Tuesday, September 25, 2012

"Tesla Cuts Rev View On Slow Model S Ramp; Shrs Slump" (TSLA)

In late pre-market action the stock is down 9% at $27.90.
From Eric Savitz at Forbes:
Tesla Motors shares are trading sharply lower Tuesday morning after the company sharply reduced Q3 financial guidance to reflect slower-than-expected production of the company’s Model S sedan.

“As our main focus is on quality, we have methodically increased our Model S production at a rate slower than we had earlier anticipated,” the company disclosed this morning in a filing with the SEC. The company said one issue is that “certain suppliers have experienced delays” in meeting the company’s demand requirements.

Tesla says that through September 23 it has produced 255 Model S vehicles, including 77 in the week ended September 23. Tesla says the goal is to reach weekly production of 400 units before the end of 2012, “which should enable us to produce more than 20,000 Model S vehicles in 2013.”...MORE
Anyone paying attention would have seen this coming, here are some of our recent posts:

August 14 
Elon Musk on Tesla: "...it's definitely going to be a tough six months," (TSLA)
July 18  
Tesla: Wunderlich Cuts To Sell; Says Q3 Forecasts At Risk (TSLA)
June 13 
What is Tesla Motors Worth? (TSLA)
Although it is smack dab in our Energy/Policy/Alt wheelhouse we have very few posts on Tesla.
On a personal level I didn't have much interest in government subsidized $100K playthings.
On the other hand, as an investment the stock always seemed to be in stronger hands* than the battery companies or other fashion-forward issues, poo-pooing it didn't seem like good advice for our readers.
So I didn't post much on TSLA.

The stock is down 25% from the $39.95 all-time high it hit back March 30 showing that it is not some irresistible force of nature and a very interesting look at the valuation arrived in yesterday's email.

From AltEnergyStocks:
Tesla's Troubling Risk-Reward Profile...