Where did you get this information from?
On Tuesdays third quarter earnings call, Musk said that Tesla is considering building a lithium-ion cell production facility a Giga Factory that would make battery cells for Teslas battery packs. The plant, which Tesla would likely develop with partners in North America, would be a giant facility, something comparable to all lithium ion production in the world, in one factory.
Now, lets talk about "flaming battery" BS. There were 5 causes connected to Model S last year (sometimes erroneously). Let me break them down for you:
1) 2 cars were impaled with large metal debris on a highway. In the regular gas car - that could have resulted in even worse fires, or even could have ended up with driver being impaled! Model S protected the drivers with armor plate and battery and both were not injured.
2) One car in Mexico went through 2 concrete walls at 120 MPH (!), then ended up hitting a 2 feet wide tree. It is absolutely AMAZING that the driver survived that kind of crash. In a regular car he would have no chance at all.
3) There was a fire in the faulty house wiring where Tesla was charging. This fire was not related to Tesla at all. This was a case of Tesla standing in a garage that just happened to catch fire.
4) Fire in Toronto. Yes, this time Model S actually did catch fire while sitting and doing nothing. BUT - the fire did not originate in the main battery or the charging system. It originated in cargo compartment - thus it could have been CARGO catching fire and then spreading onto Model S. Still under investigation.
All in all - the "flaming Tesla" is a completely invented issue. During the time 5 Teslas burned (in 4 causes due to no fault of Tesla, 1 still unclear) - about 240,000 gas cars burned!
I don't understand something. In regards to their latest financials, I keep seeing articles referring to non-GAAP (generally accepted accounting principles) numbers as well as GAAP numbers (they lost money again).
I don't think I have ever seen articles about a company's financial reports so consistently playing up the non-GAAP numbers like what has been done with Tesla. A more cynical person might think there are a lot of people out there trying to paint Tesla in an overly rosy light.
-KeithP
Worthless reporting is not limited to Tesla.I don't think I have ever seen articles about a company's financial reports so consistently playing up the non-GAAP numbers like what has been done with Tesla.
Worthless reporting is not limited to Tesla.
Back in 2000, they said PE ratios on stocks don't matter. They said dividends don't matter. They said profits don't matter. Almost nobody was pointing out how overbought the NASDAQ was in 2000. Why was Yahoo worth more than New Zealand's entire stock exchange? Why were people coming up with really stupid metrics based on page views and clicks rather than dollars earned? Using non-GAAP earnings is just another example of trying to justify an extremely overpriced stock. These are the same idiots who lost their life savings buying things like pets.com. Since Tesla has no PE ratio due to lack of earnings, try comparing it to other car companies using the Price to Sales and Price to Book.
Honda's price to sales is 0.45, Tesla is 15.10 (33x as expensive)
Honda's price to book is 0.89, Tesla is 45.62 (51x as expensive)
You could say Tesla is better than Honda, but is it 33x better?
We saw the same bullshit during the housing boom. Nobody in the media pointed out that real estate's true value is based on cash flow. You generally don't buy a rental property then lease it out for less than the mortgage payment. Add in maintenance and taxes on top of that. Of course, you don't want to only break even. You could get about 5% on a government bond during the housing boom, so the total ROI for a piece of real estate should be at least 10% per year to justify the amount of risk and effort involved. This is so plainly obvious. Why did nobody bring it up? Why did nobody in the media talk about things like securitization of NINJA loans? Why did nobody mention that real estate prices are directly tied to interest rates and how much money people can borrow? All of the information was out in the open and the media chose to ignore it. They intentionally screwed millions of people.
I'm happy for the people who made money on Tesla's stock, but you guys seriously need to get out right now. You don't want to be stuck holding the bag on this one, and it really looks like the market is about to crash (not just Tesla). As you can see in my sig, I made some stock predictions in September. I watched the gold and silver stocks go down until taper was announce in mid December, and they've been rising since then. I decided to jump in with real money, and my gold stocks are up about 40% since December. At the same time, interest rates have stopped increasing since taper was announced. It's very clear what the market is doing here. People are getting out of equities and into gold or bonds. George Soros just bet 1.3 billion on the market crashing, and he's generally right about things like that.
Is there still time to dump Tesla stock?
http://www.marketwatch.com/story/morgan-stanley-raises-tesla-price-target-to-320-2014-02-25
Slapping myself for writing $150 calls against my position back when it was $120.
I am tempted to take a short position right now though.
One fueled by hype, the other by cocaine.
Once Elon Musk runs out of suitcases full of pure, uncut Columbian hype, his unprofitable company is going to have issues.
They have a huge waiting list, and every one is sold before they leave the production line.
The base model S is $61K (before the tax credits) with a 3 month wait
http://www.teslamotors.com/models/design