Musk & SEC / Tesla Shares Skid / Disappointing deliveries

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https://www.theglobeandmail.com/bus...f-with-sec-in-court-at-contempt-hearing/
Quote
Musk to square off with SEC; Tesla shares skid as first-quarter deliveries disappoint... Lawyers for Tesla Inc Chief Executive Elon Musk will argue on Thursday that he did not violate a fraud settlement with the U.S. Securities and Exchange Commission and should not be held in contempt, the latest twist in a high-profile battle between the billionaire and the government. Musk's fight with the SEC, to play out in a Manhattan federal court hearing, has raised investor worries that it could lead to restrictions on his activities or even his removal from Tesla, while distracting him at a pivotal point in the electric car maker's expansion.Tesla, which built its reputation on luxury cars, has faced several production challenges with its Model 3 sedan, which it is counting on to reach the mass market, recently offering a version starting at $35,000. The SEC on Feb. 25 accused Musk of violating his October 2018 settlement by posting material information about Tesla on Twitter six days earlier, without first seeking approval from company lawyers. Musk has countered that the information was not material, and did not need to be vetted. It is unclear whether Musk will appear at the hearing. The battle concerns a tweet that Musk sent to his more than 24 million Twitter followers: "Tesla made 0 cars in 2011, but will make around 500k in 2019," meaning 500,000 vehicles. Four hours later, Musk corrected himself, saying annualized production would be "probably around" 500,000 by year end, with full-year deliveries totalling about 400,000. The SEC called the earlier tweet "obviously different" from Tesla's Jan. 30 outlook, when it targeted annualized Model 3 production exceeding 500,000 as soon as the fourth quarter, and projected 360,000 to 400,000 vehicle deliveries this year. Musk's lawyers countered that the earlier tweet merely restated a forecast he had given on Jan. 30, when he said Model 3 production could total 350,000 to 500,000 vehicles. They have also said the SEC had conceded during settlement talks that Musk did not need pre-approval for all tweets about his Palo Alto, California-based company.
 

StevieC

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Originally Posted by JeffKeryk
In 2013 TSLA was mid $30's. It is $267 today.
Closing physical dealerships and missing like they did in the article mentioned above signals problems. Sure they are $267 today but how much of that is positive speculation driven by the "Musk can do no wrong" factor. wink Look at Blackerry (Formerly Research in Motion). They were on-top of the world with a great stock price and then tanked.
 
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So the SEC and the courts view Twitter as a public space for announcements, but Twitter censors users and implements biased algorithms and acts like it's platform is NOT a public space.. Interesting.
 
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Originally Posted by JeffKeryk
In 2013 TSLA was mid $30's. It is $267 today.
It's best not to look back at a stocks performance but to look ahead. Past performance is not indicative of future results.
 
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I thought the Model 3 was selling like hotcakes in Europe and China? They litter the roads here, can't go a mile without seeing 3-4.
 
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When i saw Tesla was going to build a $35,000 Model 3, which I called the "electric Corolla", a low margin, high volume product, I saw it as being the beginning of the end for them. You just cannot build 50 years of LEAN manufacturing/distribution/selling experience in 2 years.
 
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Originally Posted by 1978elcamino
Tonight im going to watch the movie Tucker: The Man and his Dream.
One of my favorite movies, makes me yearn for a Tucker! You think the same things going on here? Big automakers trying to crush the competition?
 
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Originally Posted by StevieC
Originally Posted by JeffKeryk
In 2013 TSLA was mid $30's. It is $267 today.
Closing physical dealerships and missing like they did in the article mentioned above signals problems. Sure they are $267 today but how much of that is positive speculation driven by the "Musk can do no wrong" factor. wink Look at Blackerry (Formerly Research in Motion). They were on-top of the world with a great stock price and then tanked.
Tesla does not have physical "dealerships"; they have stores. The stores do not carry inventory. Traditional dealerships are middle men; you buy a Tesla factory direct. Tesla stores have cars on display and some offer test drives. We got ours at a service center. Click-click-click, a credit card downpayment for $2500 and the cars was delivered to our doorstep in less than a week. The overseas delivery logistics problem hurt; there are buyers there. Remember they were the #1 luxury cars last year; most of which was Q4. Anyone who follows Elon know he does lots wrong. Some of his decisions hurt production, such as mass automation. He admitted and corrected this by building 2 huge tent manufacturing lines outside the Fremont factory. Tesla is a different car with its electronics and drivetrain. They have had to learn by their mistakes as they went along. Musk admitted he was not a car builder. What will happen to Tesla? Who knows. But it sure seems other car companies are scrambling to catch up. It seems odd to me that many seem to revel in Tesla's problems, which have been many. Their debt is huge. But what they have done is amazing; a true Silicon Valley success story.
 
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Originally Posted by Danno
Originally Posted by JeffKeryk
But what they have done is amazing; a true Silicon Valley success story.
Define "true Silicon Valley success".
An idea; put everything on the line, work like crazy. If it works you just might change the world. You may fail; you may succeed and then technology overtakes your success; it is all part of the process. There is a buzz; an excitement in Silicon Valley. FYI, I met with the ex. Tesla CIO and was blown away by Elon's ideas regarding my line of work. Tesla uses SAP for manufacturing, which is sooooo expensive. I hate SAP and mfg systems in general. Elon hated SAP; we discussed writing our own MRP II system.
 
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It is truly amazing how far Elon has made it on his Secret Master Plan. He went from a roadster that was very basic in it's technology. Even archaic compared to where a Tesla is today. And he sold it to a bunch of rich guys. Then he used that money, and what others invested in Tesla, to build the Model S, What he learned from the Model S, he put into the Model 3, a car that is intended for the masses. And he has gotten people to invest a small fortune into Tesla. Some are in in totally for the money. But many have invested in Tesla because they believe in his goals. They believe in the change that he want to, and has, drive. Whether Tesla is still in business or not five years from now, Elon has already succeeded. Tesla has entirely changed the landscape of the automotive world. Before Tesla, there were very few attempts at electric cars. None of them very inspiring. Now, practically every car company has already introduced electric cars, or they are about to. And every one of them have used Tesla as the benchmark in their designs. How far will the Tesla go on a charge? How fast will it charge? How much power does it have? I am convinced that, without Tesla, none of the other car companies would be anywhere near where they are today in developing and introducing electric cars. So, yea. Elon has already succeeded.
 
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Originally Posted by JeffKeryk
Tesla does not have physical "dealerships"; they have stores. The stores do not carry inventory.
Just being pedantic, but it's basically needed in these threads - what kind of store carries no inventory? The first, most obvious possible answer to that question is one where I won't be making a purchase.
 
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Originally Posted by Garak
Originally Posted by JeffKeryk
Tesla does not have physical "dealerships"; they have stores. The stores do not carry inventory.
Just being pedantic, but it's basically needed in these threads - what kind of store carries no inventory? The first, most obvious possible answer to that question is one where I won't be making a purchase.
You can purchase one at a store if you want to. That's what I did. Simple.
 
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StevieC

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Originally Posted by Garak
Originally Posted by JeffKeryk
Tesla does not have physical "dealerships"; they have stores. The stores do not carry inventory.
Just being pedantic, but it's basically needed in these threads - what kind of store carries no inventory? The first, most obvious possible answer to that question is one where I won't be making a purchase.
It was the wrong choice of words on my part. I used dealership and shouldn't have. It's fine.
 
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An associate of mine took his Model 3 to have it detailed. The owner told him there were going to be some areas which her guys could not correct because the factory is buffing off too much clearcoat or burning it. She said of the makes she sees it is Tesla which has the worst QC when it comes to paint defects.
 
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Originally Posted by Garak
Originally Posted by JeffKeryk
Tesla does not have physical "dealerships"; they have stores. The stores do not carry inventory.
Just being pedantic, but it's basically needed in these threads - what kind of store carries no inventory? The first, most obvious possible answer to that question is one where I won't be making a purchase.
They might not have actual inventory at the store, but they do carry some inventory which may be a few blocks away.
 
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