Tesla Tumbles as Outlook Cut, Loan May Need to Be Amended

It also didn't help that there's an additional offering of 4.3 million shares.

 

...not too much surprise if you follow John Petersen at AltEnergyStocks.com. He had laid out the Telsa case a few months ago. I don't invest in stocks, but I do read the posts on that site.

 

Some supplier quality issues. Tesla makes the right decision, protecting the quality of the introductory product vs. meeting "analysts" short term expectations.

 

Problem is, insufficient deliveries within a certain time could mean that Tesla could go under. They could have insufficient cash flow.

This is alluded to at Tesla CEO: future hinges on increasing Model S production | PriusChat.

I don't think they can legally book the entire car's selling price as revenue until it's actually delivered.

Remember, Tesla has not turned a single profit. Take a look at the direction of revenue and net income at TSLA Income Statement | Tesla Motors, Inc. Stock - Yahoo! Finance and TSLA Income Statement | Tesla Motors, Inc. Stock - Yahoo! Finance.

Tesla's making mighty big promises and spending a lot of money. Opening stores and keeping them open has got to be costly. Meanwhile, there's little incoming revenue.

 

Here are some links to the stuff I've been hearing:

EVs, Batteries and Tales From The Valley of Death | Alternative Energy Stocks

While Tesla is Heading into the Valley of Death, Kandi has Already Crossed | Alternative Energy Stocks

I don't post this stuff as soon as I hear it since I do not want to be overly EV skeptic. John Petersen, though EV-skeptic, is a huge Prius Hybrid fan, by the way.

 

You confuse Tesla investors with stock market croupiers.

As the Tesla article noted, Tesla foresaw no problem in raising additional funds via its investors but was legally bound to inform US government of need to do so and possible though not likely need to extend the loan.

You need to realize Musk is much smarter than you and has successfully built three manufacturing companies, Solar World, SpaceX and Tesla to address need for solar power, space exploration and non-fossil fuel transportation.

 

Tesla is doing a better job delivering on its promises than most well established auto companies. The guidance numbers given to investors are just estimates, not promises.
All companies make adjustments to those numbers. Usually not that big, but when it is a start up company that big of an adjustment is not all that rare.
The stock price over the last couple of weeks has gone up about 10%. So a 10% fall doesn't bother me much, as an investor.

Musk is putting customers (quality) ahead of short term stock price. I wish more companies would do the same!

 

Again you confuse the stock market casino self induced gyrations with anything business related. There is no connection.

Tesla will have no problem raising the addition funds from investors (not to be confused with the stock market). Many appear to have read the headlines but not the article.

It is interesting how Musk's success with SpaceX also increases confidence in his other manufacturing ventures, Solar World and Tesla.

SpaceX, Solar World and Tesla are election issues. All three under hard competitive pressure from non-US competitors and why all three are great examples of why US government should be investing in them. Investments in US future supported by one side, opposed the other.

 

spwolf Tesla has already addressed both the press, it's investors and buyers.
If you choose to ignore their response and pretend it wasn't made their is not much that can be done.

 

I have read that it was due to a part shortage. Do we know which part is having shortage (or quality issue)?

 

From what Tesla has said, there were a few cases where suppliers either couldn't keep up with the numbers, or were not delivering the quality.
One specific example was the supplier for the door handles. Tesla wasn't happy with the quality and the supplier was having trouble fixing it to Tesla's satisfaction.

 

Ok, door handles are unique and cool. Just wondering if the critical components (motor, battery) were the cause.

 

"Only way to grow publicly traded company is to constantly meet or exceed investor/analyst expectations." This works in the short term. Reducing costs & quality to increase the margin isn't sustainable. Analysts said of one corporation that they weren't profitable enough. The solution was to eliminate the pension plan, terminate employees in the US & other countries, and hire subcontractors to do the work. Before all the terminations take effect the corporation had the best year in its long history. The subcontractors will provide a lower level of service but it will be "good enough". Are you a vendor trying to get paid? Talk to Peggy. Are you a customer with a billing problem? Talk to Peggy. Are you trying to place an order? Talk to Peggy. Got a problem with the product? Talk to Peggy. Ask those people if "good enough" is good enough & you'll probably get a different answer.

GM & Chrysler drove for mediocrity. If it weren't for 3 government bailouts they would be history.

Musk believes building a quality product is a way to attract customers. I hope so. We've already got enough crap in our markets.

I don't know what his supply chain problems are. The only part I heard about was the single piece aluminum trim.

One quick way for the Street to make a buck is to sell a company's stock short, hype negative news to induce panic selling, then buy up the stock at the bargain basement price. In this situation nothing has changed at the company and there is no rational or logical explanation for the price swings. it's all emotion. It happens in other markets as well.

 

i read an article on musk. he created designs that have never been done before and has to go to suppliers and teach them how to do it or help correct their problems. he is also inspecting each car personally because he can't trust his own people not to overlook imperfections.

 

Imagine if Ford/Toyota/VW were making their first production car with first time vendors. Imagine the petty critics saying "They can't even get the door handles right". Imagine making that first impression with the public was vital to future sales. Imagine reality.

Tesla did the right thing for quality product and long term business success.

Imagine.

 

If Ford, GM, Toyota, etc were a month behind schedule no one would bat an eye. That is essentially where Tesla is, their ramp up is about a month behind schedule. Instead of delivering 500 cars by the end of this month and 5000 by the end of Dec, it looks like the will have 500 delivered by the end of October and 5000 by the end of January.

Again, I am happy with a company that values quality over short term investors.