Seeking Alpha

Shares of Tesla Motors (TSLA) move up 2.3% premarket as last week's earning report euphoria...

Shares of Tesla Motors (TSLA) move up 2.3% premarket as last week's earning report euphoria doesn't show any early signs of fading. Pacific Crest may have seen enough of the momentum/short squeeze run, warning that over the long term the automaker needs to ramp up gross margins to 25% from 5% and demonstrate sustainable demand.
From other sites
Comments (19)
  • Rickthegeek
    , contributor
    Comments (118) | Send Message
     
    Did anyone else see the news report over the weekend that TSLA counted sales for this past quarter of cars that have not even been closed on yet? They counted cars as sales that had deposits on them, but had not yet been delivered or actually closed the deal and collected the money.

     

    Classic cooking the books. You should not count it as sold until the unit is delivered and paid for. Whether it was paid by cash or financed.
    13 May 2013, 08:17 AM Reply Like
  • dennisg13
    , contributor
    Comments (129) | Send Message
     
    Elon Musk has been adamant that a "sale" is not counted until the car is in the owners hands. That is why "sales" are expected to be lower in Q2 as 500 cars will be in transit to Europe and will not as yet be counted as "sales."
    13 May 2013, 08:45 AM Reply Like
  • wigit5
    , contributor
    Comments (4234) | Send Message
     
    if true this means down the road they will have a disaster quarter.
    13 May 2013, 08:47 AM Reply Like
  • weekendmoe
    , contributor
    Comments (138) | Send Message
     
    Wasn`t it the opposite? According to the Q1 presentation Tesla is very conservative when it comes to registering sales? Maybe I`m missing something?
    13 May 2013, 09:24 AM Reply Like
  • wigit5
    , contributor
    Comments (4234) | Send Message
     
    As far as I know that is right weekendmoe, as dennisg13 said they have been very adamant about how they count 'sales'. So if it is uncovered that they are counting cars that haven't reached customers then that would be a huge huge discrepancy in what they have been telling the public.

     

    Honestly I don't think anyone is that arrogant when it would be so obvious in later quarters. Unless they ramp-ed up sales to double their current level it would be hard to hide.
    13 May 2013, 09:45 AM Reply Like
  • Curt Renz
    , contributor
    Comments (232) | Send Message
     
    @Rickthegeek No, I did not see the supposed "News Report". No one else here seems to be answering your question in the affirmative. Which reputable news organization made the alleged report? Please provide a link. If you can't, then you may be the victim of internet rumor mongering by shorts hoping to cover after scaring longs into selling.
    13 May 2013, 10:20 AM Reply Like
  • Rickthegeek
    , contributor
    Comments (118) | Send Message
     
    Source is Bloomberg, Cory Johnson. What was said was Tesla was taking payments on cars that have not been delivered so that they could show a profitable quarter.

     

    Go to the internet and type in Tesla Cooking the books. Read the article.
    13 May 2013, 07:08 PM Reply Like
  • Rickthegeek
    , contributor
    Comments (118) | Send Message
     
    Bloomberg, Cory Johnson. Go to the internet, type in Tesla Cooking The Books and read the article.
    13 May 2013, 07:09 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (5834) | Send Message
     
    Well, I hope to see a good pullback so I can get in. Should have listened to my engineering friend who bought into the (TSLA) IPO.
    13 May 2013, 10:38 PM Reply Like
  • 123man
    , contributor
    Comments (1258) | Send Message
     
    Please sight your source - the info I read was exactly the opposite - I will go back and look for my source -
    13 May 2013, 08:25 AM Reply Like
  • uncle_fweddy
    , contributor
    Comments (60) | Send Message
     
    Something I read...I think, right here, on Seeking Alpha, mentioned that some reservations were moved forward from 1Q 2013, to 4Q 2012. But no 'Book Cooking' was alleged. In fact, the author was warning that some--probably shorties--would attempt to use that information to mislead investors into believing that something improper was occurring. In fact, the move was taken in order to avoid an announced price hike that took place in January 2013.
    13 May 2013, 08:39 AM Reply Like
  • berylrb
    , contributor
    Comments (2257) | Send Message
     
    I think what was reported was that there was some aggressive phone calls to get some who were sitting on the fence to commit and that led to closed deals and delivered cars.

     

    Which is consistent w dropping the reporting of reservation numbers, Tesla is implementing strategies to get rid of dead weight on the reservation lists.
    13 May 2013, 11:29 AM Reply Like
  • toonies
    , contributor
    Comments (440) | Send Message
     
    First few Tesla S in Prague and Bratislava visible and a few pieces available to buy from individual importers. Some fans are not willing to wait till Elon will start delivery in central Europe:).
    13 May 2013, 09:56 AM Reply Like
  • berylrb
    , contributor
    Comments (2257) | Send Message
     
    Individual importers? Wow, how does that work? Is Tesla selling to car brokers? What does that do for software updates, warranty, etc.?

     

    Haven't thought of that yet, a used car market for Model S, ... already!
    13 May 2013, 12:02 PM Reply Like
  • toonies
    , contributor
    Comments (440) | Send Message
     
    New, imported directly by owners or used too. Now I am looking for prices for used Tesla in Czech republic, for example 40 kWh model with 2 km travelled is offered at price CZK 2,000,000, what is USD 100,000. Terrible price and profit ... But gasoline prices are terrible too. US gallon per USD 7 yesterday at Shell.
    SW update is no problem, warranty I hope is covered some way, but I do not know now. Tesla services are open in Wien and in Munich and new coming soon in Milano, Frankfurt.
    With well set pricing here is great potential in EU. Shipment in EU will start in August, if I informed well.
    13 May 2013, 01:16 PM Reply Like
  • Surf Dog
    , contributor
    Comments (826) | Send Message
     
    Creative short desperation is the only explanation for this article.
    13 May 2013, 01:50 PM Reply Like
  • Rickthegeek
    , contributor
    Comments (118) | Send Message
     
    Here is the article people:

     

    Tesla Motors recently announced that it recorded its first-ever quarterly profit, a very important step for the company that took government loans to develop an relatively affordable electric saloon. Whether the Model S is a truly affordable EV is another question, especially now that Tesla has pulled the plug on the 40 kWh-battery variant of the Model S – which was also the cheapest.
    Coming back to the profit reported by Tesla for the first quarter of this year, it seems that the company pulled a few strings to make it happen. According to a report from Bloomberg, Tesla urged customers who had reserved cars, but had not yet made their payments, to do so.

     

    In a March email sent by Tesla to a client, the carmaker asked for help in reaching the milestone that would help the company and its customers:

     

    “Tesla is right on the cusp of profitability this quarter for the first time in 10 years since the company started. This is a huge company milestone that will not only be great for the company, but also for our customers. In order for Tesla to be able to count your Model S for the quarter, we simply need to receive payment,” reads the email obtained by Bloomberg Television’s Cory Johnson, who said Tesla confirmed the email.

     

    What this means is that Tesla became profitable by receiving payments ahead of schedule, also giving its stock price a significant increase in the process. However, there could be a side effect to this move – Tesla’s second-quarter results could suffer since payments that would have been made in the coming months were made ahead of schedule.

     

    You can watch Bloomberg Television’s report on this interesting story below.

     

    By Dan Mihalascu
    13 May 2013, 07:15 PM Reply Like
  • berylrb
    , contributor
    Comments (2257) | Send Message
     
    @Rich, both Dan and you appear at first blush to misunderstand what "receive Payment (no plural)" means.

     

    It means that if the outstanding balance due after deposit was $85,000, Tesla received $85,000! The customer "paid" for their car. No book-cooking.

     

    Dan is right to warn that Q2 "could suffer", however, Elon gave guidance for Q2 that obviously takes into account Q1 revenue from the alleged "early" payments.

     

    Happy trading!
    15 May 2013, 02:22 AM Reply Like
  • 123man
    , contributor
    Comments (1258) | Send Message
     
    I got my Model S on 5/10 - Tesla could have asked for the money early, they did not - there was no mention of early payment even though they knew the delivery date in March - mine is only one experience, but I have not talked with anyone, either personally or by blog that has had a different experience - so in my opinion the talk about "pushing" up collections is exactly that - TALK
    14 May 2013, 10:01 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs