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Musk’s Billionaire Problems

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In 2017, California had their worst year ever in wildfires. Over 9,000 fires destroyed hundreds of homes, fires reaching across 1.2 million acres along with claimed losses over $9 billion dollars and over 46 deaths. Yet, The Boring Company may be contributing to the madness with their new flamethrower model called, “Not-A-Flamethrower” (Elon Musk being the founder of the company). Is this necessarily a good business idea in the name of those who lost their homes and lives to the wildfires disasters?

The Boring Company sold their complete inventory of 20,000 flamethrowers off the shelves, making a whopping $10 million dollars. Yet, investors aren’t pleased with the poor business decision and tastefulness of the remarks made by Musk this year-or ever at that matter.

While not only marketing toward millennials, Elon Musk tweets below with a picture of a young couple with a baby stroller,

With TSLA’s recent autopilot crashes (though assumed by the fault of the dead drivers), Musk’s comments towards business mogul, Warren Buffet and journalists, investors see Elon a little too confident and is not putting up a good business face for the company. How will this new invention improve the quality of the company and not a mere show for rich “boy toys”? The Boring Company donated $10,000 to the repairs of wildfire damages in lieu of their flamethrower production. Musk backed up his statement with two snapshots of the terms and conditions for their Not-A-Flamethrower model,

With TSLA (Tesla, $321.10) known for generating world-renowned inventions, they have a many competitors and a spend more than 60% of their profit on research and development, over 80% in SAG costs as well as a negative cashflow of over -136 million dollars. The Not-A-Flamethrower is another great invention, but shareholders ask themselves if this is a long-term lucrative product that will continue profiting sales in the next 10 years?

 

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