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Articles re Tesla—Fact or Fiction?

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In an yet another FUD article in Seeking Alpha, I noticed the following quote attribute to NY Times:

In March of 2009, when Tesla was gearing up to produce the Model S (at a time when CEO Elon Musk promised that the base model would cost only $57,400 before tax credits), The New York Times ran a story with the following passage:

Tesla is also financing the development of the Model S with deposits from people on the waiting list, who can pay $40,000 to reserve one of the first 2,000 cars or $5,000 for later cars.

For those who are worried about what will happen to their deposits if the car is never produced, since the money will be spent on development and not held in escrow, Mr. Musk said: "The worst-case scenario is they would lose their money. They are at risk."


Is this true? I always thoughts deposits are maintained and accounted separately and cannot be considered as revenue until the sale is completed and as such Tesla cannot touch those funds.

It's not revenue, it's a liability like a loan and accounted for on the balance sheet as such. If the company goes bankrupt, people who paid deposits line up like other creditors in hopes of getting some portion back.
 
In an yet another FUD article in Seeking Alpha, I noticed the following quote attribute to NY Times:

In March of 2009, when Tesla was gearing up to produce the Model S (at a time when CEO Elon Musk promised that the base model would cost only $57,400 before tax credits), The New York Times ran a story with the following passage:

Tesla is also financing the development of the Model S with deposits from people on the waiting list, who can pay $40,000 to reserve one of the first 2,000 cars or $5,000 for later cars.

For those who are worried about what will happen to their deposits if the car is never produced, since the money will be spent on development and not held in escrow, Mr. Musk said: "The worst-case scenario is they would lose their money. They are at risk."


Is this true? I always thoughts deposits are maintained and accounted separately and cannot be considered as revenue until the sale is completed and as such Tesla cannot touch those funds.

There was also, circulating at that time, the direct comment that Musk would pay back every penny. He personally guaranteed the "loans". Of course, if you didn't believe he could or would, it would make that promise nil.
 
MarketWatch Insists "Sales Disappoint"

J.P. Morgan analysts expressed concerns today about how the cautious production rate of the Model X is slowing deliveries in the near term. Jeremy Owens, the San Francisco Bureau Chief of MarketWatch, apparently felt it appropriate for his headline about the analysts' note to include the term "sales disappointment".

Link to Article

I wrote to him that sales disappointment implies lack of demand in the minds of many readers, which is not the case for a car with a long backlog of orders. Even though neither the analysts nor Tesla use the word sales, Owens feels he is justified in placing the word in the headline since Tesla does not count a car as sold until it is delivered to a consumer. He wrote to me that readers who do not understand, "are mistaken and need to improve their reading comprehension."

The Reporter's Email Address: [email protected]
 
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Investors Business Daily gave TSLA an undeserved haircut by misquoting James Albertine's (Stifel) price target. Investors Business Daily quoted $204.99 as Albertine's target, instead of the $325 that Albertine announced 6 days ago. The rest of the article was pretty much a hit piece, too. I'm wondering if these reporters are just this incompetent, if they're trying to pull down TSLA so that some shorts can exit richer prior to the 4Q ER, or if they know someone ready to buy into TSLA soon. Sheesh.
The article: Tesla Motors Earnings Scheduled: Black Ice Or Autopilot? | Stock News Stock Market Analysis - IBD
 
Investors Business Daily gave TSLA an undeserved haircut by misquoting James Albertine's (Stifel) price target. Investors Business Daily quoted $204.99 as Albertine's target, instead of the $325 that Albertine announced 6 days ago. The rest of the article was pretty much a hit piece, too. I'm wondering if these reporters are just this incompetent, if they're trying to pull down TSLA so that some shorts can exit richer prior to the 4Q ER, or if they know someone ready to buy into TSLA soon. Sheesh.
The article: Tesla Motors Earnings Scheduled: Black Ice Or Autopilot? | Stock News Stock Market Analysis - IBD

Without any prior knowledge it would be prudent to dismiss a quoted price target of $204.99 from a professional analyst as bogus reporting, as none of them will ever give a price target with two decimals...
 
Thomson Reuters is today featuring a WSJ video version of yesterday's Jeremy Owen article in MarketWatch that I discussed in post #626. Again they headline that "sales" of the Model X have been disappointing in the minds of J.P. Morgan analysts. Those analysts never used the term "sales", just as Tesla does not. The analysts alluded to slow delivery due to production problems. No mention is made in the MarketWatch article or WSJ video about the huge backlog of Model X orders. But a headline about disappointing "sales" grabs eyeballs and clicks. The headline would probably leave many investors incorrectly believing there is a demand problem. I found both the original article and the video in the newsfeed for Tesla within my stock brokerage account.
 
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Hilarious. "without, hopefully," he said, "creating some sort of silly news headline, which does happen." Cited in the article itself. And then they twist the words to produce sensationalist BS headline.

This was discussed in the Model 3 thread. The reporter asked Elon when they will show pictures of the tailight. So Elon responded "in March." Then the Fudsters chummed in "OMG, Tesla is only showing pictures." Well folks, Tesla always shows us a picture before the actual reveal. Think back to the "D" and "X" tweets. The actual prototype of Model S was revealed in 2009 while the X prototype was in 2012. Of course they will have a moving prototype of 3 to show! Count on it.
 
Thomson Reuters is today featuring a WSJ video version of yesterday's Jeremy Owen article in MarketWatch that I discussed in post #626. Again they headline that "sales" of the Model X have been disappointing in the minds of J.P. Morgan analysts. Those analysts never used the term "sales", just as Tesla does not. The analysts alluded to slow delivery due to production problems. No mention is made in the MarketWatch article or WSJ video about the huge backlog of Model X orders. But a headline about disappointing "sales" grabs eyeballs and clicks. The headline would probably leave many investors incorrectly believing there is a demand problem. I found both the original article and the video in the newsfeed for Tesla within my stock brokerage account.

One analyst even rated TSLA a sell because of signs of weak demand, saying that orders for the X aren't happening. What do they expect with deposits for over a year's sales already, and with no product in showrooms yet for potential customers to see/drive?

I see this week as a buying opportunity.
 
Who benefits?

:cool:Great thread. Reviewing the growing stock Short numbers along with many negative articles does not seem coincidental. The market drop also creates a perfect storm for the shares to fall. I increased my position. Keep up the exposure of FUD.
 
One analyst even rated TSLA a sell because of signs of weak demand, saying that orders for the X aren't happening. What do they expect with deposits for over a year's sales already, and with no product in showrooms yet for potential customers to see/drive?

I see this week as a buying opportunity.
just to add no design studio pricing. Still going through reservations. If there was decreased demand would see attempt to sell
 
It's by Niedermeyer, to be expected.

Neidermeyer.jpg
 
:cool:Great thread. Reviewing the growing stock Short numbers along with many negative articles does not seem coincidental. The market drop also creates a perfect storm for the shares to fall. I increased my position. Keep up the exposure of FUD.
I doubled my position earlier this week. I am very happy I did.