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Tesla Calls WSJ Report "Fundamentally Wrong" (cnbc link)

Tesla Calls WSJ Report "Fundamentally Wrong" (cnbc link)

Tesla quote: "This reporting is fundamentally wrong and misleading. We are still in the beginning of our production ramp, but every Model 3 is being built on the Model 3 production line, which is fully installed, powered on, producing vehicles, and increasing in automation every day. However, every vehicle manufacturing line in the world has both manual and automated processes, including the Model S and Model X line today. Contrary to the Journal's reporting, this is not some revelation. As we've always acknowledged, it will take time to fine-tune the line for higher volumes, but as we have also said, there are no fundamental issues with Model 3 production or its supply chain, and we are confident in addressing the manufacturing bottleneck issues in the near-term. We are simply working through the S-curve of production that we drew out for the world to see at our launch event in July. There's a reason it's called production hell."

https://www.cnbc.com/2017/10/09/tesla-says-report-it-builds-model-3-by-h...

andy.connor.e | 9 ottobre 2017

Typical media. When media tells you something, thats the indication you have to find the truth yourself.

Coastal Cruiser. | 9 ottobre 2017

Thanks for the link and summary.

According to the report, Goldman Maintains its sell recommendation.

Ignore the greedy investment banking firm behind the curtain of Fear Uncertainty and Doubt.

All is well.

Mike83 | 9 ottobre 2017

Nothing but the usual BS trying to get people to sell so the panicking can cover their gamble.

ReD eXiLe ms us | 9 ottobre 2017

Anytime there is a 'SELL' recommendation that simply means they already have someone lined up to BUY.

yaheya | 9 ottobre 2017

I am piling up on my TSLA stocks today!

KP in NPT | 9 ottobre 2017

When it comes to Tesla, WSJ is fake news.

What I find hilarious is all this pearl clutching - what do people think? If the 3 is late, Tesla will fold? Look back on this time a year from now and tell me any of this matters.

mntlvr23 | 9 ottobre 2017

@KP +1

Coastal Cruiser. | 9 ottobre 2017

I was wondering where u were.

deezeela | 9 ottobre 2017

when Model 3 robots slow down to 1/10th of the normal speed, from the video, seems like Robot is even slower than human.

Come on, big mouth... take care of your own sh$t, before try to wipe someone's ass. You have half million customers are waiting to pay you. With more Model 3 competitors coming up, you'd better take care of the "production hell' NOW!

Frank99 | 9 ottobre 2017

Nice civil discourse right there, from another armchair industrialist.

KP in NPT | 9 ottobre 2017

Haha @Cc - I was camping in Acadia the past 5 days. Didn't check in much, other than at Supercharger stops to/from. (like now.) :-)

burdogg | 9 ottobre 2017

Yeah, and now because of such report, now there is a firm looking into securities fraud - man you can't make this stuff up. This world is so screwed up.

Pomerantz LLP is investigating claims on behalf of investors of Tesla, Inc. ("Tesla" or the "Company") (NASDAQ: TSLA). Such investors are advised to contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888-476-6529, ext. 9980.

The investigation concerns whether Tesla and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.

[Click here to join a class action]

On October 2, 2017, in a press release detailing the Company's vehicle production and deliveries for the third quarter of 2017, Tesla cited "production bottlenecks" as the reason for its failure to meet its production goals for its Model 3 sedan. On October 6, 2017, post-market, the Wall Street Journal published an article reporting, in part, that "[u]nknown to analysts, investors and the hundreds of thousands of customers who signed up to buy it, as recently as early September major portions of the Model 3 were still being banged out by hand, away from the automated production line, according to people familiar with the matter."

Following this news, Tesla's share price has fallen as much as $10.75, or 3.01%, during intraday trading on October 9, 2017, the following trading day.

burdogg | 9 ottobre 2017

If I wasn't clear by the way - this is just ridiculous! There are times it would be nice to be able to countersue those that seek for BS damages.

El Mirio | 9 ottobre 2017

@burdogg,
i think this rule would benefit the U.S. greatly.

quote
In civil cases, most European countries have adopted a “loser pays” rule. If you sue and lose, you have to pay the other side’s costs. This obviously makes people think a lot harder before they decide to file a suit.
unquote

http://www.motherjones.com/kevin-drum/2010/08/why-we-sue/

burdogg | 9 ottobre 2017

I totally would agree with that kind of rule - maybe cut down on all these BS suits - not just this one, but there are way too many frivolous suits.

That being said - sure there are corporations that pull crap and need to be held accountable. But something as much as a projection of a ramp up of a vehicle production and missing targets because something came up, or just couldn't even move through the production as fast as they thought is just plain dumb. Especially when they start using the Wall Street Journal and some anonymous source as their basis for looking into a suit.

bmz | 9 ottobre 2017

In a US Federal court, a prevailing defendant can file a motion pursuant to Federal rule 54 (d) to collect attorneys fees and other litigation expenses against a plaintiff who has filed a frivolous lawsuit.

El Mirio | 9 ottobre 2017

The worst are the patent trolls. "The Patent Scam" is a good documentary, makes your blood boil how these guys build a multi-billion industry perpetually suing small biz for BS patent infringement. Knowing fully well these small companies don't have enough money to fight the lengthy lawsuits. Just scum!

dd.micsol | 9 ottobre 2017

Will elon flip the board on the class action lawsuit by bronstein? I think it will go away in 48 hrs due to bad journalism.

bmz | 9 ottobre 2017

El Mirio +1

Mike83 | 9 ottobre 2017

I have seen numerous lawsuits against many publicly traded companies but investors have to sign on to it. My theory is they can scare some longs to cover someones short position probably as some did today. They may have already achieved their goal by making a short covering profit. Then poof, you never hear of it again as it usually is for outlandish claims.
If they could connect the short sellers to the plaintiffs and sue then you talking real money.
But I often find it is a great time to buy.

I am not a lawyer and this is my theory.

El Mirio | 9 ottobre 2017

@bmz unimaginable how these small companies got trolled, below link contains some mind blowing samples

https://www.thepatentscam.com/victims

95dawg | 9 ottobre 2017

Article based on hear say and Google search results written by an associate writer with journalism/finance degree who likely has never seen the inside of a factory let alone stand up a brand new one producing cars. Mmmmkay.

Shock | 9 ottobre 2017

" every Model 3 is being built on the Model 3 production line, which is fully installed"

This is obviously untrue. The production line is not "fully installed" because they are patching parts of it with a manual process--a process that does not represent the final, completed point of the production line. In other words, either the person who wrote that is lying or they intend these aforementioned "hand made" processes to be an integral, and ultimate part of the production line. So these processes now being done by hand will continue to be done by hand?

"Yeah, and now because of such report, now there is a firm looking into securities fraud - man you can't make this stuff up. This world is so screwed up."

If you have a publicly run company and make false statements it is a big deal. These people are trying to figure out if false statements were made.They are not concluding they have been made, nor should their investigation lead to that conclusion (unless the investigation leads to that conclusion). All we know is that Tesla had given some detailed production estimates and has missed them wildly (80-90% short). That's not the problem. The problem as always is what did they know, when did they know it, and when did they tell everyone they knew it.

ReD eXiLe ms us | 9 ottobre 2017

For those who maintain I am full of [BOLSHEVIK] whenever I point out that Tesla must be very careful to avoid securities violations or accusations of fraud? Here you go.

El Mirio: I think there is a variation of the Patent Scam that similarly targets small businesses but on a different basis, still with the expectation they will settle out of court personally, or have their insurance company pay. I despise extortion in any form and I would absolutely countersue, unless I were practically destitute. In which case they couldn't get a dime out of me anyway, and wouldn't have sued me anyhow.

What truly peeves me are laws that don't allow anyone on the bench to 'judge' on the one hand, and judges that aren't willing to judge anything on the other. Hands tied by minimum sentences... Or unwillingness to 'make new law' by setting a precedent.

The goal should be justice. When someone has been wronged? Do the right thing. When someone brings a silly case? Kick them out with prejudice and fines.

El Mirio | 9 ottobre 2017

"When someone brings a silly case? Kick them out with prejudice and fines."

Why don't the Judges do that? It seems more often then not they even allow plaintiff to go in lengthy discovery process allowing this type of costly "fishing expedition" is just unjust.

ReD eXiLe ms us | 9 ottobre 2017

El Mirio: I think they used to... But then their cases began to be overturned upon further review, and on appeal, when it was learned those judges were 'on the take' or prejudiced against plaintiffs for religious, cultural, or ethnic reasons, or because the defendant was their cousin, uncle, aunt, nephew, business partner and stuff. So judges often opt to 'just let them play' so that all 'i's are dotted and every t is crossed. You basically have to get a plaintiff to admit their case is bogus and won't stand up in court to dismiss a case now.

minervo.florida | 10 ottobre 2017

deezeela
"Come on, big mouth... take care of your own sh$t, before try to wipe someone's ass. You have half million customers are waiting to pay you. With more Model 3 competitors coming up, you'd better take care of the "production hell' NOW!"

These competitors are so far behind Tesla, they will pay a ton more for batteries and NO charging infrastructure.
Production hell will be on going for another year with improvements every week. Every issue can take weeks to iron out, like a bad part, the vendor has to make the fix and that alone can take weeks.

Mike83 | 10 ottobre 2017

https://www.cnbc.com/2017/10/10/dow-jones-posts-fake-headlines-claiming-...

Fake news from dow jones which Murdoch owns along with the WSJ.
I don't spend too much time on fake news other than to call them out.

carlk | 10 ottobre 2017

@Shock Talking about false statement what is your opinion of person making false accusation on a public forum?

burdogg | 10 ottobre 2017

Been thinking as there is so much controversy out there - but why not - Don't I have a second amendment right to say whatever I want? I mean, it seems to be the thing now, I can express my right and the rest of you can just suck it - you can't do anything to me and if so, it is not right because I am just utilizing my right! (sorry, whole kneeling thing for something I hold dear and treasure is getting really to me at this point. To claim I can voice that right - sure you can, but they also want to claim that there can be no retaliation either, which is NOT what the amendment states)

ok, done, moving on - not the place, but all this talk just opened the door - sorry. To me, there are other ways to get your message out and do good and make change then this.

rxlawdude | 10 ottobre 2017

"Don't I have a second amendment right to say whatever I want?"

If you say it with lead, apparently yes. I think you meant the First Amendment right to free speech.

ReD eXiLe ms us | 10 ottobre 2017

There are people who repeatedly claim every single Amendment to the Constitution of the United States of America is invalid. Luckily, I have the right to call them idiots. Sure, there are people that believe I run the risk of being punched in the nose for calling idiots ... 'idiots'. But then there are laws and stuff that are meant to govern slander and libel and assault and battery too. Balance is the key.

No one has to stand during the National Anthem, or salute the U.S. Flag, just as they don't have to courtsey to the First Lady, or shake hands with the Governor, or hold the door open for the elderly or infirm.

We are Americans. That means we have no class. We are not bound to the land. We have not sworn fealty to the banners of Lords. We are the Wildlings that Do Not Kneel to the whims of Southern Kings. This is not a Feudal society where oligarchs rule (thank God). And though there are traditions, and things done out of respect, and actions taken for valor or merit or kindness -- none of it matters when people have the ability to choose for themselves.

When someone chooses to protest what they perceive as injustice, what they would like to call attention to, what they believe all of us should work harder to correct for the benefit of future generations... Can anything be more... AMERICAN?

rxlawdude | 10 ottobre 2017

"We are Americans. That means we have no class."

No comment as to how right-on that applies to the poster above.

burdogg | 10 ottobre 2017

rxlawdude - thanks - that's what I get for getting several issues mixed together into one :) Brain going all over the place. Gave me a good laugh though. And I can be called an idiot - I just proved it with my post :)

jordanrichard | 10 ottobre 2017

No, one doesn't have the right to say whatever they want. Get on a plane and yell bomb. Let me know how that turns out. Then when you get out of prison, and take in a movie, yell fire. When get out of prison for the second time.............

burdogg | 10 ottobre 2017

Yep, helps further the point, you can say what you want, you just don't get to avoid the consequences, whether it be jail, or even loss of job.

Anyway, sorry, didn't mean to completely derail this post, but sometimes it would be nice if the media was held accountable too - instead of...some random source (you know, my best friends, girlfriends, father's friends wife's best friend said).

Tropopause | 10 ottobre 2017

Apparently Morgan Stanley see's things at Tesla differently than Goldman:

Tesla (TSLA) has received a price target increase from a Wall Street analyst on the strength of its infrastructure development, industry expansion and Tesla Model 3 launch milestones. Morgan Stanley analyst Adam Jonas raised his price target on Tesla to 379 from 317, a 9% premium from where the stock currently trades. He maintained a rating of equal weight. Compared to other makers of electric vehicles, Jonas wrote, Tesla has made the biggest proprietary investment in superchargers and destination chargers globally. Tesla expects to have 10,000 supercharging stations globally by the end of this year, up from about 6,250 currently. Jonas estimates Tesla will have an additional 15,000 "destination chargers," which are plug-in attachments at hotels, restaurants, shopping malls and other locations.

Tesla is in the early stages of ramping up production of its new Model 3 sedan, which is designed for mass-market appeal. Tesla has denied recent reports of Model 3 production issues and difficulties, saying "there are no fundamental issues with Model 3 production or its supply chain."

mntlvr23 | 10 ottobre 2017

Morgan Stanley & Tropopause +100

ReD eXiLe ms us | 10 ottobre 2017

burdogg: I think that in 'Conan: The Barbarian' (1984) it was something like, "My Brother's Sister's Cousin..." that was the source of information. By the way, when was this thread ever 'on the rails' anyway?

burdogg | 10 ottobre 2017

ReD - I was going more for the Ant Man style about a job that .... :) and figured it needed some embellishing as this whole thing smelled fishy :)

rails - wait, don't tell me the Model 3 can only be driven on rails now!

rxlawdude | 10 ottobre 2017

@ReD, is this the quote you're thinking of?
Dark Helmet: I am your father’s brother’s nephew’s cousin’s former roommate.
Lone Star: So what does that make us?
Dark Helmet: Absolutely nothing

Spaceballs (1989). A true classic.

ReD eXiLe ms us | 11 ottobre 2017

It was apparently 'Conan: The Destroyer' (1984) that I was thinking about. One of these decades I should probably watch 'Spaceballs' (1987) again. I didn't like it as much as Mel Brooks' movies with Gene Wilder. I just watched 'Blazing Saddles' (1974) again night before last.

"I'm going off the rails on the crazy train!"

Rutrow | 16 ottobre 2017

Yup! That's a "I stand for the National Anthem" shirt he has on.

1st Amendment, Hell Yeah!!!

https://imgur.
com/lyZF1Y4