Archives for September 11th, 2013
It’s fun to bet against Elon Musk and Tesla – that’s the best reason we can find for so many people doing it even though the man, his company and his cars are still here and still very popular. The latest name inscribed in the column labeled “Skeptical of Tesla” is John Shinal at Market Watch who, in year-end commentary on Tesla’s financials, says that the “carmaker’s financials are reminiscent of a dot-com’s.” He does not mean that in the good way.
To be fair, Shinal isn’t exactly betting against Tesla, he’s saying that if you check the bottom lines, the only thing keeping Tesla alive is the hundreds of millions in Federal Department of Energy loans it has received. Based on its filings, he says the company has less than six months of cash on hand, hasn’t produced as many cars as it promised and had to lower its revenue forecast for 2012, has had a “year of net losses and negative operating cash flow,” and was underwater by at least $37 million at the end of the third quarter.
But Shinal’s not done there, summarizing Tesla as an operation with “a poor habit of failing to deliver to customers the cars it has promised them, while simultaneously raising the prices of those yet-undelivered cars,” and “a lousy level of customer service.” He says there are more damning things to be found in Tesla’s SEC registration settlement from September, but we’ll have to wait for his next column to find out what those are. The takeaway, in Shinal’s opinion, is that even though Tesla will keep getting money from the government, that investors have no business dealing in Tesla stock.
Early in his piece, Shinal says Tesla’s financials are worse than those of Zynga and Groupon, two hot dot-coms that have fallen on their faces since their IPOs. Shinal knows far more about finances than we do, but we wonder if it makes the most sense to compare a brand new car company developing brand new technologies – with the colossal amounts of up-front cash each one of those things requires, and a company with Tesla’s record so far – to a social media game developer and an online coupon distributor. Head over to Market Watch to read the full piece.
Related Gallery2012 Tesla Model S: First Drive
Ford, General Motors, Chrysler, Nissan, and Tesla are among 13 companies joining together as founding Partners of the Department of Energy’s Workplace Charging Challenge.
“The market for electric vehicles is expanding dramatically, giving drivers more options to save money on gasoline while reducing carbon pollution,” said Energy Secretary Steven Chu.
The mission of DOE’s Workplace Charging Challenge is to increase the number of employers with workplace charging by tenfold within the next five years in hopes of strengthening the nation’s electric-vehicle infrastructure while increasing consumer exposure to plug-in electric vehicles.
Joining those automakers are 3M, Duke Energy, Eli Lilly and Company, General Electric, Google, San Diego Gas & Electric, Siemens, and Verizon. The DOE will be providing technical assistance and establishing a network where Partners and Ambassadors can share their best practices.
“These 13 companies are taking strong steps to make charging infrastructure more broadly available to their workforce – setting an example for others to follow and helping America lead the global race for a growing industry,” Chu said.
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By Jason Siu