When it comes to Tesla, it’s almost like the headlines from the sycophantic press mean the opposite of what is really going on. There are two major problems with their supposed “record” deliveries.
The Rate of Growth Is Far Short of Expectations
I’ve seen financial models to try and justify Tesla’s stock price and the assumptions are exceedingly rosy. In order for Tesla to even come close to proving that the stock price is justified, they need to break delivery records by a magnitude of tens of thousands each quarter. More like a hundred thousand vehicles. Simply squeaking in a record like they did is a huge disappointment to people who really study the numbers.
Tesla Appears to be Employing Accounting Tricks
Faced with a quarter of disappointing deliveries, it looks to me like the accounting people were instructed by Musk to “make it happen”. Look at this interesting tidbit uncovered by GLJ Research.
I’ve seen financial models to try and justify Tesla’s stock price and the assumptions are exceedingly rosy. In order for Tesla to even come close to proving that the stock price is justified, they need to break delivery records by a magnitude of tens of thousands each quarter. More like a hundred thousand vehicles. Simply squeaking in a record like they did is a huge disappointment to people who really study the numbers.
Tesla Appears to be Employing Accounting Tricks
Faced with a quarter of disappointing deliveries, it looks to me like the accounting people were instructed by Musk to “make it happen”. Look at this interesting tidbit uncovered by GLJ Research.
Something smells rotten here. The stock split is just a ruse to keep the stock price up in the face of increasing evidence that Tesla is way over valued. If you’re an investor in Tesla. Good luck, you’re going to need it.
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