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Bryce_in_TX

Bryce_in_TX
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  • Has Tesla Just Recognized It Also Builds To Inventory? [View article]
    Finished Goods Inventory was stated as $397 million, not $357 million. At $80K each (cost to manufacture not retail price is how they are valued under GAAP), that equates to 4,962 or roughly 5,000.

    From the China articles, I have to go with 2,000 plus unsold cars are probably there.

    The 1400 not delivered would have to be on the balance sheet under Finished Goods Inventory.
    Feb 28, 2015. 07:00 PM | 2 Likes Like |Link to Comment
  • Tesla's Claims Of Being Production-Constrained Don't Add Up [View article]
    cparmerlee,

    I thought it was regular service, regular maintenance, such as rotating the tires, or tire alignment, something of that nature. No, I see nothing wrong with it.

    Some of the cars have had to have drivetrains replaced, and other things like that. The Model S is a new car. I view this as a learning and growth experience Tesla is going through. Yes, it costs Tesla money, but I think the problems are over blown. If the reliability issues were a major issue, I would expect the Tesla forum to be lit up like a Christmas tree with multiple thousands of folks expressing the same issues. That is not the case.

    I hold to the idea that Tesla is in the growth stage of their development, and operating expenses are excessive due to expansion. I don't expect them to be making a profit at this point. It's too early in their development, IMO.
    Feb 28, 2015. 05:40 PM | 1 Like Like |Link to Comment
  • Has Tesla Just Recognized It Also Builds To Inventory? [View article]
    Paulo,

    That was 4,000 plus "imported" to China. I don't see any reference to that many being sold.
    Feb 28, 2015. 04:40 PM | 1 Like Like |Link to Comment
  • Has Tesla Just Recognized It Also Builds To Inventory? [View article]
    "Btw, in China there are probably 2k cars sitting in the shelves somewhere - OUTSIDE of TSLA's balance sheet."

    Still waiting on an answer to this one. Cars outside the balance sheet means not on the balance sheet. You are saying these are not in inventory, but recorded by Tesla as being sold. What proof do you have?
    Feb 28, 2015. 03:57 PM | 1 Like Like |Link to Comment
  • Has Tesla Just Recognized It Also Builds To Inventory? [View article]
    Dogfellow

    2000 plus in China
    1400 in finished goods but not delivered at year end
    1600 as loaners, demos, and marketing cars

    That is your finished goods inventory of 5,000 cars (5000 times 80K cost to build equals $400 million or $397 million, as it is listed in the 10-K)
    Feb 28, 2015. 03:44 PM | Likes Like |Link to Comment
  • Has Tesla Just Recognized It Also Builds To Inventory? [View article]
    "With "1400" cars said not delivered in 2014 Q4, how many were fully paid for and really mis-represent the Customer Reservations valuation and how much will it fall after Q1?"

    I take issue with the word "mis-represent". Until it is recognized under GAAP as revenue, it is a customer deposit, a liability. It's like "orders". Until the car is delivered, it's still an "order".
    Feb 28, 2015. 02:01 PM | 1 Like Like |Link to Comment
  • Tesla's Claims Of Being Production-Constrained Don't Add Up [View article]
    This service center looks very busy. Wonder how many loaners they have?

    "When I dropped off my car yesterday there was a long row of cars (30-40) going into service. I told my wife I don't think they will get it finished today... at 4 pm it was done and picking my car at 5 pm all the morning cars were parked washed on the other side done with service."

    http://seekingalpha.co...
    Feb 28, 2015. 12:29 PM | 2 Likes Like |Link to Comment
  • Tesla's Claims Of Being Production-Constrained Don't Add Up [View article]
    Well the Honda Dealership will take me somewhere or home if I need a ride, while the car is serviced. But, they don't provide loaner cars for me to drive while it is being serviced. Tesla does. Hence the need for more loaner cars at a Tesla service center.

    http://bit.ly/1j9ElSL
    Feb 28, 2015. 12:13 PM | 3 Likes Like |Link to Comment
  • Has Tesla Just Recognized It Also Builds To Inventory? [View article]
    @cparmerlee,

    "The point is that there is no cost-benefit to opening the factory next year if they are only going to assemble packs. it would be cheaper to simply continue assembling those packs in Fremont. But one of the reasons to take that year of inefficiency is to start the spigot of cash-EQUIVALENT benefits flowing from the Nevada taxpayers."

    Tesla is building a gigafactory. You are saying there would be no cost-benefit from beginning to generate some revenue from this fixed cost? It would be better to have that fixed cost without some offset from revenues? Makes no sense.

    In addition, do we know what is in the agreement with the city and or the state? It is good for the city and the state to have this work there in the gigafactory, generating employment for the city and revenue through that employment. It's good to scratch each other's back, so to speak, to maintain good relations with the city, since they and/or the state are providing all of these financial incentives. Why is that hard to understand? Our city did a lot of this, including while I was employed by the chamber of commerce. The chamber owned the land off of which a number of businesses leased/purchased for their business locations. We were a board of industry as well as a chamber of commerce. We helped and facilitated businesses to locate to our city, providing financial incentives for them to do so. In some cases we gave the land, which the chamber owned, away. In other cases the purchase price was reduced.
    Feb 28, 2015. 11:34 AM | 1 Like Like |Link to Comment
  • Has Tesla Just Recognized It Also Builds To Inventory? [View article]
    Roddy Pfeiffer,

    This all supports my argument. Thanks.
    Feb 28, 2015. 11:20 AM | 3 Likes Like |Link to Comment
  • Tesla's Claims Of Being Production-Constrained Don't Add Up [View article]
    "When windshields crack, Safelite will replace it for you at your home, or at your office. No need for a service ranger to take your car away or give you a loaner. Same for a bent wheel. A tire gets replaced at the Michelin store, the warranty is by the tire manufacturer, not Tesla. More than two loaners per service center means a horrible failure record for the Model S where the oldest one isn't yet 3 years old, and the worldwide total of cars is under 60000. "

    I think it is reasonable to have more than two cars at a service center. I am sure the Honda Dealership has more than two vehicles to drive customers home when their car is in the shop. They ask me if I need a lift anywhere each time I take our Accord in for service. You guys are so extreme in your views.
    Feb 28, 2015. 11:04 AM | 3 Likes Like |Link to Comment
  • Sorting Out The Tesla Model X Launch: When, How, And Who Are The Buyers? [View article]
    I will add to my plausible explanation for the operating cash flow burn:

    http://on.mktw.net/1C5...

    Tesla is in an early growth stage as explained above. Give them some time to ramp up production.
    Feb 28, 2015. 06:45 AM | 2 Likes Like |Link to Comment
  • Has Tesla Just Recognized It Also Builds To Inventory? [View article]
    @cparmerlee,

    Having done the accounting for a chamber of commerce in Wichita Falls, Tx, I think it is a common practice to offer financial incentives to companies to get them to locate in your city. The reason is simple: more jobs and more business which increases the city and county's revenues, both from the company and from the employees who work at the new facility.

    We did a lot of this in the 1970s. It was a boom for the city and increased revenues greatly. Some of the companies who located here were PPG, Washex, Siemens, Levi Strauss, Sprague Electric, Howmet Castings, AC Spark Plug and CertainTeed.
    Feb 28, 2015. 06:25 AM | 2 Likes Like |Link to Comment
  • Has Tesla Just Recognized It Also Builds To Inventory? [View article]
    @Paulo,

    "Btw, in China there are probably 2k cars sitting in the shelves somewhere - OUTSIDE of TSLA's balance sheet"

    What makes you think Tesla has reported these as sold and show up as sales on the Income Statement? To me it is more reasonable to believe this is the explanation for the large finished goods inventory on the books at year end.

    Can you expand what you mean by "OUTSIDE of TSLA's balance sheet"?

    I suppose that if these cars were orders for specific people or entites, Tesla could recognize these as sales when they were shipped, perhaps. But, if the orders were canceled after they were shipped, Tesla hiding this from the auditors would be a major problem. Obviously if 2000 cars are sitting around in China, UNSOLD, the auditors need to know this. Those are not sales and should not be recorded as such.
    Feb 28, 2015. 05:51 AM | 2 Likes Like |Link to Comment
  • Has Tesla Just Recognized It Also Builds To Inventory? [View article]
    @Paulo,
    "Author’s reply » Bryce, not in this would would TSLA ever be affected by anything regarding supply, port strikes, etc, and not claim being affected by it. So if TSLA didn't claim it, it didn't happen."

    The facts are that Tesla shipped over 4,000 cars to China, but only 2,000 registered. What explains the difference? We heard nothing about this from Tesla. So, it didn't happen?

    ">>> Second Link. From 01/2014 to 11/2014, according to the numbers from Chinese custom, 4362 Model S was imported, with a total of 2057 registration, one insider told Caixin, right now Tesla claimed that the average delivery time is about 4 months, but there are many many unsold Tesla at chinese custom.
    >>> Third link: Must had huge expectation in China, shipped over 4000 to China, but only about 2000 registered, in 01/2015, the sales is at a pathetic 120, one guy drove from Beijing to Shanghai, due to unavailability of charge station, the owner had to find charger station by all means, 1300 km (~850 miles) took him three days, after the story publicized online, it cause huge disappointment, recently, another buyer complained online about all kinds of inconevience during his 9 months wait, all these bursted the Tesla bubble."

    Publicity in China about the difficulty in charging, then canceled orders which were already shipped seems very reasonable to me. Or some other reason orders were canceled after the cars were shipped. Now Tesla has a surplus of cars in China, according to the China article. That is as good an explanation as yours, Paulo.

    It sounds to me that there are 2,000 plus surplus cars in China, based on an article. There is the surplus finished goods inventory.
    Feb 28, 2015. 05:41 AM | 1 Like Like |Link to Comment
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