Automaker Gives Unique Reason For Sales Miss

3871 Views 37 Replies 20 Participants Last post by 70eldo, Feb 16, 2015

Perian

Discussion Starter · Feb 12, 2015

Boomberg.com

Note also the first 60 seconds of this video:
http://www.bloomberg.com/news/videos/2015-02-11/elon-musk-s-tesla-misses-estimates-what-happened-

February 12, 2015

Article Quotes:

Tesla Motors Inc. tumbled in early trading after the electric-car maker led by Elon Musk missed targets for vehicle deliveries and reported an unexpected quarterly loss.

Analysts had estimated a profit of 32 cents a share, on average, according to data compiled by Bloomberg. Tesla delivered a record 9,834 vehicles, missing the average analyst estimate by almost 1,000 and its own goal by 1,345.

The company said that while it met its full-year production target of 35,000 Model S cars, many weren’t finished until late in the year and couldn’t be delivered to customers in 2014 because of holiday vacations and severe winter weather. “The stock is down because they missed on deliveries, revenue and earnings,” said Theo O’Neill, an analyst with Ascendiant Capital Markets.

“But the miss has nothing to do with demand. Blaming customers for taking vacation seems like an odd thing to put in the press release.”

1 - 20 of 38 Posts

Perian

Discussion Starter · #2 · Feb 12, 2015

Perian said:
“Blaming customers for taking vacation seems like an odd thing to put in the press release.”

I've driven a Tesla, and found it to be an amazing vehicle. The acceleration capability of the vehicle is incredible, while the basic operation is completely normal. Considering the engineering involved, this is quite an achievement.

One wonders if the units produced in excess of sales are sold, or going to retail sales site inventory. If they are indeed 'sold', than why the hype in the Tesla press release about a missed sales point?

Short term however, this is one strange excuse for not selling vehicles.

Continued success to Mr. Musk and his company.

EJD1984

· #3 · Feb 12, 2015

Good PR Spin

Member17739

· #4 · Feb 12, 2015

Unlike regular auto makers, which book sales as soon as the vehicles are delivered to the dealers, Tesla doesn't register sales until a buyer takes possession of the vehicle.

Oldsmobile stopped

· #5 · Feb 12, 2015

Perian said:
Boomberg.com

Note also the first 60 seconds of this video:
http://www.bloomberg.com/news/videos/2015-02-11/elon-musk-s-tesla-misses-estimates-what-happened-

February 12, 2015

Article Quotes:

The company said that while it met its full-year production target of 35,000 Model S cars, many weren’t finished until late in the year and couldn’t be delivered to customers in 2014 because of holiday vacations and severe winter weather.
“But the miss has nothing to do with demand. Blaming customers for taking vacation seems like an odd thing to put in the press release.”

LOL does the snow only affect Tesla customers & Tesla. Excuse sounds a bit flaky to me.

GM make billions of $$$ during the same period and snowfalls MMmmm.

Member17739

· #6 · Feb 12, 2015 (Edited)

Oldsmobile stopped said:
LOL does the snow only affect Tesla customers & Tesla. Excuse sounds a bit flaky to me.

GM make billions of $$$ during the same period and snowfalls MMmmm.

I would say it affects Tesla's buyers more than GM's buyers. Tesla's buyers are individuals, who may or may not decide to leave their houses when the weather is terrible. GM's buyers are dealers, the trains and trucks carrying the vehicles from the factory are less likely to be affected by the weather.

Oldsmobile stopped

· #7 · Feb 12, 2015

Member17739 said:
I would say it affects Tesla's buyers more than GM's buyers. Tesla's buyers are individuals, who may or may not decide to leave their houses when the weather is terrible. GM's buyers are dealers, the trains and trucks carrying the vehicles from the factory are less likely to be affected by the weather.

Never would have guessed that

Oldsmobile stopped

· #8 · Feb 12, 2015 (Edited)

Member17739 said:
I would say it affects Tesla's buyers more than GM's buyers. Tesla's buyers are individuals, who may or may not decide to leave their houses when the weather is terrible. GM's buyers are dealers, the trains and trucks carrying the vehicles from the factory are less likely to be affected by the weather.

What does that say about Tesla products if you cant go out in the snow for a month?

How much do you pay for a Tesla that won't do snow for a month?

Chevy Ryan

· #9 · Feb 12, 2015

Member17739 said:
Unlike regular auto makers, which book sales as soon as the vehicles are delivered to the dealers, Tesla doesn't register sales until a buyer takes possession of the vehicle.

Wrong. Automakers book the income as soon as the dealer takes delivery, but the sale doesn't count until the customer signs on the dotted line. That's why you see cars still showing up on sales reports two years after the last one was built.

Reactions: 1

Member17739

· #10 · Feb 12, 2015

Chevy Ryan said:
Wrong. Automakers book the income as soon as the dealer takes delivery, but the sale doesn't count until the customer signs on the dotted line. That's why you see cars still showing up on sales reports two years after the last one was built.

That's what I said.

Al465

· #11 · Feb 12, 2015

Perian said:
I've driven a Tesla, and found it to be an amazing vehicle. The acceleration capability of the vehicle is incredible, while the basic operation is completely normal. Considering the engineering involved, this is quite an achievement.

One wonders if the units produced in excess of sales are sold, or going to retail sales site inventory. If they are indeed 'sold', than why the hype in the Tesla press release about a missed sales point?

Short term however, this is one strange excuse for not selling vehicles.

Continued success to Mr. Musk and his company.

Why the Tesla car is so fast is not because of the company's ingenuity It's because of the inherent qualities of electric motors. Really nothing to be excited about. But, Tesla would like you to believe that. As you can tell, I'm no fan of Tesla. Elon Musk is a very shew'd salesmen and has been BS'ing the public for quite some time.

Reactions: 4

yamahr1

· #12 · Feb 12, 2015

Al465 said:
Why the Tesla car is so fast is not because of the company's ingenuity It's because of the inherent qualities of electric motors. Really nothing to be excited about. But, Tesla would like you to believe that. As you can tell, I'm no fan of Tesla. Elon Musk is a very shew'd salesmen and has been BS'ing the public for quite some time.

Yes, like that whole Model S thing... complete Vaporware!!!!

(face palm)

So if it's just "the inherent qualities of electric motors", why are all other electric cars so much slower? I could just as easily say that a Corvette Z06's performance is only due to the "the inherent qualities of internal combustion motors" and be just as accurate. Which is to say, I'd be an idiot.

Reactions: 1

Al465

· #13 · Feb 12, 2015

yamahr1 said:
Yes, like that whole Model S thing... complete Vaporware!!!!

(face palm)

So if it's just "the inherent qualities of electric motors", why are all other electric cars so much slower? I could just as easily say that a Corvette Z06's performance is only due to the "the inherent qualities of internal combustion motors" and be just as accurate. Which is to say, I'd be an idiot.

Because Tesla is 100 thousand dollar car. You can not compare other electric cars that sells for a lot less and say "how come Tesla is so much faster".

The Tesla skateboard design is copied from GM's skateboard design of the nineties. Seven thousand Panasonic battery pack that's in the Tesla is not what I call innovative.

Elon Musk offered all his patents for free and none of his competition has taken advantage of his offer. Why? Because Elon Musk has nothing to offer today, but a niche product for the rich and a lot of BS.

Reactions: 2

Dequindre

· #14 · Feb 12, 2015

Tesla seems like a bubble waiting to burst.

Reactions: 4

SKH

· #15 · Feb 12, 2015 (Edited)

Member17739 said:
Unlike regular auto makers, which book sales as soon as the vehicles are delivered to the dealers, Tesla doesn't register sales until a buyer takes possession of the vehicle.

Thanks for the info Mr Musk!

BTW. Is that true? I'm not 100%, sure but what you just stated about regular auto makers, sounds like you made it up. A sale would be if the dealer registers a vehicle either to themselves or to a customer, no? Cars sitting on the lot and unregistered are not counted as units sold AFAIK. Please enlighten me as you seem to have more knowledge on this issue than I do.

kevinahcc20

· #16 · Feb 12, 2015

So one disadvantage of Tesla's direct sales model is that there are no intermediate dealers who buy the cars and so all inventory is Tesla's.

Sox

· #17 · Feb 12, 2015

yamahr1 said:
Yes, like that whole Model S thing... complete Vaporware!!!!

(face palm)

So if it's just "the inherent qualities of electric motors", why are all other electric cars so much slower? I could just as easily say that a Corvette Z06's performance is only due to the "the inherent qualities of internal combustion motors" and be just as accurate. Which is to say, I'd be an idiot.

You could always get a job at the RenCen.

paul8488

· #18 · Feb 13, 2015

Got a drive in a Tesla Model S 85 last night... why anyone with money would buy anything else is beyond me, unless they're frequently doing long-distance trips. For day-to-day use, it would get my money without hesitation. Should get the chance to drive it soon too; the owner said he will let me take it out on an open road and try the acceleration...

Oh, and in his parking garage in Shanghai, there were two other Teslas, along with a Maserati, Jaguar, and Range Rover, alongside a few BMWs and Mercs. They may not be meeting their China goals, but they sure did in that apartment building!

Jesda

· #19 · Feb 13, 2015

yamahr1 said:
Yes, like that whole Model S thing... complete Vaporware!!!!

(face palm)

So if it's just "the inherent qualities of electric motors", why are all other electric cars so much slower? I could just as easily say that a Corvette Z06's performance is only due to the "the inherent qualities of internal combustion motors" and be just as accurate. Which is to say, I'd be an idiot.

Are you serious?

The Model S is an expensive car. It has a larger battery pack and more powerful electric motors.

The nissan leaf is $30k

paul8488

· #20 · Feb 13, 2015

Al465 said:
Because Tesla is 100 thousand dollar car. You can not compare other electric cars that sells for a lot less and say "how come Tesla is so much faster".

You say that it's inherently faster because it has an electric motor. So why can't we compare it to other cars with electric motors? Maybe because the size of electric motor you install and how it's programmed to deliver its power to the wheels, and how well the wheels apply that power to the road, are all unique and have a huge influence. An electric car isn't a new or revolutionary technology in and of itself, but the Tesla is a very different automotive experience. Taken as a whole, it is a significantly different vehicle than anything out there.

1 - 20 of 38 Posts

This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.