Featured Tesla must stop overpromising, could need more finance: analysts

hmm... more stock shorters?

interesting, the different vibe you get from green cars to autoblog.

 

And those that have been following Tesla will note that they were better at meeting the Model 3 deadline than with the S and X.

 

Sucking less on a car that was supposed to be designed for production after learning the hubris from Model X isn't much of an accomplishment.

It is not a matter of if Tesla will need the next secondary. Tesla will have to sell more stock and/or issue more bonds sometime "early" next year (my opinion) to cover the cash burn. My bet is on more stock.

 

True. There have been more Model 3s produced in the first 4 months than Model S or Model X in the same time period since start of production. And that shows that they are improving, albeit slowly. Still, even with the delays they are talking about, they should be able to pump out 200,000 Model 3s by the end of next year.

 

I wish we could get more technical details about the battery assembly station problem(s) which I understood included hardware issues. I understand having to rework someone else's mess (I was an operating system programmer before migrating to network engineering.) I've lost a lot of sleep rebuilding or building from near scratch what others had worked so hard to screw up. <SIGH>

Bob Wilson

 

i just hope they're too big to fail. and while the shorters love seeing the stock price go down, at this point, i don't think wall street has the guts to walk away and take they comeuppance.

 

In Revenge of the Electric Car, Musk had a meeting with customers that put down a deposit on the Roadster and told them the car is going to cost them more than they were told. You want a Tesla, you have to put up with things.

 

I don't think we will ever get full details. The details claimed are these -
Tesla Model 3 delays due to battery module assembly line

Now its always a management screw up, when such things happen with a supplier, and as such Musk himself has took responsibility on the call, but ... Jon Wagner would have been in charge of this stuff, and he apparently has now left tesla to start a different company.
Tesla&#039;s Director of Battery Engineering has reportedly left the company

Here is what IEEE thought of the challenge at the end of last year.
2017 Is the Make-or-Break Year for Tesla’s Gigafactory - IEEE Spectrum
Of interest is one of the analysts on what expectations really were for many of them.

 

Thanks!

I'm getting a better picture but the one reveal in the IEEE Spectrum article is:

And the vertical integration at the Gigafactory may be missing the biggest cost saver of all: making the cathode materials. CMU’s Ciez says that suppliers of nickel cobalt aluminum oxide and nickel manganese cobalt powders command large markups. Tesla declined to comment on whether the Gigafactory will make these powders.​

This can be a real show stopper. If dealing with the raw material, Tesla has market power to command better prices. But it sounds like they are letting the Panasonic partner to handle that critical resource.

Bob Wilson

 

My guess is sometime down the road, Tesla wants to buy Panasonic outright. But that's just my guess.

 

Panasonic makes the Toyota batteries, right? That could be worrisome.

 

I recently posted an Amer Chem Society article on the battery metals supply outlook, but suffice it to say the relatively limited Cobalt supply is going up in price.

https://cen.acs.org/articles/95/i37/Metal-prices-challenge-battery-sector.html?h=1452911879

 

as partners in their joint venture I don't find that Panasonic (as opposed to Tesla) using their clout to get cheap prices on raw cathode materials as being any kind of fatal electric car manufacturing flaw, but then again (just like the 50/50 crystal ball gazing stock experts), I've never manufactured cars, much less electric ones, much less, in high volume. Call me wacky but we used the 6% price dip to jump in and by a teeny little bit o' stock, thinking this might be our last opportunity.
Yea,
Maybe GM should start over promising and under-delivering.

Just sayin' .....

.

 

Hill, best wishes for the trade. Hope you bought enough to sell the call.

Someone is selling ~$1 million worth of common stock.

 

is that a lot?

 

to most? 1mill is definately a lot.
A lot of stock? % wise?
Maybe < 1/5000 of 1%.
.

 

it's amazing how many financiers are desperate for a big drop. can't they make any money investing in companies they believe in?

 

yes, but that takes longer

Mike

 

I had a typo in the original post. Tesla issued $10 million worth of common stock to acquire Perbix (factory automation equipment). Perbix seems to be a one man operation. Those shares will be available for loan. I don't know how anxious the owner is to sell or how much additional stock he controls so we probably won't know if/when he sells.

Bisco, there's money to be made on the way up. There's money to be made on the way down. And there's money to be made when the stock goes sideways.

Tesla is an easy target because the stock is supported by hopium.