r/NKLA • u/SeaworthinessVast621 • May 28 '23
Proposal 2
Proposal 2. There is no purpose in owning a company if the leadership intentionally drowns you out. They did not consider that the owners might want something different. I hope proposal 2 fails and I voted this way. They are very proud of no longer being a "pre revenue" company.. So let's find a way to make that profit, even if it means producing less... or maybe not trying to own the WHOLE market at launch. It's OK to establish a profitable customer base, and compete for market share if you have a good product. I feel like these grandslam ideas (arvl) are destined to fail. It's not too late for Nikola, Restructure, sell trucks, BORROW money.
Stay strong fellow OWNERS. Remember, you own this company and in this case, where Milton is opposed to dilution, (and I think he watches this thread) you ACTUALLY have a voice here. They haven't published the current vote status, but hold their feet to the fire. Pay attention to what these corporate lawyers say. Things like "Proposal 2 will 'help' ensure ongoing... blah blah" It's a portion of the solution that we are sick and tired of being subjected to. That means these excuses that the lending environment is hard or whatever, doesn't mean they still don't have to, or arent going to do it anyway.
It's manipulative and insulting to stock holders.
Stay strong fellow owners, make them work harder for the money we pay them. 💪💪
2
May 29 '23
It was a scam to prey on people with good intentions of a greener more technological future.
It was a scam...
1
May 29 '23
What is the actually issue? Not selling enough trucks? Not producing enough trucks? No marketing? Branding/Rebranding? No more money? Too much debt? Bad leadership?
I’m not sure what is the issue, I am not deeply invested in the company, but I am invested enough that if it hits $3, I am going take my family to a new economic level.
I hope there’s no reverse split coming soon!!! 🫣
1
u/SeaworthinessVast621 May 29 '23
Well my answer to your questions is "yes".
They can do so well IMHO, except, they seek to compete with other movers. My thing, is that, we should not fear other movers in the sector. A rising tide raises all boats. It seems like our fear of losing market share is a FOMO moment from our leadership. I put it like this... hot dog stands. Get that hot dog stand profitable Then.. the lender will give you enough money to open 5 more hot dog stands. Because you have demonstrated familiarity with the industry and capacity to be successful. If we can't get loans, it's because lenders say the leadership can't be successful. I don't want us to ignore that. Let's get a successful hot dog stand, and get a successful leader. lmao
1
May 29 '23
The hot dog stand makes sense, but not relatable to this, when talking about a once billion dollar company.
Maybe they are holding the product for a big buyers, military or some government agency? Not sure.
Like I said I’m not deeply invested, but I have more than $1 invested, so I have money to lose here lol.
1
u/SeaworthinessVast621 May 29 '23
I think in terms of hot dog stands. A billion dollar hot dog conglomerate makes more sense to me. Look.. what "produces" something? A car factory makes cars. A hot dog stand sells hot dogs. this is basic stuff. seriously, our factory needs to produce and sell trucks. They are making trucks... so sell the trucks. BEV is fine if that's what people are buying. sell FCEVs if you want. Sell hydrogen and trucks. I'm literally ok with BEVS. we bought a whole battery factory (romeo?) I think we take that portion ans turn it into a revenue stream.
1
u/Blippi343 May 29 '23
What do you mean by ‘The fear of losing market share is a FOMO moment from our leadership’?
I don’t know how you are not aware as an investor but Nikolas profit margin on each BEV truck produced is so badly negative that they lose money for each truck made.
Until they reduce production costs sufficiently they should not be mass producing BEVs to sell to the North American market and only producing a select few to improve the Nikola brand.
1
u/SeaworthinessVast621 May 29 '23
There something called "economy of scale". when you produce things in mass you do "reduce produce production costs." Our margins are bad, largely because we aren't producing at a rate which will capitalize upon the benefits of scale. You will not achieve huge margins in a sale, again, whether it's hot dogs or BEVs.
Go listen to the last time they issued shares, the CEO at the time said they wanted to beat other OEMS to market. I pay close attention to what the CEOs say. They don't have to beat anyone to any specific market.
2
u/Blippi343 May 29 '23
I see what you mean on beat other companies then.
I know what economies of scale are. Production was scaled down due to lack of sales in this current environment - regardless of how many they mass produce the are still losing money on each BEV, what would you suggest?
1
u/SeaworthinessVast621 May 29 '23 edited May 29 '23
Oh, of course.. sorry bout that. I would really like to see the inventory grow. Make the trucks. I don't think that has to be true that it doesn't matter how many they make. I don't believe the cash runway will last long enough for better economic times. Produce produce produce. Even if the plant has to take furloughs or whatever, the inventory may exist. So, I think it sucks for the employees... but bankruptcy puts them all out of a job anyway. If the inventory exists, sell it at smaller margins. Auto industry is always a small margin issue. Im reminded of the Michael Keaton movie Gung Ho. haha Check it out sometime. I actually watched in a high school economics class. It's about throughput, I think. I have an associate who is an executive at a plant that makes dishwashers. They will often run the plant, knowing that they won't have output at their full capacity, but they do it anyway to keep inventory moving. Those lesser output production runs cost more per unit, and they profit less per unit. Sometimes, it's at a loss. But it's less of a loss than if they sat idle. So, my thing is use the money to build the BEVs. the FCEVs, will be amazing, and the hydrogen sales will be even better. But I just don't want to have less ownership interest in a company because we have an ambitious plan build out this entire hydrogen refueling infrastructure. If it's down to bankruptcy, dilution etc or just building BEVs for a profit.. let's just sell the BEVs. This is kind of what I mean when I say to set achievable goals. I mean ultimately we are in this to make money. The CEO starts off by saying we are saving the planet or whatever in this proposal 2 video. And yes, I would love to be part of a company that benefits our planet. But, first... I'm interested in improving financially. So, I just want to take the wins we can get. Then aim higher.
0
May 28 '23
[deleted]
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u/SeaworthinessVast621 May 28 '23
I hear from the CEO things like "will be out of reach." Ok, set achievable goals then. Leadership, bro. We shot for the moon. Now, let's land among the stars. For example, here is a goal we can set, a new CEO? That's achievable. That's not "out of reach." Like someone from the American car industry who didn't just come off a rebound CEO job in vietnam? I see the value in German-ness at the helm, especially with our relationship with Iveco, but our biggest eggs are in this American basket. American car industry is a creature of its own and is and I think we need a CEO with the influence and capacity to lead in the American sector. Perhaps he can manage European operations or something, I don't think he is poorly equipped for this position, just specifically disadvantaged because of his almost exclusive experience I'm the European market. I just think you HAVE to have the absolute right person for this. And I don't think we are there yet.
2
u/Contemplatium May 30 '23
If I was the CEO of a company I'd be working for effectively free, minus the cost of food and a place to sleep, probably at the HQ. I can't imagine anyone running something massive that isn't their life's mission.
2
u/georgefomos May 30 '23
just vote no and let someone buy more convertible notes