jpd80 Posted February 24, 2017 Share Posted February 24, 2017 Tesla's cash burn raises concerns on Wall Street February 23, 2017 @ 11:46 am Dana HullDavid Welch Bloomberg...via autonews.com Tesla has been a serial spender under Musk, who’s made it his mission to accelerate the auto industry’s transition to electric transportation. Through the first half of this year, the company will have spent about $10 billion in r&d and capital expenditures since 2014, according to Morgan Stanley. "We're about to find out where this invested capital is going," Morgan Stanley analyst Adam Jonas said. Musk said Wednesday while a cash raise isn’t critical to release the Model 3, it’s probably wise. Tesla shares fell 6.4 percent to close the day at $255.99. The stock had surged more than 40 percent from early December through the close Wednesday, as the steady state of the Model 3 led investors to bid up the 14-year-old company’s market value to rival automakers that have been around more than a century and sell millions of cars a year. The capital expenditures planned ahead of the Model 3 introduction surpassed the $2.3 billion that Ryan Brinkman, a JPMorgan Chase & Co. analyst, had estimated the Palo Alto, California-based company would spend in all of 2017. Tesla’s projection raises the likelihood of a stock offering to boost capital in the near term, he said. “And with a market cap approaching that of GM and Ford, arguably it could be done on amenable terms,” Brinkman wrote in a report Thursday. There’s obviously going to be a fair bit of incremental investment to go from 5,000 cars a week to 10,000 cars a week, but it’s going to be a lot less than getting to 5,000 cars a week in the first place,” Musk said. Going from 5,000 to 10,000 will probably cost “somewhere between 50 percent to 70 percent of the cost of the 5,000 line.” Brian Johnson, an auto analyst at Barclays Plc, said in a report Wednesday ahead of Tesla’s earnings that he would “not be surprised to see a $2.5 billion raise instead of the $1.5 billion equity raise currently reflected in our model.” Cash needs Whiston projects the company’s needs are even greater -- he expects Tesla will have to raise $3 billion to fund Musk’s ambitions. Reassurances from Musk on the timing for the Model 3’s introduction may relieve fret over whether the company can overcome its long history of product delays. Management ranks, on the other hand, remain unstable -- Chief Financial Jason Wheeler, who joined the company about 15 months ago, will leave in April. Quote Link to comment Share on other sites More sharing options...
fuzzymoomoo Posted February 24, 2017 Share Posted February 24, 2017 All of this plays into the belief around here that Tesla is not structured survival and their stock is over valued. Analysts seem to be taking notice finally. I'm seeing more and more articles questioning whether or not Tesla is overvalued. It seems the honeymoon is finally coming to an end. Quote Link to comment Share on other sites More sharing options...
J-150 Posted February 24, 2017 Share Posted February 24, 2017 Buh buh buh Elon is an innovator... Quote Link to comment Share on other sites More sharing options...
92merc Posted February 24, 2017 Share Posted February 24, 2017 But Tesla's market cap is on pace to beat Ford soon. Their stock valuation will soon be higher than Ford's. So Tesla is beating Ford! http://www.marketwatch.com/story/teslas-huge-stock-move-pushes-its-market-cap-closer-to-fords-gms-2017-02-22 When you have blinders on, everything looks just fine at Tesla. Don't drink the Kool Aid... Quote Link to comment Share on other sites More sharing options...
jpd80 Posted February 25, 2017 Author Share Posted February 25, 2017 This is a house of cards built on market confidence and investors wanting to believe in Tesla, these grandiose plans better deliver or there's gonna be a lot of angry investors... Quote Link to comment Share on other sites More sharing options...
fuzzymoomoo Posted February 25, 2017 Share Posted February 25, 2017 Could be worse They could be Faraday Future 1 Quote Link to comment Share on other sites More sharing options...
OX1 Posted February 25, 2017 Share Posted February 25, 2017 When the average person realizes (and start telling their friends) how much of a PIA an electric is going to be in real world daily usage, almost no one will want them. Quote Link to comment Share on other sites More sharing options...
akirby Posted February 25, 2017 Share Posted February 25, 2017 An electric with a 200+ mile range isn't a problem for daily driving for 99% of drivers. Plug it in when you get home and unplug it in the morning. 1 Quote Link to comment Share on other sites More sharing options...
sullynd Posted February 25, 2017 Share Posted February 25, 2017 When the average person realizes (and start telling their friends) how much of a PIA an electric is going to be in real world daily usage, almost no one will want them. Yeah, if you don't have to stop at a gas station, when will you pick up your Mello Yello and Slim Jims? Such a PIA. Quote Link to comment Share on other sites More sharing options...
OX1 Posted February 25, 2017 Share Posted February 25, 2017 People are not going to plug it in every night. They are going to push the range (people still run out of gas, just human nature) and think they have enough or just forget due to life getting in the way. First time the thing needs to be towed home (vs just waiting for AAA to show up with gas can), it will be gone for 99% of people. Quote Link to comment Share on other sites More sharing options...
akirby Posted February 25, 2017 Share Posted February 25, 2017 People like that won't buy one in the first place. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted February 25, 2017 Author Share Posted February 25, 2017 (edited) People are not going to plug it in every night. They are going to push the range (people still run out of gas, just human nature) and think they have enough or just forget due to life getting in the way. First time the thing needs to be towed home (vs just waiting for AAA to show up with gas can), it will be gone for 99% of people. I think the exact opposite of what you predict will happen, range anxiety is the one big issue holding back EV sales and until people feel comfortable with using an EV in their routine, you're going to see lots of new owners watching their "fuel gages" like crazy and topping up where they can. Sure there will be people that will run out of charge on the freeway and some may walk away form EVs but IMO, the fear of that happening will force a change in attitudes and vigilance to ensure that doesn't happen. Even with the Tesla 3 arriving, EV sales will still be a tiny sliver of total annual vehicle sales so we're only talking about a gradual uptake of EVs and plenty of time to get used to them. Edited February 25, 2017 by jpd80 Quote Link to comment Share on other sites More sharing options...
jasonj80 Posted February 27, 2017 Share Posted February 27, 2017 There are chargers in tow trucks that will give electric vehicles about a 10mile charge to get them to a charging station. http://www.plugincars.com/aaa-introduces-roadside-emergency-charging-electric-cars-107663.html(2011) https://electrek.co/guides/ev-mobile-charging/(2016) Doesn't seem to be an issue. Biggest issue i see is that there still isn't a standard for chargers, there are 4 different connectors out now for fast charging. Quote Link to comment Share on other sites More sharing options...
mustang let back Posted February 27, 2017 Share Posted February 27, 2017 But Tesla's market cap is on pace to beat Ford soon. Their stock valuation will soon be higher than Ford's. So Tesla is beating Ford! http://www.marketwatch.com/story/teslas-huge-stock-move-pushes-its-market-cap-closer-to-fords-gms-2017-02-22 When you have blinders on, everything looks just fine at Tesla. Don't drink the Kool Aid... Also they get billions from the government.once that money is taken from them,they will fall apart quick. :happy feet: Quote Link to comment Share on other sites More sharing options...
msm859 Posted February 27, 2017 Share Posted February 27, 2017 People are not going to plug it in every night. They are going to push the range (people still run out of gas, just human nature) and think they have enough or just forget due to life getting in the way. First time the thing needs to be towed home (vs just waiting for AAA to show up with gas can), it will be gone for 99% of people. Wrong. My son owns a Chevy Volt - plugs in every night - and at work. Rarely goes to a gas station. Lifetime average is over 150 mpg. Has a deposit on the Tesla model 3. In 5 years he has had 2 oil changes - zero issues. He will never go back to an ICE vehicle. 1 Quote Link to comment Share on other sites More sharing options...
silvrsvt Posted February 27, 2017 Share Posted February 27, 2017 Wrong. My son owns a Chevy Volt - plugs in every night - and at work. Rarely goes to a gas station. Lifetime average is over 150 mpg. Has a deposit on the Tesla model 3. In 5 years he has had 2 oil changes - zero issues. He will never go back to an ICE vehicle. What happens if you forget for a night or two? Quote Link to comment Share on other sites More sharing options...
fordmantpw Posted February 27, 2017 Share Posted February 27, 2017 What happens if you forget for a night or two? Same thing that happens if you forget to get gas? 2 Quote Link to comment Share on other sites More sharing options...
msm859 Posted February 27, 2017 Share Posted February 27, 2017 What happens if you forget for a night or two? Well if someone is truly concerned that they would forget to plug in there car every night, they could go with the cordless option and simply park in their garage and it automatically starts charging. Although plugging in your car becomes second nature and takes a fraction of the time you would otherwise spend at gas stations. Quote Link to comment Share on other sites More sharing options...
akirby Posted February 27, 2017 Share Posted February 27, 2017 If you rely on plugging in the vehicle to be able to drive it the next day, you're not going to forget. Quote Link to comment Share on other sites More sharing options...
rmc523 Posted February 27, 2017 Share Posted February 27, 2017 If you rely on plugging in the vehicle to be able to drive it the next day, you're not going to forget. You'd just have to make it a habit to plug it in when you get home. Quote Link to comment Share on other sites More sharing options...
fordmantpw Posted February 27, 2017 Share Posted February 27, 2017 I would be more worried about forgetting to unplug it! Quote Link to comment Share on other sites More sharing options...
sullynd Posted February 27, 2017 Share Posted February 27, 2017 I would be more worried about forgetting to unplug it! Because you'd have to get out and unplug it? You can't drive plugged in. Quote Link to comment Share on other sites More sharing options...
fordmantpw Posted February 27, 2017 Share Posted February 27, 2017 Because you'd have to get out and unplug it? You can't drive plugged in. Because I would forget and rip the plug out of the wall or the car or both. Quote Link to comment Share on other sites More sharing options...
sullynd Posted February 27, 2017 Share Posted February 27, 2017 Because I would forget and rip the plug out of the wall or the car or both. By tripping over it? The car will not move if it is plugged in. Quote Link to comment Share on other sites More sharing options...
fordmantpw Posted February 27, 2017 Share Posted February 27, 2017 By tripping over it? The car will not move if it is plugged in. OK, I did not know that. I guess I was relating it to my Super Duty with the block heater that I could plug in, start, and back out without unplugging. Quote Link to comment Share on other sites More sharing options...
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