. Couple problems with that thesis. First, Tesla has never shown a roof rack on any Model X image, so people who ordered an X probably aren’t expecting a rack. They want a high-performance crossover from a novel brand with massive cachet. Second, racks are so passé that if you drive to a Mercedes, Audi or BMW dealer, you probably won’t find a single SUV with a complete roof rack, meaning front-to-back rails and crossbars.
But 10 years ago, every SUV had a full rack. Why the change? Roof racks are silly. They cost money and do nothing for most consumers except trap snow and ice, create wind drag and make wind noise. Consumers and automakers have finally acknowledged that most people do not have an outdoorsy, adventurous, spontaneous, active, clothing-optional, road-tripping lifestyle that overwhelms the internal storage capacity of a mid-size SUV. People simply drive to work, the grocery store, the mall, the school, and home again. No need for a roof rack, or tow hitch, or brushguard, or skid plate. How sad indeed. So if the Model X does stay flat and smooth up top, it might force women — allegedly the Model X target buyers — to see themselves as sexy even without nice racks. It’s about time.