Letter from Chip Northrup

Are Teslas Just a Status Symbol?

Owning a Tesla has been fashionable in liberal circles for years, a status symbol of virtue-signaling: “I’m helping the environment every time I drive faster than you do!” That’s one virtue I can signal differently.

Every year, I put more miles on my bike than I do on my car. Based on the amount I drive, it would only take 10 years to save enough fuel to offset the energy cost of mining the cobalt, lithium and copper that goes into the Tesla’s batteries.

Those formerly fashionable Tesla owners are now driving “SwastiKars,” the object of derision from incensed liberals like themselves. And me. Teslas have the worst safety record, the highest insurance rates and the fastest depreciation. If they don’t self-immolate at the showroom, Tesla itself may go up in flames based on its latest financial statements.

Tesla shares sell for approximately 65 times earnings (down recently from 115), meaning, in Warren-Buffet-Speak, it would take 65 years to get your money back on the share, if Tesla paid out all of its earnings in dividends, which it doesn’t. Toyota, which is far larger than Tesla, with higher earnings and better products, has a stock price about 1/8th the valuation of Tesla.

With sales off by 50 percent in China, 45 percent in Europe and 40 percent in the U.S., Tesla’s stock price has further to fall. Since SpaceX is collateralized with Tesla stock, it could go into receivership before it blows up again over the Bahamas.

If you want to help the environment, buy a used car. Or ride an eBike. They’re all the rage among avant-garde lefties right here in River City. Or so I’m told.

Chip Northrup
Cooperstown