Is Tesla Equipped To Change The World? – Infographic

7 months ago by EVANNEX 52

Tesla Vehicles Supercharging

TESLA REVOLUTION: HERE’S HOW ELON MUSK IS CHANGING THE WORLD [INFOGRAPHIC]

We live in a cynical age, in which the idea that someone might be motivated by a desire to make the world a better place is simply incomprehensible to many people. This is one of the reasons why the mainstream press has never understood Tesla [NASDAQ: TSLA] – the pundits pontificate, prattle and preen, but much of what they write reveals a profound ignorance of the company’s mission.

*This article comes to us courtesy of Evannex (which also makes aftermarket Tesla accessories). Authored by Charles Morris

The financial media provides the most obvious example of this obliviousness. Most stock analysts think about the future only in three-month units, and pretty much all are convinced that the only reason to run a company, or to buy a stock, is profit. Every time TSLA stock makes a new surge, they rant and rave: “This company loses money quarter after quarter! It’s just got to crash and burn soon!”

Tesla Model S at company’s Fremont factory

One possibility that hasn’t occurred to any of these market mavens is that Tesla will never book any substantial profit, because it will always plow its earnings back into new projects, and that the company exists for another reason than enriching its owners. Does this mean that investors will desert the company once they figure out the con? Maybe not – just maybe, many of Tesla’s backers are also interested in using their wealth to do good, and are proud to be part of a company that’s changing the world.

And change the world Tesla has indisputably done. The innovations that Elon Musk and his merry men and women have set in motion have already had enormous influence on the automotive industry, on the environment, and on society as a whole – and the party is just getting started. A recent article in Futurism* describes seven ways in which Tesla is changing… everything.

  • Electric vehicles

When it comes to EVs, Tesla is the undisputed leader. Furthermore, it has proven that an EV can compete, and win, against legacy internal-combustion vehicles. Musk and company set out to build “not just the best electric cars, but the best cars,” and by almost all accounts, they have succeeded (see Consumer Reports, Motor Trend, Car and Driver, etc etc etc). The Model S P100D is the world’s fastest-accelerating production car, and Teslas also earn top marks in safety and owner satisfaction. “That these cars are better for the environment ends up feeling like a really, really great bonus,” says Futurism.

  • Autonomy

Electrification remains controversial in the auto industry, but almost everyone agrees that self-driving cars are on the way, and that they will greatly improve highway safety. Considering how much of today’s civilization revolves around cars, vehicle autonomy has more potential to redefine the way we live than just about any other technology on the horizon. In this area also, Tesla has been the prime mover.

  • Ridesharing

Five years after the first Uber app was downloaded, ridesharing has become a billion-dollar industry and a major disruptor of the transportation market. Uber and Lyft have been the main innovators in this space, but Tesla is never far from the conversation. In 2015, Uber CEO Travis Kalanick famously told Tesla backer Steve Jurvetson that “if Tesla’s cars are autonomous, he’d want to buy all of them.” Tesla has suggested that it may get into the ridesharing game itself, with a twist. The Tesla Network would allow self-driving Teslas to be summoned via an app, and to generate income for Tesla owners while they aren’t using their vehicles. “This would be… a significant offset on the cost of ownership for a car,” said Musk in August 2016.

  • Solar energy

Renewable energy and electric vehicles are symbiotic industries, related in many ways. Tesla formalized this close relationship with its recent acquisition of SolarCity, which has already been one of the major drivers of solar adoption in the US. The company’s new solar roof tiles may prove to be the tipping point that really kicks the solar market into high gear. “I think there’s quite a radical difference between having solar panels on your roof that actually make your house look better versus ones that do not,” said Musk during Tesla’s recent earnings conference call. “I think it’s going to be a night-and-day difference.”

  • Tesla Energy

Stationary storage is the missing link between the solar panels on your rooftop and the EV in your garage.  It will also be critical to converting the electrical grid to renewable energy. Tesla’s huge 80 MWh Powerpack station is already storing energy for Southern California Edison, and more and bigger projects are on the drawing board.

  • US manufacturing jobs

Manufacturing does have a future in first-world economies, but it’s high-tech industry, not 20th-century smokestack industry, that will be providing the blue-collar jobs. Tesla’s Gigafactory already employs hundreds of workers, and now the company has announced it will adding 550 more jobs there, to produce Model 3 motors. Musk has predicted that the Gigafactory could someday employ 10,000 people. A new right-wing regime in the US is highly skeptical of the new energy economy, but they do understand the language of jobs.

  • Vision

Around the world, people and nations are building walls, burning bridges and retreating inward, saying that we can’t afford big projects or big thinking. Elon Musk and Tesla follow precisely the opposite philosophy, offering a beacon of hope. In 2013, shortly after unveiling the Hyperloop proposal, Musk was asked by a BBC interviewer, “Do we suffer from a low level of ambition? Should we think bigger?” Naturally, the Iron Man said yes: “You want to do projects that are inspiring and that make people excited about the future. Life’s got to be about more than just solving problems.”

Futurism put it well: “Musk has proven that a single person can still have a huge impact on the world around them. At a time when big business is often seen as the Goliath out to exploit the Davids of the world, Tesla is a welcome exception. It’s a multi-billion-dollar company that seems more interested in building a better future than satisfying shareholders, and for that, we are grateful.”

Tesla

The Tesla Revolution (Infographic)

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*Source: Futurism

*Editor’s Note: EVANNEX, which also sells aftermarket gear for Teslas, has kindly allowed us to share some of its content with our readers. Our thanks go out to EVANNEX, Check out the site here.

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52 responses to "Is Tesla Equipped To Change The World? – Infographic"

  1. Buy more Teslas! says:

    Dear cult members, I love you!

    1. Rich says:

      “We live in a cynical age, in which the idea that someone might be motivated by a desire to make the world a better place is simply incomprehensible to many people.”

      1. JIMJFOX says:

        YES indeed! “Free Market Economics” is broken, if any such system ever existed in the real world. Musk, Gates, Buffet are value adders, Soros et al are parasites.

        1. trololo says:

          Gates a value adder ? Things are not binary. Microsoft has been fighting opensource for years, it has just begun to change recently. Opensource is the real value adder, most of the devices you are using to view this article are based on opensource software (web server, routers, DNS, smartphone, operating systems, browsers, etc.). In a Microsoft world where every software is locked (no source, patented, etc.), we will still be at the stone age of IT.

    2. rey c says:

      and that is why tsla is goig to suceed and become a behemoth 10 to15 yrs from today

  2. Pushmi-Pullyu says:

    “Is Tesla Equipped To Change The World?”

    That’s a complex question, a fallacy like “Did you stop beating your wife?”

    The question isn’t whether Tesla is “equipped” to change the world. The question is whether or not Tesla has managed to have an impact on our culture; managed to change public perceptions about EVs, and accelerate the EV revolution. I think the answer is a very emphatic “Yes!”

    That would be true even if Tesla had gone out of business in 2010. Inspiring GM to produce the Volt, and Nissan to produce the Leaf, were sufficient to kick off the modern EV revolution. Tesla also inspired dozens or hundreds of companies large and small, and university research teams, to compete to improve batteries. That is something else which has “caught fire” and will continue whether or not Tesla continues to grow its production year-on-year.

    Whether Tesla’s various products, its PowerWall and its solar roof tiles and its Model 3, will be successful products or not… well, those are different questions. The odds seem very good for the Model 3 to be a success; the other products appear more iffy, because they have real competition whereas the Model 3 arguably does not.

    Tesla has already changed the world, whether or not any or all of the products shown on that infographic will be commercial successes.

    1. maxime mineault says:

      the answer to that question is simple. Yes tesla is equipped to change the world. they have elon musk. that’s all they need.

    2. Jn says:

      beating your wife??? what an example! you’re n idiot.

      1. Martin Winlow says:

        I suspect readers with a slightly higher intellect (and grasp of basic English) than you appear to possess, may come to an alternative conclusion.

    3. Carl J. Loeffel says:

      I feel really proud to have been one of the first 70,000 people to put money down on a Model-3. and plan to put a Tesla power wall in my solar powered home. Tesla is helping to save our planet!

      1. Plugmein says:

        Me too

  3. JBA says:

    Sadly, these days Wall Street has very few true “investors” instead it is saturated by traders and those that focus on making money by keeping stocks ans stock markets unstable so that they can make as many short term swing trades as possible.

    1. ijonjack says:

      Take the money & Run! That is the reason wall St. can’t understand that Tesla Is Re-investing all Profits into the future of Tesla ie: Superchargers Solar Production , Storage & so on..That is also the reason Tesla Cant show profits yet. Once Tesla gets Rolling & production Costs come down , Look out Power Producers & Ice Makers , You will be Obsolete !!.NO MORE MONOPOLY FOR YOU!!..FOREVER!.

    2. Get Real says:

      You mean like this guy (the completely non-empathetic Robert Mercer) heavily funding Breitbart, Trump and the rest of the alt-right crazies with his high speed leeching (trading) profits which do absolutely nothing for investing or the public good in this country?

      http://www.newyorker.com/magazine/2017/03/27/the-reclusive-hedge-fund-tycoon-behind-the-trump-presidency?mbid=nl_TNY%20Template%20-%20With%20Photo

    3. realistic says:

      Sorry, dudes. Without evil Traders betting for (and against) TSLA very vigorously the financing levels (to keep the lights on in Fremont) wouldn’t be nearly as high.

      Example: Tesla just raised sufficient financing to keep the lights on for awhile with Convertible Bonds. Which group of people comprise a large fraction of Convertible Bond buyers? Why, short sellers, of course, who purchase the bonds as a hedging and/or arbitrage instrument. Thanks to avaricious Traders, the value of Tesla’s financing instruments are higher.

      Another example: What is a key feature in Tesla’s Convertible Bonds that helps to bolster the confidence of Long investors and attracts money (to keep the lights on) despite a relatively low coupon rate of 2.375%? Why hedging transactions to limit dilution of its common shares, of course. That keeps angelic Long Tra… I mean INVESTORS happy, also buying bonds and keeping their shares.

      Another example: The underwriters of the most recent issue were given the opportunity to purchase an additional 15% (a “greenshoe”). They all did, and in the process helped keep the lights on to build batteries, cars and tiles. Why would they do that? Read the prospectus to see what they are able to do with their shares, like lend them out FOR SHORTING.

      Tesla doesn’t make money. Tesla RAISES money, and they are able to do so (to keep the lights on) thanks to the wacky and wonderful world of Wall Street.

      1. TomArt says:

        You do not need unbridled avarice for capital markets to function effectively. You do not need to destabilize people’s retirements and companies’ ability to raise and maintain capital in order for capital markets to function effectively.

        This is people’s jobs and their lives at stake. If you want to gamble, then go to a casino. I’m sure that, if laws were enacted to crack down on all these abusive trading practices, then people will still invest heavily in stock and bond markets, because they need to in order to retire (at least in the US).

        For the junkies, casinos will create fake stock markets that mimic the real ones, so that you can have fun winning/losing there, while your retirement account is sitting comfortably in the real stock and bond markets.

        1. realistic says:

          Tom, if you were speaking of a “normal” business and rational valuation, I would mostly agree. But you’re not.

          Unbridled avarice is the only thing that can cause people to look at an issue that for years has been unable to sustain operations without capital raises at a pace greater than once per year and say “I’ll buy more”.

          The most wrongest-est thing you said is “You do not need to destabilize people’s retirements and companies’ ability to raise and maintain capital”. That just isn’t true. PLease do read the 424b5 for ALL of Teslas most successful raises (the Convertible Bond issues) and see that option hedges and various “price stabilization” actions are the backbone of share price assurance. Moreover the measly coupon rates (0.25% and 1.5% for prior issues and 2.376% for the latest) don’t make them attractive: their potential as arbitrage instruments are what makes them attractive.

          If you don’t like the shenanigans, tomfoolery and other old man slang represented by TSLA trading, by all means stay out. But if all of you level-headed, right-thinking types really ran the thing, Tesla wouldn’t be able to raise enough money to go on.

          1. TomArt says:

            You don’t need to be greedy in order to believe in Tesla, and figure that it will pay off, eventually, if you hold it long enough. That’s what investing is all about – putting your money where your mouth is!

            It’s the day trading, micro- and nano-trading, as well as the shorting and other gambling stunts, that cause the problems. If people invested to invest in the company, rather than play with funny money, then the cycles wouldn’t be so bad, screwing over millions of people at home and abroad.

  4. georgeS says:

    Good article:

    “One possibility that hasn’t occurred to any of these market mavens is that Tesla will never book any substantial profit, because it will always plow its earnings back into new projects”

    A real possibility IMO but that doesn’t mean the company isn’t viable.

    “A new right-wing regime in the US is highly skeptical of the new energy economy”

    right wing regime???

    I beg your pardon,

    Just out this AM on the WSJ:

    “White House opens Doors to Democrats after bills Failure”

    https://www.wsj.com/articles/white-house-opens-door-to-democrats-in-wake-of-health-bill-failure-1490547877

    Donny just told the Freedom Caucus to pound sand:)

    (just a bit of tongue in cheek humour)

  5. Just_Chris says:

    I think that the title of this article should be:

    “The world is changing and Tesla is well placed to take advantage of this”

    We, humans in general, have a habit of trying to attribute credit for things to single entities. Tesla are doing great but, IMO, they are not driving the change, change is coming from the actions of many different groups. Germany and Denmark with their policies to drive solar and wind are at least, if not more, as influential as Tesla. CARB has been pretty effective at getting things moving. China and India are now building renewable energy facilities like crazy. This list could go on and on – what we are seeing is a global shift, arguably the US is behind in some ways.

    If Tesla goes bust, I don’t think it will, but if it did then another company full of equally talented people would spring up and keep going. As I said I don’t think this will happen, Tesla have a massive lead in a number of areas that gives it a big advantage. I don’t agree that Tesla is revolutionary in the way its business is growing and taking over markets. Other companies have followed this sort of trajectory. I am pretty sure that the stock market understands the situation which is why it has valued Tesla so highly. People on the news are generally not independent specialists, they are people trying to get a message out or make money from talking. The people advising pension funds where to invest are not telling anyone anything unless they are paid big bucks. IMO, when it comes to stock advice “he who shouts loudest should be ignored most”.

    1. paul smith says:

      Ummm, no. It’s definitely Tesla.

      1. Martin Winlow says:

        Well… don’t forget that without people (and much larger entities) gobbling up Tesla’s products, Tesla would not exist. A true cure for the cynic, IMO (and I should know after 30 years a London, UK policeman!).

    2. rey c says:

      only in america does it seem to be that when you try to do good for the environment that the government and wall street try to knock you or your comp down

      1. realistic says:

        “only in america does it seem to be that when you try to do good for the environment that the government and wall street try to knock you or your comp down”

        “Seem” is the operative word, rey. But not in reality.

        (1) From 2013-16, Tesla received $775M in ZEV and GHG credits, the majority of which were derived from credits sold to other car companies to avoid enforcement penalties requiring ZEVs.
        (2) Tesla products enjoy ITCs at up to $7500/car and 30% for solar installations, as well as a variety of other real and intangible benefits (from outright rebates to lane privileges to magnanimous net metering) in many states. Most of these are enjoyed by citizens in the upper quintile of income.
        (3) Tesla has received hundreds of $M of factory construction incentives and tax waivers.
        (4) The Department of Energy loaned Tesla $465M and on at least three separate occasions extended/forgave loan covenant violations (related to such categories as working capital) which ultimately could have been enforced under default provisions.
        (5) The SEC repeatedly warned Tesla about reporting and disclosure irregularities to the point that the agency insisted outright “Please clearly state that you have not generated positive operating cash flows in the past two fiscal years and when you anticipate that you will generate positive operating cash flows, if at all” (16 Sept SEC letter, Page 6, Liquidity and Capital Resources), a clear indication of Tesla “misbehaving” in filings, yet no penalty was assessed.

        It doesn’t take very long to come up with these examples. There are many more.

        Now: could other auto manufacturers have done exactly the same thing and enjoyed the same benefits? Sure! Does the SEC have to scold other companies for playing fast-and-loose with disclosure and withhold punishment? Yup. Teslas isn’t getting special treatment.

        But in no case is Tesla being thwarted by “the Government”. (On the topic of Tesla’s distrubution model disallowed in a few states: I think overall the state-level incentives more-or-less balance out negative effects, but it is definitely an irritant.)

        As for Wall Street… please. Tesla/TSLA is Wall Street’s wet dream.

  6. jim stack says:

    The model S has changed the world.
    The GigaFactory has chaged the world.
    The Power Wall has changed the world.
    The Power Pak has changed the world.
    The Self Driving has changed the world.

    Their new model 3, solar panels and other inoivations will continue to change the world.

    1. rey c says:

      we tsla cult followers maybe the minority but together we will overcome go tsla

  7. JIMJFOX says:

    Another Tesla or Apple? Or bigger than both?
    http://thorconpower.com/news

    1. realistic says:

      Thorium reactor notions have been around for decades. “ThorCon” is no more a competitor in this (currently) imaginary business than the dozens of US companies and alliances that have proposed this since my young and athletic days (shortly after the Punic Wars). Add to that the fact that short of a Max Max-ian world of energy poverty, America is not going to return to the promise of nuclear energy. Ain’t gonna happen.

      BTW, forget not the ongoing frenetic activity in China and India to advance Thorium Power.

  8. thore kjellberg says:

    anyone knows dimension of a tile?

    1. realistic says:

      No one knows anything about the tiles yet except that they will contribute to Saving the World.

  9. LOL says:

    Prerequisites: mastering low power magnetic field, wireless transmission of power on a massive scale. Without these two implemented fully no-one will pull it off.

  10. Mister G says:

    Tesla’s mission statement is to clean up transportation system and if a profit is made great.

  11. MItsch says:

    ”Does this mean that investors will desert the company once they figure out the con?” Perhaps tsla owners are not in it for the profit?
    Well, Tesla’s capital is borrowed to a substantial degree and banks will want their money back. If we find ourselves in a financial crisis like 2008, Tesla is very very vulnerable.

    1. Doggydogworld says:

      Tesla mostly borrows against hard collateral, such as cars in transit that already have buyers or cars out on lease. These lenders will get their money back whether Tesla makes a profit or not. Their only risk a Tesla crash that’s so spectacularly the cars themselves lose a lot of value.

      That said, if Tesla is truly devoted to doing good instead of making money their IPO and secondary offerings were criminally fraudulent. They should have done a GoFundMe campaign instead.

      1. realistic says:

        Tesla’s ABL is secured by Assets (hence the “A” in ABL). But the Convertible Bond and Share issuances are not asset-backed, and comprise the great majority of financing.

  12. icekk says:

    A key milestone in Tesla would be to create an energy storage market, so that a house owner wants a Powerwall as much as people desire a Model S. We can transform our society to low carbon with energy storage because renewable energy is generally intermittent. Will Powerwall have the same commercial success as Model S is yet to be seen.

  13. Spider-Dan says:

    “Elon Musk: great man, or the greatest man?”
    Such tough choices.

    It’s a little difficult to believe in the world-saving selflessness of Elon Musk and Tesla when the one solar panel company he decided that Tesla should buy – SolarCity – just happened to be the same one that he and his family had major stock holding in, AND had rapidly deteriorating finances.

    Can any Elon supporter honestly say that SolarCity had the best solar panel technology on the market? Why did Tesla decide to buy that company over the dozens of other solar companies? The answer is clear to any rational person.

    1. realistic says:

      Why do you hate The Children, Spider-Dan? Why?
      /s

    2. Nix says:

      Because Solar City was the only one on the brink of launching the Solar Roof.

      1. realistic says:

        Dang. THAT’S why no other company among the dozen-and-a-half where it was shopped made an offer for the business. And the reason it was worth two and a half $B.
        Who knew?

      2. Spider-Dan says:

        You say this as if “solar roof” is self-evidently the best solar panel technology being developed by any solar company. Is that your claim?

        Again: if SolarCity didn’t have the best technology, then why did Tesla buy them? There are plenty of other failing solar companies with middle-tier tech that Tesla could have gotten for cheaper.

  14. realistic says:

    Seriously: can we stop with the nonsensical “Wall Street hates Tesla” posts?

    “Wall Street” LOVES Tesla. Read the latest 424b4, the document by which Tesla raised another $1.2B or so to keep the lights on and proceed with their grand plan.

    Names on the document include:
    Goldman, Sachs & Co.
    Deutsche Bank Securities
    Citigroup
    Morgan Stanley
    Barclays
    BofA Merrill Lynch
    Credit Suisse

    All of these companies have participated in the past in one or more of the $6B+ financing rounds ($8.4B total) that took place prior to the most recent $1.2B+ raise. You will also see many of these names on the Asset Backed Line-of-credit Agreement. A couple of them have made personal loans to Musk totaling over $600M (some of which is repaid, BTW).

    None of that is illegal or immoral, so I don’t fault them or Tesla for doing it. My beef is with all of the keyboard moralists saying that the investment banking and brokerage community are scheming aginast Tesla. That is nonsense. On stilts.

    And, of course, I’ll say the important thing again: Tesla doesn’t fund its “investment” because it doesn’t generate the cash to do it.
    (1) Operational cash flow since IPO: ($1.1B)
    (2) “Corrected” for R&D cash expenses of ($2.8B – $153M = $2.65B), in which stock-based compensation is removed, since IPO.
    (3) Therefore accounting for all the R&D cash expenses to please the folks who say that Tesla “invests” all their money in R&D and capital, the net is $1.55B.
    (By the way, this concept is stupid, but it seems to be the way that Tesla must be mneasured in the eyes of the acolyte. Otherwise it’s a sinful analysis, even though no other auto company is viewed this way. Whatever. I, too, can momentarily inmagine a world where expense on an Income Statement doesn’t count.)

    And yet CapEx during this period was over $4.7B.
    How can this be?

    Because financing.
    Because raises.
    Because secured loans.

    Because Wall Street.
    Not eveil. Not illegal. Not immoral.
    Just normal that a highly-volatile, high-return/high-risk issue can attract speculation. But if you don’t think speculators should get to play in your Special Plan, then you don’t understand the rules.

    The whole “Tesla is Fighting Against the Wolrd and Especially Wall Street for the Children” thing is dumber than dirt. Quit it. Seriously.

    1. realistic says:

      And I misspelled a TOn of words. Apologies for that.

    2. Doggydogworld says:

      Truth outshines bad spelling 🙂

      1. realistic says:

        I appreciate the indulgence, d.d.world.

    3. Nix says:

      Realistic, you keep getting this wrong over and over.

      Because you over and over fail to account for the fact that Tesla hasn’t just built and sold cars with this money. They have also created $22,664,076 in assets. That’s right.

      You keep pretending that they haven’t invested in creating $22.7 BILLION in assets. That $22.7 BILLION in assets represents PART of what Tesla has invested into their future.

      They have also created $44 Billion in WEALTH with their investments, reflecting the market’s future value of their current investments to date, once the those investments pay off in sales.

      Why do you keep ignoring these key measures of Tesla’s investment into their company?

      1. realistic says:

        The assets can be secured for loans then. Right?

        Why aren’t they?

        Why do the signatories to the ABL keep such a tight rein on the use of funds (such as not permitting them to be used aginst SCTY indebtedness)?

        Why does working capital (current assets – current liabilities) always, ALWAYS approach negative right about the time Tesla needs another capital raise?

        Tesla has capital raises because they have to.

      2. realistic says:

        BTW, Tesla’s current tangible Book Value by standard accounting methods is about $4.7B (+/-).

        The $44B of market capitalization values the company at about 10x Book. Your call as to whther that makes sense.

  15. realistic says:

    Sez EVANNEX: “The financial media provides the most obvious example of this obliviousness. Most stock analysts think about the future only in three-month units, and pretty much all are convinced that the only reason to run a company, or to buy a stock, is profit. Every time TSLA stock makes a new surge, they rant and rave: ‘This company loses money quarter after quarter! It’s just got to crash and burn soon!'”

    Actually: no.

    There are actually very few analysts who “follow” the issue (that is track it closely, estimate quarterly results and project share price) who say this. The history of over-optimism among analysts from the “majors” is legend. The projections of positive earnings are (a) consistent and (b) consistently wrong. For the ~16 or so who regularly look out 12-18 months, here is their record for guessing FY2016 Earnings per Share (non-GAAP), +/- about a dime or so in averaging their numbers:
    Feb ’15: $5.80
    Apr ’15: $4.00
    May ’15: $3.60
    Aug ’15: $2.70
    Sept ’15: $2.40
    Nov ’15: $2.20
    Feb ’16: $1.70
    Mar ’16: $1.30
    May ’16: $0.80
    June ’16: $0.60
    Aug ’16: ($0.80)
    Sept ’16: ($0.90)
    Oct’16: ($1.10)

    The actual number? Well, Tesla changed their non-GAAP adjustments to exclude lease accounting, so they ended up (net of SCTY) at ($4.58). Restore the lease provision to be apples-to-apples and the number comes out to roughly ($3.25), by my gracious estimate.

    Assuming an average of 125M shares during this time (pre-SCTY issue), they were off by over $1BILLION. The reason this is a big deal, besides being just ridiculously, embarrassingly wrong, is that (a) the estimating record of the analysts has looked like this for almost three years now, and (b) most of these losses (excepting D&A) pretty much translate to cash.

    Second: The few pessimistic analysts out there (bears) projecting losses and cash burn are generally correct while the optimists (bulls) are nearly always wrong.
    The optimistic analysts (bulls) projecting Tesla’s ready and successful ability to raise capital have ALWAYS been correct while the pessimists (bears) have ALWAYS been wrong.

    Results?
    (1) Tesla as a non-profit company lives on while the great majority of analysts keep projecting earnings that don’t happen.
    (2) The evil moneymakers are active, cunning and well-practiced traders and of course the market makers in the TSLA issues (who, oddly, keep projecting imminent profitability).
    (3) People like EVANNEX continue to misconstrue everything they skim about markets.

    1. Nix says:

      All you have done is show exactly why Tesla historically used to give both GAAP and non-GAAP numbers. Because GAAP just means standardized by the government, it doesn’t mean more accurate. They are simply two different ways to do accounting, and both have their upsides and downsides.

      When you look at the non-GAAP numbers from Tesla, they are much more in line with the estimates from the pundits. Going to show that going with the government standardized method doesn’t always give the most accurate results.

      We’ve known this for a long time, with issues like Tesla having to wait to book their sales subject to resale value guarantee until the guarantee period was over. Even though they had already banked the cash. Even though they were never exposed for the full purchase price. They still couldn’t show those sales under GAAP. But they were accounted for properly under the non-GAAP numbers that were much closer to the wall street estimates.

      1. realistic says:

        Nix, your response is a non-sequitur. I addressed non-GAAP apples-to-apples throughout that post, and corrected for the changes to Tesla’s non-GAAP adjustments in order to REDUCE the inaccuracy of the analysts. All the analysts following the stock expressed their estimates in non-GAAP terms. This has been true for years and still is.

        I also clearly acknowledge that the use of non-GAAP “pretty much translates to cash” excepting D&A which was not addressed in Tesla’s adjustment method. I did NOTHING to differentiate between the two and did not criticize Tesla for using an adjustment. Tesla’s non-GAAP adjustment took out the major non-cash considerations like stock-based compensation (and in the past warrants). I don’t have a problem with that and neither does my post. If an analyst said $5.80 earnings per share non-GAP and then said oops! I meant ($3.25 losses) per share non-GAAP he was off by $1B using Tesla’s accounting adjustments, and that amounts to cash from Operations being about $1B less, all things being equal. That means that those analysts were wildly optimistic about Tesla’s ability to sustain capital expenditures and working capital for growth.

        Finally GAAP isn’t a “government” idea, although the SEC considers the way in which companies should make primary disclosures of performance. I’ll quote from Accounting Coach (a good site):
        “The phrase “generally accepted accounting principles” (or “GAAP”) consists of three important sets of rules: (1) the basic accounting principles and guidelines, (2) the detailed rules and standards issued by FASB and its predecessor the Accounting Principles Board (APB), and (3) the generally accepted industry practices.”