Someone
9 hours ago
FRA: “As for HW3 owners who bought FSD, which basically turned out to be an interest free loan to Tesla for years, the automaker needs to offer free FSD transfer and a $10,000 discount on a car upgrade.
While this might sound like a lot”
It would add up to a lot of money for Tesla, but for customers? Some of these people paid $15.000 years ago for something that hasn’t been delivered, and now, they would be able to get $10,000 ‘back’, only if they commit to spending way more again, in the hope to eventually get what they bought years ago, or, more likely, in the hope of eventually being able to subscribe to get the features they already paid for years ago.
smusamashah
6 hours ago
Last line immediately reminded of Star Citizen which was first announced in 2012 and people are still paying for the promises/hypes the company keeps making.
orochimaaru
8 hours ago
Unless it’s in the purchase agreement, the wording on “fsd” may skirt the ethically questionable but legally acceptable line.
If the “fsd” wording is present in the purchase agreement, then Tesla owners have a class action lawsuit.
estearum
8 hours ago
Fine print in contracts can't override and totally negate specific offers made in marketing or the sales process.
If they said "$x gets you y", ran ads saying "$x gets you y", held press conferences saying "$x gets you y", then gave you an invoice showing you pay "$x for y", a backing contract saying "$x does not get you y" will not stand up in court.
So in addition to not being legally okay, it's obviously not "ethically questionable." Taking people's money and not delivering value you promised to them in exchange is bad.
bluGill
8 hours ago
Courts generally know that people don't read fine print, much less understand it. So if there is something courts see as a promise that people will see and understand they will tend to decide that when the fine print is in conflict with advertising they tend to assume that there is an intention to deceive and so they will punish you for it.
When reading the above, think: the opposition lawyers have incentive to present the case that way. Judges rarely stop them. Juries tend to accept the above presentation. Of course the other side has lawyers that will try to pick apart that argument. It is anyone's guess what the jury (and thus court) will decide.
There are many different legal systems in the world. The above is a US perspective. I cannot comment on other countries, just know that each is different. Even if Tesla wins in court in the US, they can still lose a lot of money in other countries that work different.
altcognito
8 hours ago
Since Tesla thinks they are clever by not running "ads", but instead relies on their own "viral marketing", they may find it rather upsetting when they go through discovery and there are heaps of internal memos talking about how it is important to market the idea that they are selling FSD forward, very directly misleading customers.
bluGill
8 hours ago
Just Elon's public statements should be upsetting.
JumpCrisscross
8 hours ago
> the wording on “fsd” may skirt the ethically questionable but legally acceptable line
Under U.S. federal law, perhaps.
That's where "Tesla’s current FSD expansion in international markets" gains salience. I doubt courts in "China and now Australia and New Zealand," or states with strong lemon laws [1], will let a manufacturer off the hook on a just-kidding clause.
[1] https://www.autosafety.org/in-new-lemonlaw-rankings-illinois...
NickC25
8 hours ago
>It would add up to a lot of money for Tesla, but for customers? Some of these people paid $15.000 years ago for something that hasn’t been delivered, and now, they would be able to get $10,000 ‘back’, only if they commit to spending way more again, in the hope to eventually get what they bought years ago, or, more likely, in the hope of eventually being able to subscribe to get the features they already paid for years ago.
Sounds like fraud.
Why is Musk allowed to be worth half a trillion dollars again? The guy can't help himself but lie and make deliberately misleading half-truth (at best) statements in investor meetings and presentations. Textbook fraud.
An ethical steward of capital he is not. We've gone through 4+ US presidential administrations with him as the CEO, and not once has he been effectively taken to task let alone held accountable for his bullshit.
code_for_monkey
7 hours ago
America is run by sham companies with con man ceos. Look at the president! He is one. The federal government does the kind of crypto pump and dumps you'd expect to see being run on snapchat. Of course no one is holding Musk's feet to the fire.
lern_too_spel
4 hours ago
It's not a pump and dump. It's a one-time sell-off of Trump Coins sold by the various Trump-affiliates organizations to companies in China that wanted to be excluded from tariffs and regulations and individuals who wanted to get Trump's ear at a dinner. It's a bribe. The secondary market value of the coins is exactly 0 because that money isn't going to Trump.
rapnie
7 hours ago
Saw a youtube video about the "grand achievements" of the Boring company in Las Vegas. If it were smell video, this project would smell like fraud.
immibis
7 hours ago
Because it's about, and always has been about, and always will be about, power and personal connection, not following the rules. Following the rules is one avenue to power - if the rules are enforced as written. But there are others, like bribing whoever is meant to enforce the rules and then breaking them. Another is to abuse rules, like setting up a string of companies that go bankrupt like crumple zones.
danans
7 hours ago
> Why is Musk allowed to be worth half a trillion dollars again? The guy can't help himself but lie and make deliberately misleading half-truth (at best) statements in investor meetings and presentations.
Perhaps you just answered your own question. But are you sure he's the only big tech CEO who does it, or does he just do it the best?
igor47
7 hours ago
It doesn't matter is he's the only one. He's the one we're talking about right now. Comments like yours read to me as "well everyone is doing it" and I really don't like how this serves to normalize bad action. Trump makes this rhetorical move all the time to justify his own corruption.
danans
5 hours ago
> Comments like yours read to me as "well everyone is doing it"
You are reading the literal meaning right: everyone is doing it.
But you are reading the intent wrong, which is to point out the extent of fraud and deception in boardrooms and markets.
sporkxrocket
7 hours ago
We created Sarbanes-Oxley after Enron and made it very difficult to go IPO, yet somehow TSLA is allowed to engage in blatant and obvious fraud. Musk lies in every shareholder meeting and is rewarded with hundreds of billions of dollars. I can't think of another case of financial fraud at this scale that is allowed to go completely unchecked.
JumpCrisscross
7 hours ago
> Why is Musk allowed to be worth half a trillion dollars again?
Because he founded a company that turned into PayPal, single-handedly launched the Western EV revolution and single-handedly secured American access to space. He's been a fuckup for the last few years. But he's "allowed" to be worth a lot because if he were doing what he's doing elsewhere, he'd facilitate a multi-trillion dollar wealth transfer from America to that place.
NickC25
3 hours ago
>Because he founded a company that turned into PayPal
No he didn't. He co-founded (with several other people) a company that merged with a company founded over a year before (that he had no involvement in) which eventually became PayPal. He didn't found jack shit on his own.
> single-handedly launched the Western EV revolution
Say what now? Are we talking about Tesla? You know Toyota had a working hybrid on the market in 2000, correct? The West was already well on its way to electric vehicles when Musk bought himself a board seat at Tesla.
>single-handedly secured American access to space.
Americans had not only already gone to space, but had landed on the moon over 2 years before Musk was born. Yes, you read that right - he was quite literally not even conceived when Americans had not only sent rockets into space, but literally went to and landed on a moon.
ben_w
5 hours ago
> But he's "allowed" to be worth a lot because if he were doing what he's doing elsewhere, he'd facilitate a multi-trillion dollar wealth transfer from America to that place.
I think this is the critical point. It's kinda the foundation of why all extremely rich people are "allowed" to get so rich.
For the rest, not so much. Partly:
Much as I was impressed with him successfully turning the disaster that was Eberhard and Tarpenning's era into a viable business, I would not describe "noticing and fixing Eberhard and Tarpenning's mistakes" as "single-handedly" launching anything. The booster version is the opposite side of the same wrong coin as those who insist Musk was worthless because Eberhard and Tarpenning came first.
SpaceX similarly, for all I'm impressed by how he's used his charisma and vision and drive to get people organised, he's definitely not "single handed" on this.
But also, my understanding is that for valuations such as Tesla's share price, the "what it should be" is usually based on what they're likely to return in the next 20 years or so. Tesla's stock price is obviously disconnected from the business returns, at best speculation based on what Musk might be able to organise people to do eventually, and given he has been, as you say, "a fuckup for the last few years", the expected return for the Musk group should be lower, not higher.
hbarka
7 hours ago
Where’s my $15k deposit?
JumpCrisscross
6 hours ago
> let’s complete what we cede fuck-it-up worth to: Single-handedly secured the outcome of an election because he’s worth a lot, then, he’s allowed to be DOGE and fuck more shit up just because he’s worth a lot
This strikes me as more of an indictment of money in politics.
Musk didn't need half a trillion dollars to influence the election and trash our government. He needed a few hundred million. We should be able to create a system where a man, even a very rich man, cannot rent the most powerful position in the history of humanity with a few hundred million dollars.
ceejayoz
6 hours ago
> But he's "allowed" to be worth a lot because if he were doing what he's doing elsewhere, he'd facilitate a multi-trillion dollar wealth transfer from America to that place.
That was the argument against Massachusetts taxing millionaires. Instead, it made double even the optimistic estimates. https://www.wgbh.org/news/politics/2024-05-21/millionaires-t...
Turns out there's usually a good reason people settle in a place.
(And the US government gets a big say if you try to move a critical national security asset out of the country, too.)
JumpCrisscross
6 hours ago
I’m not talking about taxes, I’m talking about raw wealth creation. Musk is rewarded in part so America stays attractive to the next potential Musk. We could double his taxes and that message would still hold.
ceejayoz
5 hours ago
He's "allowed to be worth half a trillion dollars" because we don't tax him enough.
JumpCrisscross
3 hours ago
> He's "allowed to be worth half a trillion dollars" because we don't tax him enough
On a technical level, sure. On a practical level, he'd still be fabulously rich and powerful, and the comment you're responding to would be asking why he's allowed to be worth hundreds of billions of whatever.
The problem isn't that Musk was "allowed" to become wealthy. It's that a trivial fraction of that wealth let him corrupt not only himself, but also his government.
s1artibartfast
4 hours ago
would a 499 billion cap make you happy? 100 Billion?
It would require substantial punitive taxes and penalties to prevent this accumulation. Would founders and investors still develop in the USA if their upside were curtailed? Would Musk Found spaceX if they were not allowed to profit from it?
Also, it is not as simple as taxing profits. Almost all of this value is simply equity in controlled companies. What is the mechanism here? If you are too successful, the government seizes your company? Dont you think that would be disruptive to investment and growth?
ceejayoz
3 hours ago
> Almost all of this value is simply equity in controlled companies.
Start by banning or curtailing these techniques they utilize to borrow against that equity or put it in tax advantaged accounts. https://www.propublica.org/article/billionaires-tax-avoidanc...
And perhaps a 1-2% wealth tax.
JumpCrisscross
3 hours ago
> And perhaps a 1-2% wealth tax
After $100mm. (I guess if you want to get the evangelicals on board you could do $39 or $390mm.)
s1artibartfast
2 hours ago
Do you think a 2% wealth tax would have prevented Musk's fortune?
ceejayoz
2 hours ago
No. That’s why I spitballed more than one idea.
s1artibartfast
25 minutes ago
So you were just spitballing things you dont even think will work? Neither of them seem even remotely close to sufficient, either alone or in combination in preventing another Musk. 2% seems irrelevant and he would probably be even richer if prevented from buying twitter due to the ban on collateralized lending.
If we are just spitballing, I think we should charge Billionaires a nickel every time they tie their shoes, and a dime on Sunday.
One option that might actually work is following a more feudal model, where the POTUS/Trump executes or disappears any oligarch that accumulates more than X amount, as assessed by the executive.
My actually preferred option is to simply get the money out of politics.
JumpCrisscross
3 hours ago
> Would founders and investors still develop in the USA if their upside were curtailed?
Yes. Unified consumer market. Incumbency. Deep and international access to risk capital.
China only has the first two. It's still got a thriving start-up ecosystem.
> Almost all of this value is simply equity in controlled companies. What is the mechanism here?
Selling equity. This is a theoretical question for e.g. a closely-held family business. It's not for a public or mature private company.
> the government seizes your company?
Guess who ushered in the administration that's embraced this option!
s1artibartfast
2 hours ago
OK, where would you place this hard wealth cap and company forfeiture limit? Should we confiscate everything over 100 billion? 100 million?
Do you actually endorse confiscation of companies, or are you just taking a reactionary copy cat stance?
NickC25
3 hours ago
>would a 499 billion cap make you happy?
Yeah. No single individual needs that much money. especially in this day and age where politicians are cheap as fuck to buy and the markets will reward any and all regulatory capture in the name of increasing short-term value of stock....while not giving a damn about the long-term ramifications of how it perverts our entire economic system.
>100 Billion?
That would too. Let me ask you - if you had $99 billion USD, would you whine that you don't have $100 billion, or would you, y'know, go out and use the money to enjoy your life and take care of people?
I know which I'd do. Hint: I'd be extremely fucking happy with what I'd have and I'd do all I could to spread the wealth around as far as I could. I wouldn't whine, I'd be overjoyed that I'd have more wealth than all but approximately 30 people on the planet.
The only "work" I'd do at that point is to figure out which diseases could likely be eradicated with enough money, and figure out how to give enough money to get it done. Gates, for all his faults, did pretty much just that. His money kicked malaria's ass.
>Also, it is not as simple as taxing profits. Almost all of this value is simply equity in controlled companies. What is the mechanism here? If you are too successful, the government seizes your company? Dont you think that would be disruptive to investment and growth?
It most certainly is quite easy.
If you have over a certain number in net worth (say, $100 billion), you can't take out loans against your stock portfolio - you have to sell stock or assets. The loans-against-portfolio system was designed to help middle class individuals buy homes, not to help centibillionaires buy $500mm yachts. If you are the sole founder of a multi-trillion dollar organization, your business expenses should cover quite literally anything you could ever need.
The mechanism isn't the government taking away a company, and it's certainly not disruptive to investment nor growth. In fact, as a founder myself, I'd take it as a badge of honor if the government came in and said "hey bro you are now worth a hundred billion dollars, you've won capitalism, go enjoy time with your friends and family". My investors, who invested small amounts of capital at a valuation in the low single digit millions, would be thrilled at a 100 billion dollar exit. That's nearly a 100,000x multiple ROI. If you, say, as an investor, dropped $10,000 on an investment. It gave you a return, after a decade, of 100,000x, or a billion dollars. Your reaction to that would be to complain that the government is discouraging and disrupting growth?
s1artibartfast
2 hours ago
> The loans-against-portfolio system was designed to help middle class individuals buy homes, not to help centibillionaires buy $500mm yachts. If you are the sole founder of a multi-trillion dollar organization, your business expenses should cover quite literally anything you could ever need.
This is nonsense. It wasn't "designed" to help the middle class. Portfolios are clear collateral assets and a natural backstop that doesnt need a "designer". It will arise in any financial system that allows free contracting and doesnt explicitly prohibit it.
> In fact, as a founder myself, I'd take it as a badge of honor if the government came in and said "hey bro you are now worth a hundred billion dollars, you've won capitalism, go enjoy time with your friends and family...".
This is such a contrived example it isnt worth discussing. The realistic outcome is the government taking it and giving you nothing. We aren't discussing the government "buying" anything.
suckler
7 hours ago
Paypal kicked Musk out for being annoying and useless and wanting to implement bad ideas. He bought Tesla after it already put out its fan-favorite car. To say he contributed anything is questionable, and to say anything he has done is revolutionary is laughable.
pas
3 hours ago
this is a bad framing. he did put in a lot of work, he did mercilessly churn through engineers to get results, cajoled various power-brokers to get subsidies and financing necessary to keep on keeping on.
he is the ultimate right place right time person, managed to turn innovative historically doomed-to-fail ventures into very highly valued mature(ish) businesses.
it's unlikely that someone without his micromanagerial madness could have done these. (and of course in a better world he would have gotten help, employees wouldn't have been fired on a whim, and the market wouldn't reward liars. not to mention that ideally the market would price in the consequences of enriching someone with so loose morals.)
lotsofpulp
7 hours ago
Repeated success along multiple businesses is an objective measure. There is a chance he lucked into paypal, tesla, spaceX, and starlink, but it seems reasonable to assume he is contributing (and detracting simultaneously) something to score 4 successess, even if that is just hiring the right people and making big bets.
These are also hard businesses, dealing with physics, chemistry, and regulations. Unlike SaaS businesses one spins up on cloud services. Which lends some more credence to not just being lucky.
Obviously, he has a reprehensible agenda, but there is clearly a case to be made about his ability to execute.
danaris
7 hours ago
> Why is Musk allowed to be worth half a trillion dollars again?
Because the US abandoned a number of years ago the idea that the law should apply equally to everyone. At least since the Reagan years, and to an increasing degree recently, "Greed is Good" has become the economic motto, and net worth is treated as if it's synonymous with one's moral worth.
This is all part and parcel of the devaluation of ethics that has led to a corrupt president whose election has serious questions around it wantonly flouting the law and treating the country like his own personal playground.
ModernMech
5 hours ago
> Why is Musk allowed to be worth half a trillion dollars again? ... An ethical steward of capital he is not.
You answered your question! Capitalism does not optimize for ethical stewards, and has nothing at all to say about morality or ethics. If a scam is profitable, capitalism says "that's okay!". Doesn't matter if it's illegal, immoral, amoral, destroys the environment, or even decapitates people leaving their head bouncing down the highway.
That's why Elon Musk is allowed to be worth half a trillion dollars. The system optimized for it; fraud, deception, and lawbreaking is a competitive advantage under capitalism. Someone has to be worth the most, and under this system, that person is going to be whomever is the most eager to wield his considerable wealth and power to commit crimes and defraud people.
mrtksn
8 hours ago
It’s a cult, in cults people don’t demand refunds from the messiah. IRL they ask what else I can contribute to the church to fix that because it mist be their fault that the prophesies didn’t come true. In the end it’s not a problem if parties choose not to make a problem if it.
In recent years the leader of a cult in Turkey known for being filthy rich died and when cult split the new factions summoned the believers to re-do their inauguration ritual, which involves money collecting, since the old one expired within the death of the leader. And they went and did that, because although its not the members that are rich they still benefit from being in the community and the business connections.
Tesla has a similar thing, they are on a mission and many make money from being part of the community as they collect referrals, make content and sell accessories. Even if not doing any of that they ysually have Tesla shares and even if that’s not the case they want to keep the value of their vehicle high. Also in comes with the emotional baggage of having told everyone how their tesla drives autonomously etc.
gipp
8 hours ago
That probably describes some corners of Tesla's market, but 99% of people buying Teslas and FSD are doing it because it is (was?) a cool car with a potentially cool feature. You're letting the wildly unrepresentative sample of "loud people on the Internet" distort your perception of the world at large.
mrtksn
7 hours ago
Those who don’t care, wouldn’t care anyway. If they still have the car the can just sell it, if they don’t have the car its irrelevant.
Most people just don’t want new troubles in their lives, its juts money long gone.
IAmBroom
8 hours ago
Elon has eroded, even exploded, a lot of that cult. I've seen multiple Teslas in the wild with apologetic "I bought this before I knew he was crazy" bumperstickers.
stronglikedan
7 hours ago
> "I bought this before I knew he was crazy" bumperstickers
how ironic
CaptainOfCoit
9 hours ago
Yeah, sounds completely backwards, how could anyone accept that? "Yeah, sure, you lied to me about it before, but for my next purchase I'll get it slightly cheaper, sounds great"
cjrp
9 hours ago
I think it would work for the fully-indoctrinated customers, but what % of their total base is that? 5%?
CaptainOfCoit
8 hours ago
Since 2024 or so I think every single new customer must be one of those, as no one else seems to want to buy a Tesla.
boringg
9 hours ago
I think it is much higher for tesla.
shagmin
6 hours ago
Probably a significant difference for Cybertrucks compared to cars.
cjrp
8 hours ago
Hmm I'm not so sure, admittedly based on anecdata. In the UK I know 10+ people who drive Teslas, and none of them are fanboys in any way. It was just the cheapest EV with decent range when they bought it.
boringg
8 hours ago
I'd say the UK isn't representative of the Tesla market is my guess. Ive talked to a bunch of friends who own them and are the antethesis of red pilled. They lament that the competition is still not there at all and that their Teslas are a much better experience then the rest of the market. Take it for what its worth - anecdotal.
Would they buy them again? Probably not but thats because of politics.
chronci739
8 hours ago
> Would they buy them again? Probably not but thats because of politics.
That’s the article’s point.
Politics, FSD overpromises, Elon, whatever the reason.
Tesla deliveries are down and people aren’t coming back.
ToucanLoucan
8 hours ago
Also the QA issues.
I can't fathom wanting a Tesla unless the politics are not merely a turn-off for you, but you want to support them directly.
boringg
4 hours ago
On the politics things -- thats only one side of the population. The other side would be more open to purchasing it. Almost nets out except that whole ability to pay piece.
LaSombra
5 hours ago
What does it mean "...the competition is still not there at all..."?
What are these features that tie people to Teslas that the competition is unable to deliver on?
lotsofpulp
5 hours ago
In the US:
1) sufficiently long track record of reliability (I might consider Ford and Rivian now)
2) free remote start and unlock
3) camera recordings - how is this not standard in all cars by now?
4) not having to buy via dealership (this is worth a lot to me). Bought a Tesla on my couch in 15 minutes and picking it up took 15 minutes. Dealerships take hours and hours, and try to upsell you.
5) $35k to $40k price point - if BYD were to come to America, I would drop Tesla in a heartbeat
boringg
4 hours ago
The camera recordings thing to me BLOWS MY MIND! Also for competitors such as Volvo -- only finally having a functional user experience for apple or google. They are years behind on the trivial matters (that people care about).
I don't think Ford is in the running.
FSD is pretty sweet especially compared to volvo's woefully poor autopilot efforts.
LightBug1
5 hours ago
I know about 5 similarly minded people, all but 1 have switched to BYD ... and that's probably 99% due to the length of their lease.
LightBug1
9 hours ago
At this stage, I imagine them mostly wearing red gag balls ...
Why else would you put up with this nonsense?
If nothing else, Musk is a Svengali extraordinaire ...
slowmovintarget
7 hours ago
The Star Citizen model.
drcongo
8 hours ago
$15k?! I've got a bridge they could buy for just $10k.