Welcome Guest [Log In] [Register]
Welcome to The New Coffee Room. We hope you enjoy your visit.


You're currently viewing our forum as a guest. This means you are limited to certain areas of the board and there are some features you can't use. If you join our community, you'll be able to access member-only sections, and use many member-only features such as customizing your profile, sending personal messages, and voting in polls. Registration is simple, fast, and completely free.


Join our community!


If you're already a member please log in to your account to access all of our features:

Username:   Password:
Add Reply
Tesla
Topic Started: Mar 29 2018, 06:58 AM (57 Views)
George K
Member Avatar
Finally
Is this company in trouble?

Quote:
 
Tesla Inc shares fell sharply again on Wednesday, reeling from a credit downgrade of the electric car maker by Moody's Investors Service, federal probes of a fatal crash and concerns about Model 3 production.

Shares tumbled 9 percent before ending down 7.7 percent at $257.78. On Tuesday, Tesla tumbled 8.2 percent to its lowest close in almost a year after the U.S. National Transportation Safety Board (NTSB) opened a field investigation into a fatal crash and vehicle fire in California on March 23.

On Wednesday, a second federal regulator, the National Highway Transportation Safety Administration (NHTSA), said it was sending a team to California to investigate the crash.

Late on Tuesday, Moody’s Investors Service downgraded Tesla’s credit rating to B3 from B2, citing "the significant shortfall in the production rate of the company’s Model 3 electric vehicle.” It also noted “liquidity pressures due to its large negative free cash flow and the pending maturities of convertible bonds.”

Tesla has $230 million in convertible bonds maturing in November 2018 and $920 million in March 2019.

Moody’s said its negative outlook “reflects the likelihood that Tesla will have to undertake a large, near-term capital raise in order to refund maturing obligations and avoid a liquidity shortfall.”

It said Tesla's weekly production target is now 2,500 Model 3 vehicles by the end of March, down sharply from its year-earlier target of 5,000 per week by the end of 2017. Tesla's weekly target for the end of June is 5,000.

Tesla declined to comment on the downgrade. The company plans to provide an update on Model 3 production next week.

Tesla shares have experienced big swings in the past, as worries about losses have vied with enthusiasm for Chief Executive Elon Musk's ambitious plans.

The sell-off has left Tesla's stock market value at $44 billion, below General Motors Co's $49 billion. Palo Alto, California-based Tesla has at times had a larger market value than GM, the largest U.S. automaker by vehicle sales.
If the things I've read about shoddy workmanship and poor-quality parts, this doesn't surprise me.
A guide to GKSR: Click

"Now look here, you Baltic gas passer... "
- Mik, 6/14/08


Nothing is as effective as homeopathy.

I'd rather listen to an hour of Abba than an hour of The Beatles.
- Klaus, 4/29/18
Online Profile Quote Post Goto Top
 
Axtremus
Member Avatar
HOLY CARP!!!
Hey, Tesla is now $5 billion cheaper than GM in market cap. What a bargain Tesla must in big trouble now! :help:
Offline Profile Quote Post Goto Top
 
Jolly
Member Avatar
Geaux Tigers!
1. Crappy workmanship.

2. Even if done well, urban car, only. Limited market, especially in the U.S.
The main obstacle to a stable and just world order is the United States.- George Soros
Online Profile Quote Post Goto Top
 
Jolly
Member Avatar
Geaux Tigers!
From the standpoint of how many Americans drive, cost and build quality, I've always thought this was the better auto than the Tesla 3.

http://www.chevrolet.com/electric/volt-plug-in-hybrid

No matter who builds it, this kind of hybrid delivers the range needed by most people.
The main obstacle to a stable and just world order is the United States.- George Soros
Online Profile Quote Post Goto Top
 
George K
Member Avatar
Finally
I would consider a plug-in hybrid if it weren't prohibitively expensive to get power into my basement garage.
A guide to GKSR: Click

"Now look here, you Baltic gas passer... "
- Mik, 6/14/08


Nothing is as effective as homeopathy.

I'd rather listen to an hour of Abba than an hour of The Beatles.
- Klaus, 4/29/18
Online Profile Quote Post Goto Top
 
Jolly
Member Avatar
Geaux Tigers!
I went up and built a LT Volt without very many bells and whistles. If the Federal Tax Credit still holds, I could buy that car for somewhere in the mid-20's.

The warranty on the batteries and electric drivetrain is 8 years/ 100,000 miles.
The main obstacle to a stable and just world order is the United States.- George Soros
Online Profile Quote Post Goto Top
 
« Previous Topic · The New Coffee Room · Next Topic »
Add Reply