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Tesla shares dive after Consumer Reports yanks recommendation for Model S

latimes.com

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Re: Tesla shares dive after Consumer Reports yanks recommendation for Model S

#31

Post by encoderer »

beat wrote: post #23
encoderer wrote: post #19

Earlier quoted context omitted.

Tesla's PE in 2016 is forecasted over 130. For comparison bmw is under 10. Tesla is priced for perfection.

Tesla is a growth company that could be a giant. BMW is a stable old blue chip. Different market values entirely. At the individual car level, Tesla S is priced to match mid/high end sedans from BMW, Mercedes, and Audi, so that's the quality level they need to hit. And such quality isn't about reliability so much as fit and finish. Tesla is doing extremely well against very established competition in that regard.

Check out the PEG ratio, which factors in growth. Rapid and sustained growth is not guaranteed and bad press can inhibit it. But you need that growth to justify the valuation. Priced for perfection.

Re: Tesla shares dive after Consumer Reports yanks recommendation for Model S

#32

Post by karlkatzke »

outworlder wrote: post #14
skorecky wrote: post #9

Earlier quoted context omitted.

They address this in the article. > Tesla spokesman Ricardo Reyes said the Palo Alto automaker keeps in close communication with its customers to “proactively address issues, and quickly fix problems.”

Yeah, but do they? As far as companies go, I have a decent level of trust on statements by Tesla. But it is still a company, and that statement has to be independently evaluated.

I can only speak to anecdotes, but the three Tesla owners I know have been called by Tesla to ask the customer to bring the car to a service center so that Tesla could address something the onboard computer had reported.

Re: Tesla shares dive after Consumer Reports yanks recommendation for Model S

#33

Post by Lightbody »

outworlder wrote: post #14
skorecky wrote: post #9

Earlier quoted context omitted.

They address this in the article. > Tesla spokesman Ricardo Reyes said the Palo Alto automaker keeps in close communication with its customers to “proactively address issues, and quickly fix problems.”

Yeah, but do they? As far as companies go, I have a decent level of trust on statements by Tesla. But it is still a company, and that statement has to be independently evaluated.

My experience is that Tesla service means well, but so far they haven't completely solved my issues. They try though, and the car goes back to service November 3rd.

Fortunately, they give me a nice loaner vehicle (usually a better model) while mine is in the shop.

Re: Tesla shares dive after Consumer Reports yanks recommendation for Model S

#34

Post by vvanders »

outworlder wrote: post #14
skorecky wrote: post #9

Earlier quoted context omitted.

They address this in the article. > Tesla spokesman Ricardo Reyes said the Palo Alto automaker keeps in close communication with its customers to “proactively address issues, and quickly fix problems.”

Yeah, but do they? As far as companies go, I have a decent level of trust on statements by Tesla. But it is still a company, and that statement has to be independently evaluated.

Based on personal experience with a slightly creaky pano-roof and from other owners they're pretty expedient about solving issues. If you're buying one out of warranty it's definitely a concern.

That said I think the advantages of such an incredible piece of technology outweigh some repair issues down the line.

Re: Tesla shares dive after Consumer Reports yanks recommendation for Model S

#35

Post by beamatronic »

derekp7 wrote: post #11

Seeing as how the battery system is primarily what makes electric cars expensive, I really wish automakers would start delivering plugin hybrids that have, say 75 - 100 mile range on battery (to keep cost down), along with a very low horsepower gas engine. (Most plugin hybrids give you about 20 - 30 miles on battery). The way it would work: the battery would drive the front wheels, and you would use the battery for m…

In other words, you want the Chevy Volt.

Re: Tesla shares dive after Consumer Reports yanks recommendation for Model S

#36

Post by briandear »

I wonder how many CR editors shorter Tesla stock before this was published. It wouldn't even be considered insider trading. I don't really put much stock in CR, unfortunately, the markets did -- quite unfairly actually since most folks buying Teslas aren't doing comparison shopping using CR.

Re: Tesla shares dive after Consumer Reports yanks recommendation for Model S

#37

Post by kpwagner »

derekp7 wrote: post #11

Seeing as how the battery system is primarily what makes electric cars expensive, I really wish automakers would start delivering plugin hybrids that have, say 75 - 100 mile range on battery (to keep cost down), along with a very low horsepower gas engine. (Most plugin hybrids give you about 20 - 30 miles on battery). The way it would work: the battery would drive the front wheels, and you would use the battery for m…

LOL. Genius. You should go make this perfect vehicle. Please make a post in five years to let us all know how that went for you.

Re: Tesla shares dive after Consumer Reports yanks recommendation for Model S

#38

Post by weinzierl »

encoderer wrote: post #19
simonsarris wrote: post #6

As Consumer Reports suggests, this is totally understandable. Straight from CR: > The Tesla wasn’t the only high-performance vehicle that fell below average in reliability. Others include the BMW X5 and 5 Series, and the Chevrolet Corvette. > When automakers roll out new technology, be it infotainment, transmissions, or engine variations, it often has a deleterious effect on vehicle reliability. Tesla is not only the…

Tesla's PE in 2016 is forecasted over 130. For comparison bmw is under 10. Tesla is priced for perfection.

Probably not everyone knows what PE is (I didn't):

   The price to earnings ratio (PE Ratio) is the measure of the share price 
   relative to the annual net income earned by the firm per share. PE ratio 
   shows current investor demand for a company share. A high PE ratio 
   generally indicates increased demand because investors anticipate earnings 
   growth in the future. The PE ratio has units of years, which can be 
   interpreted as the number of years of earnings to pay back purchase price.[1]
According to [1] GE is 12, Ford 17, Nissan 10. Possible source for the P/E 130 [2].

[1] https://ycharts.com/companies/TSLA/pe_ratio

[2] http://www.nasdaq.com/symbol/tsla/pe-ratio

Re: Tesla shares dive after Consumer Reports yanks recommendation for Model S

#39

Post by toomuchtodo »

encoderer wrote: post #31
beat wrote: post #23

Earlier quoted context omitted.

Tesla is a growth company that could be a giant. BMW is a stable old blue chip. Different market values entirely. At the individual car level, Tesla S is priced to match mid/high end sedans from BMW, Mercedes, and Audi, so that's the quality level they need to hit. And such quality isn't about reliability so much as fit and finish. Tesla is doing extremely well against very established competition in that regard.

Check out the PEG ratio, which factors in growth. Rapid and sustained growth is not guaranteed and bad press can inhibit it. But you need that growth to justify the valuation. Priced for perfection.

Priced to be the supplier for every other vehicle company that needs batteries, every utility that needs utility scale battery storage, and possibly even an Uber competitor.

Properly priced.

Re: Tesla shares dive after Consumer Reports yanks recommendation for Model S

#40

Post by vhold »

pkorzeniewski wrote: post #27
simonsarris wrote: post #6

As Consumer Reports suggests, this is totally understandable. Straight from CR: > The Tesla wasn’t the only high-performance vehicle that fell below average in reliability. Others include the BMW X5 and 5 Series, and the Chevrolet Corvette. > When automakers roll out new technology, be it infotainment, transmissions, or engine variations, it often has a deleterious effect on vehicle reliability. Tesla is not only the…

I wouldn't take the owner satisfaction ratings too seriously, people who buy Tesla cars are mostly rich enthusiasts of new technologies and will quietly deal with a lot of issues before starting to criticize the car. If someone doesn't care about the electric engine, there's really no reason to buy a Tesla - for the same price you can get a much more luxurious german car with proven technology. It's similar to people…

Also when you spend over $100,000 on a car you're less likely to want to diminish its status value and other peoples' perceptions of your choices by complaining about it.
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