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Tesla: When Just GAAP Revenues Are Not Enough, Unleash The Non-GAAP

Tyler Durden's picture




 

The reason why Tesla is soaring currently after hours, is because this momo story stock just unveiled the next chapter of its carefully spun story. To wit:

The first Model S deliveries to China are scheduled for this spring. We plan to make substantial investments in China this year as we add new stores, service centers and a Supercharger network. Already, the Beijing store is our largest and most active retail location in the world.

...

We expect to deliver over 35,000 Model S vehicles in 2014, representing a 55+% increase over 2013. Production is expected to increase from 600 cars/week presently to about 1,000 cars/week by end of the year as we expand our factory capacity and address supplier bottlenecks. Battery cell supply will continue to constrain our production in the first half of the year, but will improve significantly in the second half of 2014.

 

First quarter production is expected to be about 7,400 vehicles, which is significantly higher than the prior quarter production of 6,587 cars. However, as the number of cars in transit to Europe and Asia must grow substantially to support those markets, we plan to deliver approximately 6,400 vehicles in Q1. Deliveries will grow dramatically in future quarters as the logistics pipeline fills.

 

This year, we expect automotive gross margin to increase to about 28% (non-GAAP and GAAP) in Q4 through a series of small design improvements, better supplier prices and economies of scale. Q1 gross margin should increase very slightly from Q4. For the remainder of the year, gross margin should improve at a faster pace.

...

Very shortly, we will be ready to share more information about the Tesla Gigafactory. This will allow us to achieve a major reduction in the cost of our battery packs and accelerate the pace of battery innovation. Working in partnership with our suppliers, we plan to integrate precursor material, cell, module and pack production into one facility. With this facility, we feel highly confident of being able to create a compelling and affordable electric car in approximately three years. This will also allow us to address the solar power industry’s need for a massive volume of stationary battery packs.

In other words: lots of bleary-eyed optimism about the elimination of production bottlenecks in "the second half of 2014", about US consumers who will be undeterred by new and some would say far "cooler" competitive EV offerings by such brands as BMW, and instead keep buying a car which roughly every month has to fight another flaming car PR disaster in the media, and about the future in general. And of course - China, because other luxury retailers have been doing so great in the country in recent months.

It remains to be seen just how much of this "story" pans out. In the meantime, we focus on the topic we touched on in November, namely the company's desire to make up not only its EPS line as a non-GAAP line time (everyone else does it, so it must be ok), but that starting in Q2 2013, the company also announced non-GAAP revenues. Below are the thoughts of Bloomberg's Jon Weil which we paraphrased at the time:

Most companies that play the non-GAAP game goose their numbers by excluding expenses. Tesla does this, too. It backs out stock-based compensation, for example. But the biggest kick to its non-GAAP earnings comes from an increase in top-line revenue.

 

The company reported third-quarter non-GAAP revenue of $602.6 million, which was about 40 percent more than its GAAP revenue. It achieved such a boost by transforming $171.2 million of liabilities into sales.

 

Here’s how it worked. In April, Tesla started a new financing program under which customers have the option to sell their vehicles back to the company after three years for guaranteed minimum amounts. The accounting rules say Tesla can’t recognize all of the revenue immediately in those instances and must account for such transactions as leases. So after Tesla takes customers’ cash, it records liabilities for “deferred revenue” and “resale value guarantee” on its balance sheet.

 

Mahoney noted two main problems with including so much of those amounts in non-GAAP revenue. Some customers wouldn’t have chosen Tesla cars were it not for the financing program. So the non-GAAP revenue isn’t comparable to Tesla’s sales before the program began, and it may overstate the true growth and demand. Plus, by adding back the resale-value guarantee, the company “assumes that nobody is going to return the vehicle, for purposes of the non-GAAP revenue,” he said.

 

Lots of companies use gimmicky benchmarks in their earnings releases. What makes Tesla special is that it behaves as if it doesn’t know the proper way to present its non-GAAP numbers. In an ironic twist, two attorneys at Wilson Sonsini Goodrich & Rosati, which helped take Tesla public in 2010, penned a lengthy article in 2008 explaining the legal requirements and best practices for earnings releases; it’s still on the law firm’s website.

 

GAAP comparison numbers in an earnings release must be set forth with equal or greater prominence to the non-GAAP numbers,” attorneys Steven Bochner and Richard Cameron Blake wrote. “For instance, if an issuer announces GAAP and non-GAAP earnings per share in its press release, it should report the GAAP earnings per share prior to the non-GAAP earnings per share.”

 

The bigger concern here should be what some investors call the “cockroach theory": Where there is one problem, there probably are more. Tesla has disclosed compliance failures before. In March, its management concluded that Tesla’s ‘‘internal control over financial reporting was ineffective as of Dec. 31, 2012.’’ Its auditor, PricewaterhouseCoopers LLP, concurred. In a related matter, Tesla had to restate its cash-flow numbers for much of 2011 and 2012. In its latest quarterly report, filed last week, Tesla said its controls still weren’t effective as of Sept. 30.

And the conclusion:

None of these flubs has been especially damaging. Yet taken together, they suggest a company that lacks basic skills in accounting and disclosure, which could be a serious problem for a young manufacturer with a $17 billion stock-market value that loses money and trades for 9.5 times its revenue for the past four quarters. The next time Tesla messes up because of poor controls, the consequences could be worse.

 

As Tesla said in its latest annual report: ‘‘If we are unable to assert that our internal control over financial reporting is effective, or if our independent registered public accounting firm is unable to express an opinion on the effectiveness of our internal controls, we could lose investor confidence in the accuracy and completeness of our financial reports, which would have a material adverse effect on the price of our common stock.’’

So while everyone else focuses on the seemingly infinite upside that a company which in a priced to perfection world will deliver 35,000 Model S cars (10,000 less than the number of F-150s Ford sold in January) , we care more about far simpler, grassroots concepts. Like unfudged revenues and earnings.

Here they are.

Revenues:

 

EPS:

 

In summary: non-GAAP P/E of 259x, and GAAP P/E of Div/0, as GAAP Market Cap/Sales is a "conservative" 12.4x. Good luck with that growth. You are going to need it.

 

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Wed, 02/19/2014 - 17:49 | 4454417 johnQpublic
johnQpublic's picture

long fire extinguishers

Wed, 02/19/2014 - 18:04 | 4454479 Soul Glow
Soul Glow's picture

Who does their books?  Aurthor Anderson?

They must be busy, being the Fed's bookies as well.

Wed, 02/19/2014 - 18:10 | 4454505 flacon
flacon's picture

I'm losing faith in "efficiant markets". Let's get this shit-show on the road already! (pun intended)

Wed, 02/19/2014 - 18:36 | 4454609 NoDebt
NoDebt's picture

Efficient doesn't imply intelligence.  Just stay away from Tesla.  Let the owners and shareholders be the ones burnt to a crisp.  You don't have to join them.

Wed, 02/19/2014 - 19:12 | 4454747 Boris Alatovkrap
Boris Alatovkrap's picture

GAAP or No-GAAP, AmeriKa sheeple is was never so good at mathematical computation. Change number, change divisor, remove significant factor from calculation, whatever it is to take to obfuscate truth in pursuit of agenda. Who is it that say, "there is lie, damn lie, and statistic"...?

Wed, 02/19/2014 - 20:31 | 4455014 AvoidingTaxation
AvoidingTaxation's picture

Boris you're progressing with your English! Cheers from St Petersburgh! Dasvidania Drug

Wed, 02/19/2014 - 18:16 | 4454530 TruthInSunshine
TruthInSunshine's picture

Apple will merge with Tesla soon and so Tesla's current P/E ratio of 202,809 is probably just shy of FMV.

Apple is gaining lots of experience as a maker of generic commodities and has an absolutely sky high, overflowing stash of lithium ion batteries sitting around, so that should come in handy.

Wed, 02/19/2014 - 18:19 | 4454538 fonzannoon
fonzannoon's picture

Teslapple? 

Wed, 02/19/2014 - 18:34 | 4454596 NoDebt
NoDebt's picture

Not gonna happen.

Wed, 02/19/2014 - 19:01 | 4454704 Spastica Rex
Spastica Rex's picture

iCar sounds sexy and premium.

Kind of like LeCar.

Wed, 02/19/2014 - 19:15 | 4454754 Boris Alatovkrap
Boris Alatovkrap's picture

iCar is to LeCar as is iPad to Tampon? Or is it "napkin"?

Wed, 02/19/2014 - 19:57 | 4454900 Freddie
Freddie's picture

BMW already has that locked up.  The i3 and i8.  They will be out this year.  The i8 towards the end of the year.  There is also supposedly an i5 in  development.

Wed, 02/19/2014 - 18:36 | 4454608 max2205
max2205's picture

APPLESLAW

Thu, 02/20/2014 - 00:32 | 4455974 PT
PT's picture

Tepple?  Tapple?
Apple sauce?  Apple Pie? 

Wed, 02/19/2014 - 18:36 | 4454601 aVileRat
aVileRat's picture

Nah, merge with Sodastream, then do a buyout of HLF. Then do a share buyback with a bond offering. then merge with APPL and FB. Then buy Amazon.

Call the company

The AMZ'ing Bubbly Apple-life: Tesla Boogaloo

market the equity as an 'lifestyle platform' where every "like" can buy you 100 Zuck-coins that become car fuel. Have it replace 40% of the market-cap of the DJA.

I will take my customary 3% advisory fee and shit, throw in some broker warrants and a Mary Meeker board seat.

On a more serious note, TSLA is pricing in the Chinese market which is beyond most sell side reporting estimates due to the inability for a BAML analyst to read chinese let alone figure out the backorder demand for the cars in China. The reason for the demand in china ? If you want to own a car (and everyone does over there) the average wait list for a  set of plates is 4 years. If you buy a tesla ? 2 months.

That magic market General Motors & Toyota want to unload last years inventory into ? it just went foof.

THIS BEING SAID: Do not fucking buy-into some MOMO technical chart bottom. This is not anywhere close the time to get into this story, it's either going to be the new Delorian or the new GM. binary option play at this point. You either believe Chinese are going to buy this with the rabid ferocity of Samsung knockoffs or not. If not, there is a great deal on Irish automotive plants and 4x P/E gold miners. Only invest in what you are comfortable taking home to mother (or your LP/myRA account holders).

 

 

 

Wed, 02/19/2014 - 18:16 | 4454533 Smegley Wanxalot
Smegley Wanxalot's picture

Burst'em Young .... a subsidiary of Ernst & Young.

Wed, 02/19/2014 - 18:23 | 4454555 Freddie
Freddie's picture

When the SHTF - these will be cool.  Any libs and elites driving them will be prime targets for a Molotov.   They will be able to take out a city block.

Wed, 02/19/2014 - 19:27 | 4454812 Freddie
Freddie's picture

This is Worldcomm and Enron accounting.  What BS.

Wed, 02/19/2014 - 19:30 | 4454822 X_mloclaM
X_mloclaM's picture

"we could lose investor confidence in the accuracy and completeness of our financial reports, which would have a material adverse effect on the price of our common stock"

They must've meant over a long-haul average...

NEST

TWTRQ

 

Wed, 02/19/2014 - 17:54 | 4454441 Sudden Debt
Sudden Debt's picture

my ass will be fried at open... my god...

stupid lemmings who actually buy this crap...

Wed, 02/19/2014 - 18:00 | 4454459 ebworthen
ebworthen's picture

Sorry for your loss.

Those lemmings are dumb as rocks but they have sharp teeth and the FED herding them.

Wed, 02/19/2014 - 18:02 | 4454468 johnQpublic
johnQpublic's picture

but they just had six people on CNBC pimping this ?

what could possibly go wrong?

with the stock that is

the cars are gonna burn in place but the stock should be fine

Wed, 02/19/2014 - 18:05 | 4454485 wallstreetapost...
wallstreetaposteriori's picture

I wonder if Fonestar ever got his Tesla...... with all those diminished bitcoin profits?  If he did then you can definetly short TSLA.

Wed, 02/19/2014 - 18:05 | 4454484 slotmouth
slotmouth's picture

I'm pretty sure most of the buying pressure comes from covering short sellers. This is a toy for traders and HFT, if you can't watch your screen 24/7 you shouldn't touch this stock long or short.

Wed, 02/19/2014 - 18:07 | 4454495 silverserfer
silverserfer's picture

diddn't you JUST buy those puts? 

Wed, 02/19/2014 - 18:13 | 4454518 Sudden Debt
Sudden Debt's picture

like 2 hours ago :)

Wed, 02/19/2014 - 19:36 | 4454841 skwid vacuous
skwid vacuous's picture

bought a few too it was hard to resist, i had visions of this opening down like $75... oh well

Wed, 02/19/2014 - 18:08 | 4454499 GooseShtepping Moron
GooseShtepping Moron's picture

Don't worry, the 2014 Model S's will come with flux capacitors factory standard, so you can go back in time and nix that trade. That is, if the battery can supply the 1.21 gigawatts. In any case, it's not a far cry from how this company seems to operate.

On a more serious note, the Tesla story is the biggest crock of shit I've seened all day. CNBC scewed the release and made it appear as if the stock was up on a top line miss and an EPS beat. Given my work history, I am hypersensative to the signs of a company gone catabolic and I wondered how in the hell this could be good news. Then they edited their story and filled in the missing (non-GAAP) data. Something still seems pretty shady.

Wed, 02/19/2014 - 18:14 | 4454521 ejhickey
ejhickey's picture

CNBC =  CONSPIRATORS NOW BROADCASTING CRAP

Wed, 02/19/2014 - 18:26 | 4454564 Freddie
Freddie's picture

Something still seems pretty shady.

Ya think?  This is an O company with an O CEO and it will be protected at all costs.

Wed, 02/19/2014 - 18:39 | 4454621 negative rates
negative rates's picture

Well that's the problem, all those zero's don't add up to much in the long run. But you put a one in front of them and lookout, they suddenly have value.

Wed, 02/19/2014 - 18:19 | 4454537 Groundhog Day
Groundhog Day's picture

I was hoping for you SD,  I feel your pain....been their just too many times.  Maybe they will fuck up the conference call and you will be able to reduce the damage

Wed, 02/19/2014 - 17:56 | 4454445 TheRideNeverEnds
TheRideNeverEnds's picture

Hey man, they didn't lose as much as they were expected to lose.  Totally justifies the stock going up another 10%+ from all time highs after being up 70% this quarter. 

 

Gotta do something with all that money from the sidelines and I see green shoots!

 

Wait till you see what the stock does should they ever get to break even!  What do you think, print 300 by next cycle? 

Wed, 02/19/2014 - 18:03 | 4454470 johnQpublic
johnQpublic's picture

is green a cop?

i mean, green keeps shooting.....

Wed, 02/19/2014 - 19:18 | 4454769 skwid vacuous
skwid vacuous's picture

Still calling for 1900 ES by Friday at 4pm?

Wed, 02/19/2014 - 18:01 | 4454450 ebworthen
ebworthen's picture

Stationary battery packs for the solar power industry?

Sales of Tesla in struggling China?

Sounds like a Solyndra/Foxconn hybrid.

Wed, 02/19/2014 - 17:59 | 4454451 Winston Churchill
Winston Churchill's picture

Pushing warranty claims forward three years, and booking
them as sales now.
Trying to work out how much they actually losing per car
sold, is as easy as deciphering FOMC minutes.
Never mind ,they will make it up on the quantity. Ovey.

Wed, 02/19/2014 - 18:00 | 4454456 vote_libertaria...
vote_libertarian_party's picture

Non-GAAP my trading profits are $100000000000000000000000000000000000000000000000 per quarter

Wed, 02/19/2014 - 18:01 | 4454464 DavrosoftheDaleks
DavrosoftheDaleks's picture

Amazing gross margins.  CHINA will be their biggest market as they don't have to deal with the bullshit dealership situation like they do in the US.  They also are priced competitively in CHINA unlike the US.  I wouldn't short this, TWTR on the other hand....

 

Wed, 02/19/2014 - 18:02 | 4454467 J Pancreas
J Pancreas's picture

I remember looking at shares of TSLA at $30 and thinking that was crazy expensive compared to their production value and capex needed to expand the brand. Here we are over $200 and I feel this market is Still drunk on The Full-Retard Yellen Energy Drink.

Wed, 02/19/2014 - 18:04 | 4454481 Yen Cross
Yen Cross's picture

   I saved this article from the other day, and this looks like the perfect time to post it. I wouldn't be surprised to see similar articles about Tesla in the next few years.

    Court clears sale of hybrid car maker Fisker to China's Wanxiang | Reuters

Wed, 02/19/2014 - 18:07 | 4454497 ebworthen
ebworthen's picture

Fisker?  They make scissors, right?

Wed, 02/19/2014 - 18:15 | 4454529 Yen Cross
Yen Cross's picture

  Scissors and Road Flares. :-)

Wed, 02/19/2014 - 18:21 | 4454546 Ness.
Ness.'s picture

I thought they made cat food, no?

Wed, 02/19/2014 - 18:08 | 4454500 dexter_morgan
dexter_morgan's picture

What should be up is down - what should be down is up! Put it all in a lockbox.

Can tell that count Algore is involved with this company. They're all just numbers Jerry..............

Wed, 02/19/2014 - 18:09 | 4454504 ejhickey
ejhickey's picture

Stupid me!  for all these years, i have been asking dor a raise based on what i HAVE DONE, you know those accomplishments that have ACTUALLY taken place.

NO MORE!   i realize all of those things i did are just HISTORY, DRY, DUSTY HISTORY.   from now on i am taking my cue from Tesla and am asking for a raise based on what i EXPECT  to accomplish BEFORE  i do it.  that way i can get the money now when i want it.   i just hope we have a change in management before next year rolls around or that my anticipated performance review somehow gets lost.

Wed, 02/19/2014 - 18:12 | 4454517 LawsofPhysics
LawsofPhysics's picture

I remember when ZH was shocked that 58 billion was huge for a reverse repo.  Shit, the Fed repo for today was 83 billion.

Wed, 02/19/2014 - 18:29 | 4454574 NOTaREALmerican
NOTaREALmerican's picture

iPad, iPod, iPhone, iPc, iCar...   What's next  iHouse?  

Wed, 02/19/2014 - 18:32 | 4454576 Al Huxley
Al Huxley's picture

Facebook just dumped $3 in after-hours.  They just bought WhatsApp.  Nice, too bad if you're long and don't have access to outside-market trading.  Sorry for anybody dumb enough to buy or sell at market first thing tomorrow.  What a fucking joke.

Wed, 02/19/2014 - 18:35 | 4454604 TruthInSunshine
TruthInSunshine's picture

Facebook turning into "Grandparents Connection" and is being abandoned at light speed by all the kewl kids.

Wed, 02/19/2014 - 18:30 | 4454581 RaceToTheBottom
RaceToTheBottom's picture

Do MBA schools even teach GAAP anymore?  Why?

It only produces bad news, why produce it then?

Wed, 02/19/2014 - 19:22 | 4454782 UggSmash
UggSmash's picture

Ugg no understand. Ugg read counting books. Counting books say revenue important, fake revenue bad. Fake revenue make liar. Ugg no understand why so easy to lie about revenue. Ugg so confused...

Ugg think buyers live in fantasy land, ignore lying counters. Then get surprised when Tesla go "poof". Ugg laugh SO HARD!

Wed, 02/19/2014 - 18:44 | 4454642 delivered
delivered's picture

Trust me when I say, the lease accounting is your smoking gun. I spent years working in the high tech equipment leasing industry and it is absolutely amazing what you can do with the accounting numbers by changing the slightest "accounting estimate" related to future residual values (i.e., the value of the auto at the end of the lease period), warranty expenses, etc.. Forget the non-GAAP revenue figures as these are complete bullshit. The problem for Tesla will be when they have to fully disclose and record warranty expense and being upside down on end of lease residual values at the end of the terms. And remember, they have no historical data, trends, facts, etc. to support their estimates as in the insurance world, this is referred to as having "green claims" (very young, immature claims that have not fully developed over time). What are the value of Tesla's cars going to be in three years is anyone's guess but I would point to two facts that are going to drive the value lower:

- First, competition from all auto manufacturers is going to drive the value of their cars lower. With significant excessive inventory levels from GM, Ford, and others, prices will drop. Even though these companies don't compete directly with Tesla, they will drive auto prices down throughout the industry which will have an impact on Tesla's models.

- Second, the people that buy Tesla's are generally very wealthy and at the top of the food chain. They will always demand newer, better, higher performance autos. So what does this mean for Tesla when they take back all of the autos coming off lease in 3 years, more than likely the residual values they've estimated will be well below what's needed to support their original guarantee. But don't worry, Tesla will take this "hit" all at once, below the EBITDA line, and present non-GAAP earnings that of course, beat yet again.

I will tell you this, the boys at PWC are going to be very nervous about this account in the coming years as they've been hoodwinked by Tesla management into signing off on the "accounting estimates" to drive current results. This game has been played so many times and never ends well for anyone except the executives/insiders that got out early. Just ask the partners at AA a decade ago about how that ended for them after the Enron implosion.

So the logical conclusion would be to short Tesla or at least, buy some puts. Yes logical but then again, nothing is logical in this market as time and time again, the shorts/bears get creamed by the forces of the Fed that just simply cannot afford another market implossion (as three in 15 years would be a killer). 

I'm an expert in accounting and how "estimates" are used to "massage" and "manage" financial results. But now that the coyotes (Wall Street/CBs) are in-charge of the hen house (accountants), its becoming increasingly difficult to find reliable financial results to base a sound decision on. Just the fact that Non-GAAP is now becoming the preferred measure on which to value companies should tell you everything you need to know about how dangerous the market has become. Basically when Non-GAAP figures are used, we have truly entered the Twlight Zone or better yet, the Roaring 20's as you can basically make up your own financial results now. FUBAR is the only thougth that comes to mind!

Wed, 02/19/2014 - 19:28 | 4454816 UggSmash
UggSmash's picture

Ugg think Bag-Head-delivered, right. One day, Tesla get returns from customers, then counters must fix lies. Then Tesla Gambler get very, very sad, because revenue has big disappear. Then Tesla Gambler call it "surprise". Ugg still laugh very hard. 

Wed, 02/19/2014 - 18:57 | 4454689 pitz
pitz's picture

Weird, isn't it, that the gold miners have to take big GAAP-driven write-downs when ore prices fall and reserves become questionable.  And investors punish the companies harshly.  But when Tesla does it.... 

Wed, 02/19/2014 - 19:01 | 4454702 disabledvet
disabledvet's picture

So it's not Ford that is the "model" (as in business model) here but this one in my view: http://en.wikipedia.org/wiki/Chrysler

basically one model..."the Imperial"...which sold the entire brand.
k-car was the worst thing ever. (leaving aside that it really was a piece of junk.) I still haven't heard anything bad about the actual Tesla "car" from the owners.

That ain't true of literally every other car on the market.
https://www.youtube.com/watch?v=K-34Fdtg1dI

Wed, 02/19/2014 - 19:08 | 4454735 EtTuEtTu
EtTuEtTu's picture

As reliable as an efficient market:

 

A Sr. Editor at Edmunds reported this today:

http://www.edmunds.com/tesla/model-s/2013/long-term-road-test/2013-tesla...

 

Dutch auto journalists don't seem to fair much better.

http://www.youtube.com/watch?v=dfJ0wKMrSO8   

 

Tesla, unsafe at any speed

Wed, 02/19/2014 - 19:13 | 4454752 kevinearick
kevinearick's picture

relativity in a circular firing squad requires demographic acceleration...

Wed, 02/19/2014 - 20:55 | 4455098 InanimateCarbonRod
InanimateCarbonRod's picture

Short squeeze..nothing more, nothing less. Look who holds a large chunk of stock.  And if anyone has any memory of what other tech wunderdarling that they used to own way back when several times as it went up and down like a yoyo before finally going kersplat....

Fidelity.  RIM.  Celestica.  Any number of 2000/2001 internet stocks.

Just sayin'.

Wed, 02/19/2014 - 21:55 | 4455336 crash commando
crash commando's picture

Can I turn in my non-fucking-GAAP numbers to the IRS?  40% market cap of GM?  Fuck this house of mirrors!

Wed, 02/19/2014 - 22:20 | 4455448 highwaytoserfdom
highwaytoserfdom's picture

Shorting tomorrow....   

Thu, 02/20/2014 - 00:20 | 4455937 bullwinkle
bullwinkle's picture

Yeah, you go ahead an do that.  Take zerohedge financial advice.  I did.  It sounds reasonable and well thought out at the time, until you lose your shirt.

I'm a car guy.  Know lots of other car guys.  We think the Tesla is the greatest thing since bacon.  So does the automotive press for the most part.

Zerohedge apparently knows everything about everything.  Never heard so much anti-Tesla bullshit anywhere else.  Christ, I hate Apple but you could mistake me for a Genius compared to the Tesla hate that zerohedge posts.

Thu, 02/20/2014 - 04:03 | 4456411 Sudden Debt
Sudden Debt's picture

I'm a car freak myself and so are my friends.

When we drove the Tesla, which we where all looking forward to, it was like taking a cold shower.

 

At 90Mph the back wheels start losing traction, the steering becomes creepy at 120Mph and the interior of the car is like a cheap Ford car with no center console, nu cupholders, no armrest...

And if the car breaks down, you need to call the Tesla engineer to come over. A normal car repair man can't touch it. You need a high skilled technical electrician.

There are some advantages to the car, it pulls up like a porche. But the car doesn't feel safe and there's a total lack of luxery. And I need that if I pay 120.000 euro's for a car.

And than there's the touch screen in the car that's way to complex...

And the radio... Again... for a 120.000 euro car I expect AT LEAST a Bose System. And they put in a 50$ sound system.

And than there's the detail on the car. I mean, again, for 120.000 euro I expect perfection. And there where loose rubbers, seals that didn't fully fit... Not good.

Than the interior of the car again. CHEAP SEATS.

It's not what it should be.

 

And than the company. A total lack of the right kind of marketing. And that's why it will go the Phillips, NCR, IBM and other inovator's way. Just like Apple will go down to.

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