Tesla Model 3

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morekaos said:
"Greg and the team deserve a lot of credit for building an all-new manufacturing organization from the ground up and for making Model S and Model X a reality," CEO Elon Musk said in a statement. "We're confident that with the strength of the team, high-quality manufacturing at Tesla will continue."
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High quality?  LOL

Don't ever buy a Tesla out of warranty people, repairs needed in a Tesla is twice as much as GM and Ford cars on average.

http://www.reuters.com/article/us-tesla-warranty-idUSKCN0XO1M3
High warranty costs reflect Tesla?s struggle with quality

While Tesla has trimmed its average warranty repair cost per premium electric vehicle since 2014, it still spends more than twice as much as General Motors Co (GM.N) and Ford Motor Co (F.N), according to a Reuters analysis of company data.
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Been saying this for awhile...

Tesla is a hot mess?there is no path to profitability

http://www.cnbc.com/2016/05/03/tesla-stock-is-not-a-buy-no-matter-what-earnings-say-commentary.html

First, the Model 3. This was Tesla's play for an "affordable" electric car but it appears to be affordable for everyone EXCEPT Tesla.

Tesla loses more than $4,000 on each of its high-end Model S electric sedans; and that model's cost is between $70 and $108k. With margins like that, one has to assume a $35k Model 3 can't be the answer to solving Tesla's red ink.

Tesla's income statement reveals the company is hemorrhaging cash at a robust clip. Furthermore, according to TheStreet Ratings, they have a net profit margin of -26.38 percent and a quick ratio of 0.49, which means they have 49 cents in available cash to pay every $1 of current liabilities.

Wall Street doubts Tesla can hit aggressive targets
[url]http://www.cnbc.com/2016/05/05/wall-street-doubts-tesla-can-hit-aggressive-targets-.html[/url]

In fact, among seven analyst reports analyzing Tesla's updated guidance for vehicle production, CNBC found no firms on Wall Street expecting Tesla to even reach 400,000 in annual sales in 2018.

One of the most aggressive forecasts comes from Deutsche Bank, which is modeling Tesla to sell 355,000 electric vehicles in 2018, well below the company's production target of 500,000.

 
morekaos said:
From all places the LA Times.  Read this article in its entirety...the emperor has less clothes.

http://www.latimes.com/business/la-fi-hy-musk-subsidies-20150531-story.html

Elon Musk's growing empire is fueled by $4.9 billion in government subsidies

Los Angeles entrepreneur Elon Musk has built a multibillion-dollar fortune running companies that make electric cars, sell solar panels and launch rockets into space.

And he's built those companies with the help of billions in government subsidies.


Tesla Motors Inc., SolarCity Corp. and Space Exploration Technologies Corp., known as SpaceX, together have benefited from an estimated $4.9 billion in government support, according to data compiled by The Times. The figure underscores a common theme running through his emerging empire: a public-private financing model underpinning long-shot start-ups.

"He definitely goes where there is government money," said Dan Dolev, an analyst at Jefferies Equity Research. "That's a great strategy, but the government will cut you off one day."
...But public subsidies for Musk's companies stand out both for the amount, relative to the size of the companies, and for their dependence on them.

"Government support is a theme of all three of these companies, and without it none of them would be around," said Mark Spiegel, a hedge fund manager for Stanphyl Capital Partners who is shorting Tesla's stock, a bet that pays off if Tesla shares fall.
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More Government subsidized fantasies brought to you by Mr. Musk.  "Pay no attention to that man behind the curtain..I am the great and powerful Wizard of Oz!!!"

SolarCity plunges 15% on big loss, guidance

SolarCity shares plunged on Monday as the company posted a wider-than-expected quarterly loss and gave disappointing guidance.

The solar power company founded by entrepreneur Elon Musk reported an adjusted first-quarter loss of $2.56 per share, versus expectations of a $2.32 per share loss, according to Thomson Reuters. Revenue came in at $123 million, compared with expectations for $110 million.

http://www.cnbc.com/2016/05/09/solarcity-plunges-15-on-big-loss-guidance.html
https://youtu.be/ubIpoPjBUds
 
Man Sues Tesla Over 'Rushed' Model X, Cites Design and Software Flaws

A California man who owns three Teslas is suing under the state?s ?Lemon Law,? claiming the car maker must refund him $161,970 because its latest model has safety and feature flaws that can?t be fixed.

In a lawsuit filed this month in state court, Barrett Lyon, a 38 year old Internet entrepreneur, claims the doors of his Tesla Model X ( TSLA -1.68% )  malfunction, and have smashed into his wife and into parked cars.

He also says software for the car?s auto-park feature doesn?t work properly, and shared a video with Fortune (see further below) that shows the car failing to drive autonomously into his garage, but stopping short instead.

http://fortune.com/2016/05/31/telsa-modelx-lawsuit/

Careful when you rush such a sophisticated piece of machinery.
 
My house of cards is crumbling so I think I'll just push them all together and make one big pile....or My companies are so good that the only obviously prudent use of capital would be to buy my other companies!!! The level of hubris and conceit that is showing here is astonishing.

SolarCity stock soars 15% on $2.8 billion Tesla bid; TSLA plunges


Tesla Motors said on Tuesday it would bid $2.8 billion to buy SolarCity, sending the solar energy company's shares soaring.

SolarCity shares popped more than 15 percent after-hours on the offer of $26.50 per share to $28.50 per share, while Tesla shares dropped as much as 10 percent, trading below $200 per share for the first time since March.

SolarCity's controlling shareholder, Elon Musk, is also the CEO of electric car company Tesla. The two sets of shareholders will vote on the merger independent of Musk after a due diligence process, the Tesla CEO said.

http://www.cnbc.com/2016/06/21/tesla-makes-offer-to-acquire-solarcity.html
 
[size=12pt]Chanos: ?Brazen' SolarCity deal is ?corporate governance at its worst?[/size]

"SolarCity, whose bonds were yielding 20 percent yesterday, is a company headed toward financial distress. It is burning hundreds of millions in cash every quarter, a burden that now Tesla shareholders will have to bear, at a total cost of over $8 billion," said Chanos, who has previously disclosed bets against both firms.

"And if you don't want to believe me, consider this: The combined market drop in the value of both companies is more than the equity value of the deal itself ? which means that Tesla shareholders think SolarCity shares are essentially worthless," Chanos said. "Finally, it is hard for me to believe that this deal was not being contemplated when Tesla, and Mr. (Elon) Musk himself, sold shares just a few weeks ago."


http://www.cnbc.com/2016/06/22/chanos-bail-out-of-solarcity-a-corporate-governance-at-its-worst.html
 
I think its interesting to note that they refer to Tesla as a "struggling" car company now.

What is Elon Musk working on? Tesla founder to reveal second 'top secret master plan' for his struggling electric car company

Elon Musk sent a Tweet saying he is working on a second master plan
He also said he hopes to reveal more details of the plan later this week
Last month the first fatal crash in a Tesla while on autopilot was revealed
Tesla stock down nearly 15 per cent since late April, shipments have fallen
 
Feet of Clay

Elon Musk?s pedestal is crumbling, exposing Tesla risks

The facts at hand show a much more precarious position: The company is failing to reach its own expectations while adding to future projections and attempting a risky, potentially unwise acquisition, all while under federal investigation for one of its most prominent technological advances. Yet the company and its CEO act as if they are made of Teflon, and don?t need to have the types of checks and balances that corporations use to avoid disaster.

http://www.marketwatch.com/story/elon-musks-pedestal-is-crumbling-exposing-tesla-risks-2016-07-11
 
Make sure you bring your fire extinguisher when you show up for your test drive

Tesla Model S bursts into flames during test drive in France

DETROIT - A Tesla Model S spontaneously burst into flames in Monday while on a test drive in France, according to French media reports.

The car was being driven by a couple and a representative of Tesla as part of an event hosted by the California electric carmaker. The Model S sedan was cruising on the boulevard d'Aritxague in Bayonne in the southwest of France when the incident occurred.

The driver of the car told French media outlet Sud Ouest that after a little acceleration there was a warning noise in the car, at which point the Tesla host told the driver to pull over so she could call Tesla about the issue before continuing the test drive.

The trio then saw white smoke, and exited the vehicle. The driver, identified only as Nicolas, said the car was engulfed in flames in less than a minute and totally destroyed within five minutes.

http://www.mlive.com/auto/index.ssf/2016/08/reports_tesla_model_s_bursts_i.html
 
Now take Faber with a grain of salt but someone did say it

Marc Faber: Tesla shares are going to $0

Marc Faber, editor of the Gloom, Boom & Doom Report, is well-known his perennially bearish take on the overall market. But there are also some specific stocks of which the investor known as "Dr. Doom" takes a particularly dim view ? and right now, prime among those is Tesla.

"What they produce can be produced by Mercedes, BMW, Toyota, Nissan. Anybody in the world can make it eventually, at much lower cost and probably much more efficiently," Faber said Monday on CNBC's "Trading Nation."

"The market for Toyota and these large automobile companies is simply not big enough, but the moment it becomes bigger, they'll move into the field and then Tesla will have a lot of competition."

Faber sees this increased competition causing more than a small dent in the company's business and stock performance.

"I think Tesla is a company that is likely to go to zero eventually," Faber said.

http://www.cnbc.com/2016/08/09/marc-faber-tesla-shares-are-going-to-0.html
 
Thought this was a bad idea...shareholders seem to agree.

Tesla shareholder sues Elon Musk for 'using $2.6BILLION of Tesla stock to prop up failing solar panel company'

Tesla announced it would buy SolarCity for $2.6b in August
The money for the purchase would come from Tesla stock sales, it said
Now a shareholder is suing owner Elon Musk for that 'irresponsible' move
Musk 'uses Tesla like a private company not a public one' the suit claims
Shares of both Tesla and SolarCity fell after the announcement was made

http://www.dailymail.co.uk/news/article-3778869/Tesla-shareholder-sues-Elon-Musk-using-2-6BILLION-Tesla-stock-prop-failing-solar-panel-company.html
 
If I wasn't so XXXL I would put $1000 down to reserve a Model 3.

The Model X is tempting as I can fit in it but a ~$750 lease (adjusted for gas around $630) is 1%er territory.
 
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