globe and mail article re: tesla accounting

[Ocelot]

Sounds to me like sour grapes...by the company who promptly rated them an 'f'.

Teslas financials: A peek under the hood - The Globe and Mail

 

[Grendal]

Sounds to me like sour grapes...by the company who promptly rated them an 'f'.

Teslas financials: A peek under the hood - The Globe and Mail

GAAP vs. Non-GAAP Tesla can't count their leases under GAAP because the customer can hand the car back after 3 years. Anyone here think that everyone is planning on returning their car? No? This article says that if they did then the profits would take a big hit.

No duh. It sure doesn't look like people are going to hand their car back, unless it was to upgrade. Those used cars are going to sell like hot cakes too.

 

[araxara]

An article in Automotive News (Tesla's Model S buyback offer builds in used car revenue boost) says that, "[FONT=Arial, Helvetica, sans-serif]Used Model S sales may generate as much as $368 million in annual revenue in 2016, or an additional $40 million in annual gross profit…"[/FONT]

 

[Duckjybe]

You have struck a nerve with me about the Globe. I like the Globe and read it every day BUT they NEVER have anything overly positive to say about Tesla and the Model S. This accounting article references an OLD opinion from May 2013 about Tesla's 1st quarter results.

http://www.businessinsider.com/donn-vickrey-on-tesla-being-overvalued-2013-5

I believe the stock was trading at around $100 at the time. Things have changed a lot since then and Tesla has released another quarter of positive results so I would imagine things have changed. The Globe can't seem to publish an objective article praising the Model S for all that it is.

Today, even their Environmental page in the multi-page special information feature on the Fall New Car and Light Truck Preview, did not even mention Tesla as having a competitive electric car. They say:

"Nissan's LEAF, the Ford Focus Electric, and Mitsubishi i-Miev are all 100 per cent battery powered and internal combustion-free. According to Natural Resources Canada, these deliver the equivalent of around 2.0 L/100km for combined fuel economy. Unsurprisingly, the most fuel-efficient cars sold in Canada are all electric vehicles"

Of course on the same Natural Resources page that lists all the above most fuel efficient vehicles the Tesla Model S is listed as the most efficient Full size car in Canada!!!
http://www.nrcan.gc.ca/media-room/news-release/2013/6844?destination=node%2F6844

Was the Model S not worth mentioning? Or perhaps it was because this was an advertising "special information feature" even though it was not listed as paid advertising?


Here are some of the other articles so you can judge for yourselves:

Can You Guess How Many Canadians Bought Plug in Cars Last Month
-No mention of Teslas sales of the Model S which were unofficially similar to the Leafs.

How Can Tiny Tesla Compete Against the Big Auto Makers?

-Campares Tesla to Better Place and suggests they will suffer the same fate. Also suggests that the immanent fuel cell cars from big Auto and also the BMW i3 will all be very fierce competition for Tesla!

BMW Very Serious About Its Electric Vehicle Plans
-Suggests BMW i is going to kill Tesla when so far the i3 and i8 are not serious competition for the Model S.

Tesla is Impressive - but its not a real Car Company Yet
-suggests Tesla is just a fly by night company with an over hyped stock.

 

[jackbowers]

The guaranteed value clause is not an easy one to invoke, and the discounts are substantial (between the 36th and 39th payments, you must find a way to pay off your loan and deliver clear title to Tesla, and the price you get is 50% of the base price of a 60 kWh car plus 43% of all upgrades). On top of that, it's not even available in all states. In the unusual event that a significant percentage owners choose this option over a private sale, Tesla can simply refurbish the cars (as they are doing with Roadsters) and either resell them at a profit or put them in the service loaner pool. I have a tough time seeing how this clause will ever negatively impact Tesla's bottom line. There would have to be a major issue with battery pack longevity, and that's unlikely given the combination of Tesla's Model S battery management system and Panasonic's Nickel-Lithium batteries (my P85 still full-charges to 99% of original EPA range at 40k miles, whereas my Roadster only managed 87% of original range at that threshold).

 

[Beavis]

This whole thing is much ado about nothing. Some investors find the non-GAAP numbers to be useful so Tesla releases that information but on an interim basis in non-audited financials. They fully disclose it's non-GAAP. Yawn.

 

[Duckjybe]

You have struck a nerve with me about the Globe. I like the Globe and read it every day BUT they NEVER have anything overly positive to say about Tesla and the Model S. This accounting article references an OLD opinion from May 2013 about Tesla's 1st quarter results.

http://www.businessinsider.com/donn-vickrey-on-tesla-being-overvalued-2013-5

I believe the stock was trading at around $100 at the time. Things have changed a lot since then and Tesla has released another quarter of positive results so I would imagine things have changed. The Globe can't seem to publish an objective article praising the Model S for all that it is.

Today, even their Environmental page in the multi-page special information feature on the Fall New Car and Light Truck Preview, did not even mention Tesla as having a competitive electric car. They say:


Of course on the same Natural Resources page that lists all the above most fuel efficient vehicles the Tesla Model S is listed as the most efficient Full size car in Canada!!!
http://www.nrcan.gc.ca/media-room/news-release/2013/6844?destination=node%2F6844

Was the Model S not worth mentioning? Or perhaps it was because this was an advertising "special information feature" even though it was not listed as paid advertising?


Here are some of the other articles so you can judge for yourselves:

Can You Guess How Many Canadians Bought Plug in Cars Last Month
-No mention of Teslas sales of the Model S which were unofficially similar to the Leafs.

How Can Tiny Tesla Compete Against the Big Auto Makers?

-Campares Tesla to Better Place and suggests they will suffer the same fate. Also suggests that the immanent fuel cell cars from big Auto and also the BMW i3 will all be very fierce competition for Tesla!

BMW Very Serious About Its Electric Vehicle Plans
-Suggests BMW i is going to kill Tesla when so far the i3 and i8 are not serious competition for the Model S.

Tesla is Impressive - but its not a real Car Company Yet
-suggests Tesla is just a fly by night company with an over hyped stock.

The Globe Must be listening: A funny, positive article in thursdays Globe about Aisha Tyler and her Model S!

http://www.theglobeandmail.com/globe-drive/car-life/aisha-tylers-tesla-works-on-angels-tears-and-magic/article14893483/?ord=0