Tesla Stock Plunges $5.5B as Model 3 Suffers 6-Month Delay – IOTW Report

Tesla Stock Plunges $5.5B as Model 3 Suffers 6-Month Delay

Breitbart California:

The value of Tesla Inc. stock plunged by about $5.4 billion over a 48-hour period this week as the company declared a large quarterly loss and finally acknowleded that deliveries of its high-volume Model 3 will be delayed by at least 6 months.

Tesla (OTC: TSLA) has only made a profit in one quarter of its 14-year existence, and that was only due to selling federal and state tax credits to traditional auto manufactures and others that actually do make taxable profits.

Although Tesla’s $2.98 billion third quarter revenue slightly beat Wall Street analysts’ estimates, the company lost $671 million, or $2.92 per share. That was twice the-$336 million loss in the prior quarter, and set an all-time cash burn high of $16 million per day.

Breitbart News reported in early October that CEO Elon Musk had announced that Tesla Inc. had its “all-time best quarter” with record deliveries of 26,150 vehicles, including 14,065 Model S sedans; 11,865 Model X SUVs; and 220 Model 3 economy cars. That was considered a disappointment for Model 3 deliveries, and its stock sold off by 1 percent.

But Musk emphasized that through “physics-first principles,” Tesla would shape a new mode of industrial production to improve efficiency by “factors of 10 or even 100 times.” He said Tesla’s key advantage in building all-electric vehicles was limiting the number of moving engine parts to 20, versus up to 10,000 for internal combustion engines.  read more here

17 Comments on Tesla Stock Plunges $5.5B as Model 3 Suffers 6-Month Delay

  1. Let’s see, for a typical v8 gas engine,you got 8 pistons, 8 connecting rods,16 valves,valve springs,and rocker arms,1 crankshaft, camshaft, oil pump,distributor, and timing chain. Even if you count hardware, like connecting rod bolts and nuts, and break parts down further into their components like piston rings, wrist pins, and retaining clips, and count all the external ancillary components like fuel pumps and alternators, you still don’t come to anywhere near 10,000 moving parts. It just goes to show you that Musk isn’t the genius that people say he is – even in areas where he should have a clue. The only genius that Musk has lies in his ability to milk the government out of billions of dollars,and don’t even mention paypal, someone one else would have come up with something else just like it if he hadn’t had got that going.

  2. Oh yeah, one other thing, if you are going to use the same parts counting system on the Tesla motor moving parts as any counting system that could come up with anything more than hundreds of moving parts on a gas engine, than the Tesla motor has WAY, WAY, more moving internal parts than just 20. How dumb does Musk think we are? Dumb enough to buy an electric car?

  3. The great Florida Irma evacuation is still fresh in my mind. Evacuees stuck in bumper to bumper for hours, 8 – 10 or more, operating gas stations few and far between, and in the aftermath, power grid and fuel stations gone.
    Makes me want to run out an buy an electric car///s

    @JustAl
    There are tens of thousands of off line and abandoned windmills still spinning, still chopping birds up in California.

  4. I happened to be talking with a friend last Sunday who has invested quite a bit into Tesla. He cashed out what he put in and still owns some shares, so he will be fine. I was telling him I had wanted to short it last year – when it was around $240 – and of course that wouldn’t have gone well for me. I told him he should have a stop-loss at least. And the production issue was exactly why I thought it would eventually fall.

    Meanwhile, I shorted Twitter. And their quarterly loss was ‘less than forecast’ so their stock zoomed up. Guess I’ll have to hold on another quarter until it tanks.

  5. My understanding is that while the three month delay hurt the stock the real kicker was Trump announcing an end to the tax rebate program at the federal level which was followed by a number of states that have a tax incentive program also indicating they’re going to end them. I thought I read the stock slipped 7% which isn’t really a plunge unless you’re a newspaper but if the rest cancel the tax programs I would look to Tesla shuttering their auto operations in year followed by Solar City (when their government welfare comes to an end) and Space X when the feds stop feed ing it work. I suspect that Musk is already working on his next scam.

  6. I have never hidden my distaste for Musk.
    He is a grifter, a snake oil salesman, an idea thief.
    In another century he and Edison would be pals and they would both screw over the real genius.
    Ironically, Tesla is the name the thief chose to name his doomed, stolen technology car.
    The most kind thing that can truthfully be said about Musk, he is an entrepreneur, certainly no genius.

  7. I was going to say that Elon Musk is today’s Preston Tucker. And besides the less than 50 Tucker Torpedo’s ever built are way far cooler looking than any Tesla out there. I think he’s as nuts as Nikolai Tesla was 100 or so years ago and probably far more dangerous.

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