Second Tesla S fire in as many weeks?

Discussion in 'BEV or Battery Electric Vehicle' started by xcel, Oct 28, 2013.

  1. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    Hi All:

    Sitting at Atlanta 's Hartsfield and have little way to upload the photos of the two Tesla S' that went up in smoke but it sure is an interesting coincidence.

    Wayne
     
  2. Last edited: Oct 28, 2013
  3. seftonm

    seftonm Veteran Staff Member

    Lots of cars catch fire when they crash. Hopefully the Tesla isn't any more prone to catching fire than gasoline cars.
     
  4. ALS

    ALS Super Moderator Staff Member

    The other problem is you know the insurance industry is taking a second look at these cars after two fires. These are not cheap to fix vehicles to start with and when you add in totaled if they catch fire you're looking at a major jump in premiums coming to an owner near you.
    A $5K accident could mean an instantly totaled Tesla if it catches fire. You could easily see $7,500- $10K a year to insure these cars if we get anymore unexplained fires.
     
  5. bestmapman

    bestmapman Fighting untruth and misinformation

    Note to self: Sell the Tesla stock.
     
  6. PaleMelanesian

    PaleMelanesian Beat the System Staff Member

    Note to self: Watch Tesla stock for a buying opportunity.
     
  7. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    Hi Andrew:

    It has a market cap of $19 Billion USD with "negative" earnings. This is almost a third of what Ford is worth and just a little less than half what GM is worth. Both of those will make ~ $8 Billion USD each this year. Not to say there is any growth left in F or GM but they are earning money vs. the other way around.

    I'd be careful with this one as its valuation is a bit inflated.

    Wayne
     
  8. PaleMelanesian

    PaleMelanesian Beat the System Staff Member

    Oh, I am well aware of that. I'm actually hoping for some (minor) bad news to bring it back to reality. I believe in the concept and execution, but the stock speculation is currently way out of hand.
     
  9. ALS

    ALS Super Moderator Staff Member

    Almost all the money they make is selling their EPA mileage credits to other automakers.
     
  10. ItsNotAboutTheMoney

    ItsNotAboutTheMoney Super Moderator Staff Member

    Correction. A lot of the gross margin is selling their EPA mileage credits to other automakers.

    The think to look out for on this earnings release (on November 5th) is the ex-ZEV gross margin. It was negative Q1, about 8% for Q2, and something like 22% is expected Q3. Tesla's target for end Q4 is >=25% ex-ZEV.

    The ZEV credit earnings are a distraction since they have already guided to end-of-year profitability aims without ZEV. Where they have solid money helping is in California carbon credits. As long as they hit the ex-ZEV targets the ZEV money is just a big bonus and in case, at this point any profits are going right back into setup costs and R&D.
     
  11. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    Hi ItsNotAboutTheMoney:

    So what does the Street expect in a year (Net)?

    Wayne
     
  12. ItsNotAboutTheMoney

    ItsNotAboutTheMoney Super Moderator Staff Member

    ]''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''[[[[[[[[[[ (Sorry, that was the cat).

    I'm not an investor so I don't follow them closely enough to know that. I'm more just tracking milestones. (gross margin target, Supercharger rollouts and so on). I believe the view is that Tesla will be profitable, with the bulls and bears really differing the risks to future growth.
     

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