By Wolf Richter: Some companies excel in getting their name into the media. “Buzz,” it’s called. The media plaster adulatory articles, pics, and videos all over the place. It doesn’t last forever, but it can go on for a long time before the media finally get disenchanted, and the whole thing turns sour.
Tesla – or rather CEO Elon Musk – used to excel at it. For years, every news outlet bombarded its readers or viewers with some fawning piece on Tesla whose electric cars would change the world into a better place. And if it wasn’t Tesla itself, it would be something like the Hyperloop or the Gigafactory or something.But now even the media has figured out that these $75,000+ small-batch production cars that few people can afford don’t amount even to a rounding error in global car sales. Manufacturing and selling a lot of cars at a profit is really, really hard. And making losses into the future as far as the eye can see, according to Musk himself, isn’t the ideal business model for an automaker.
Until that unfortunate turn of events, Tesla used the hype to extract a few billion dollars from investors. And it’s now busily burning through this money.
Media adulation is in part based on gravity-defying shares. In early August last year. Tesla shares traded at nearly $300, giving the company a market valuation of $37 billion. This is what media adulation can accomplish.




