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False Information: Tesla Admits It Still Hasn't Completed A Model 3 Beta Prototype

Discussion in 'Model 3' started by SocalMS, Mar 9, 2017.

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  1. SocalMS

    SocalMS Member

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    from: Tesla Admits It Still Hasn't Completed A Model 3 Beta Prototype | Zero Hedge


    Excerpts Below…


    …buried deep within the company's most recent 10-K filing is an admission that there is still no Model 3 beta prototype.


    …However, with production due to begin in H2 2017 (just 4 months away) and delivery in 2018, doubts are starting to appear


    …Wahlman points out, Tesla has not “completed” a Model 3 “beta prototype” as of, well, either of these two dates: December 31, 2016 (the period that the SEC filing covers), or March 1, 2017 (the date on which the document was filed)

    Tesla could indeed deliver a Model 3 in July 2017 and declare victory. However, that is not to be confused with what a normal car company would call its start of sales to the general public.


    …More smoke and solar panel mirrors?


    …If the economics don't work with $80k cars, how will they work with $30k cars?
     
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  2. N5329K

    N5329K Member

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    Why do you think the economics haven't worked for their $80,000 cars? As I understand it, Tesla's margins are great. Which is a good thing, given that they're plowing those margins back (and going out for more) to build the company.
    Robin
     
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  3. SocalMS

    SocalMS Member

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    My guess is that there's plenty of profit per car sold.. but the overhead is what's hurting Tesla
    a. Building out Supercharger Stations
    b. Battery Development
    c. Building new factories


    Thus the need to go to the public markets and sell stock..
     
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  4. dsvick

    dsvick Active Member

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    That's not overhead, that's expansion, and they needed that in order to develop the model 3, expand their product line, and lower their costs.

    I'm not sure where the article gets "delivery in 2018" since it is widely stated on Tesla's site that deliveries will begin this year. So yes, they can start production in July and then deliver some starting August, then more in September, even more in October, November, and December. That's called ramping up the production line, all manufacturers do it, and I'm sure whoever wrote the article knows that full well.
     
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  5. jelloslug

    jelloslug Active Member

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    This is old news. Tesla has been building beta cars since January.
     
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  6. S'toon

    S'toon Knows where his towel is

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    Full article at:
    Zero Hedge - RationalWiki
     
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  7. SocalMS

    SocalMS Member

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    Some people would say something similar about CNN/MSNBC/New York Times... etc..
     
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  8. jelloslug

    jelloslug Active Member

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    Yea, OK.
     
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  9. strider

    strider Active Member

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    All media is biased. Be it ZH, NYT, WaPo, etc. You just need to know the slant of what you're reading and consume from a wide variety of sources. The truth will be somewhere in the middle.

    ZH definitely has a bearish slant and they regularly seek out and publish bearish articles on everything. They are not Tesla haters by any stretch. They seek the negative in all things :p

    I think the problem w/ the article is that Tesla doesn't follow a traditional car model timeline. Yet the C&D person views them in that lens as that's what they know. As they say, we'll see.
     
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  10. CSFTN

    CSFTN Member

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    Isn't the proper term Capex, or capital expenditures?
     
  11. animorph

    animorph Member

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    "Tesla added a note in the filing to confirm that those beta prototypes are part of the vehicles “currently” being built in Fremont:"

    Tesla confirms production of Model 3 ‘beta prototypes’

    "No beta prototypes" was as of 2016 year end. They have built some now, but apparently they must be approved by the board to be official. Doesn't mean they can't use what they have already built to test.
     
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  12. stopcrazypp

    stopcrazypp Well-Known Member

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    There was another thread on this somewhere, but the gist I get is that this is largely a semantics thing. They are building prototypes, but they are not "beta prototypes" for the purposes of the SEC filing until the board approves the given prototypes as such. So it may be very well that they built the prototypes already that would eventually be considered "beta", just that they have not been labeled as such.
     
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  13. gregincal

    gregincal Active Member

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    So you just answered the question of how the economics work on a 30K car better than an 80K car. Many more are sold and the increased profits from sales of cars is better able to offset the capital expenditures. Indeed, this expenses are pretty much solely related to ramping up production for the Model S, so they will actually go down as the profit from selling the cars goes up.
     
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  14. SocalMS

    SocalMS Member

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    Yes, I understand how it works.

    I wasn't asking any questions, I was merely quoting the article...
     
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  15. SageBrush

    SageBrush 2018: Drain the Sewer

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    Do you really think that the document would reflect happenings at Tesla up to the filing date ?
     
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  16. slipnslider

    slipnslider Member

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    I know the media makes mistakes, but to trust conspiracy blogs instead of respected journalists makes you likely to go do something crazy like electing a sociopathic megalomaniac con man to the presidency.
     
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  17. Snow Drift

    Snow Drift Member

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    Guys, read the 10K, it is As of December 31, 2016. It does not include any period after.

     
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  18. AlMc

    AlMc 'Senior Moments' member

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    @Snow Drift drops the mic and walks off the thread.
     
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  19. N5329K

    N5329K Member

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    There's no Goldman Sachs conspiracy. Lyndon LaRouche would never allow it.
    Robin
     
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  20. S'toon

    S'toon Knows where his towel is

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