ronnie993tt

Time for a little controversy......

http://business.financialpost.com/op...4-03105e49a514

Hula

What the article doesn't mention is Tesla's switch from unit accounting to program accounting. When a new product is developed, it takes a huge amount of capital for R&D and initial production. With unit accounting, those expenditures are reported as losses. With program accounting, those expenditures and spread out over the life of the product. Nothing wrong with program accounting. Boeing uses it when developing new aircraft but it takes a lot of forecasting. But Boeing has been building aircraft for 100 years so they are in a good position to predict future cash flows. They have an idea of how many aircraft will be produced over its lifetime and can predict reduced production costs as manufacturing matures. Tesla doesn't have this history so they are making a lot of assumptions. Are the profits Tesla reporting accurate? Maybe. Maybe not. It depends on those assumptions.

(Caveat - not an accountant. Last accounting class I took was over a decade ago.)

PPo

The Tesla Model S - a car for tech C-level Executive that is not really a car guy.

I cannot see how Tesla can continue to survive in the future. I do make mistakes, so don't crucify me for an opinion... but I just can't see it...

jmh981

Not sure they can when all the big boys enter the EV thing in a big way. They can outproduce, out-engineer, out-buy and undercut with much bigger margins and more capital to play with.

theiceman

Last time I was in California there were model S cars everywhere. I get it must be heavily subsidized but gees there were a lot of cars.

hoffa

Not to stir the pot, but I have a Model S that was just t-boned. I had my 6mo, 3yr and 5 yr old in the car + my wife. The safety rating lives up to it's reputation. I had loved it before that experience

It is an expensive car and I definitely miss my 911, but a Panamera or similar car wasn't in the cards (size) and the Cayenne was a little snug (wish it had a 3rd row!).

I am not beholden to the brand, so when some of the other EVs come out from other brands, I would absolutely consider it. For a people mover, I don't miss the gas engine. As the kids grow up, I want my 911 back

theiceman

so when you got t boned .. what did you replace it with ? that tells a story no ?

altesporsche

I don't like them at all. When I was living in Norway a few years ago they were everywhere and the govt there also heavily subsidizes them. But I don't like the interior feel at all, they feel cheap yet are quite expensive.

Im particularly bias against EV anyways :P

theiceman

it is not us that buys Teslas , it is the generation coming in behind us. Im sure they are not going to be able to build type 3s fast enough.

ronnie993tt

The generation behind us will not want the disadvantages nor be able to afford the huge premium vs good old petrol. By the time they get their inheritance Tesla will be long gone.

theiceman

The usual narrow minded Ronnie view of the world.

The iphone generation are early adopters of technology and are much more adaptable than you old folk. They are also far more social conscious of climate impact and what is happening to their planet than you could ever imagine.
Tesla is not likely to go anywhere, and even if they do their technology has changed the world and alternate fuel vehicles are coming, and the next gen will buy them.
But I am sure people thought horses would never be replaced too and the next gen could never afford ridiculously expensive automobiles.

hoffa

its being repaired much to my dismay - 55k repair :P BUt I would have got another Model S in a second.

theiceman

Well there you go. That has to be a pretty ringing endorsement !!!

Wow 55k repair. Must have rolled off the assembly lines that a pretty price tag.

wc11

Most of the generation "behind us" don't/won't buy cars.
Their moms & dads buy it for them.

ronnie993tt

Economics always determines the winning technology. That's why gas displaced electricity and steam over a century ago. You have the horse analogy backwards. Hey, and you do realize climate change is an anti-capitalist government supported fraud designed to allow socialists to pick your pockets don't you?