1. Musk isn't a "retard", he's very intelligent, it's accurate to say he's very arrogant. However, so are most self-made billionaires. Ellison, Gates, Branson, Buffett (boy-howdy), etc. etc. are all full of themselves, because you don't get to that level without it. Inasmuch as it's a personality flaw, it's also a well of confidence and a strength.
2. I've not heard Musk say anything derogatory about the Prius, that's pure, unsubstantiated speculation.
3. The Li-Ion cells they use aren't "the cheapest they could find", they're less expensive because the process to make them is simpler as well as being more advanced. Also, because of the volume they're using they get a huge production discount. This is all detailed
in their prospectus and
their press release on their partnership with Panasonic.
4.
Mercedes and GM are both entering agreements with Tesla to license their EV technology. That's more money in their coffers, profits that will likely surpass what they make via production. Before long, in 2014 actually, you'll see Merc EVs with badging that says "powered by Tesla", and
GM will follow soon after.
The bottom line: Betting against Tesla right now is like betting against Apple right after the iPod hit the market. "That's stupid and expensive, who would want one of those?" (I also seem to remember those having early battery issues too... Hmm...) Wow, what most folks wouldn't do to go back and buy 50,000 shares of AAPL at that time. Right?
Oh, and Teslas are safe
r because they're designed to completely shield occupants in case something goes wrong (best score of any vehicle ever crash tested). In fact, in every case no one was harmed at all. That's saying something in the second accident in particular, since the car went airborne at a high rate of speed and took out a tree and a wall. The third fire probably wouldn't have even happened at all if the guy hadn't kept driving for 45 minutes after running over the tow hook and the car told him there were serious problems that required service. It's the same as someone continuing to drive a regular car after the check engine light comes on.
You want to see ICEs continue and I get that, because I do too, but EVs are here and they're going to become more prominent, that's just reality. Trying to make the Model S out to be severely flawed because of that bias only clouds your own perception, it doesn't actually harm Tesla one bit. It's like the people who sat around wondering what happened to Sony and the Walkman after Apple crushed their market share. "Where did they come from?"