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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

#21

Post by weinzierl »

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…

At least the BMW i3 with range extender is similar to what you described. Its range without the extender is 81 miles (EPA). The range extender is a two-cylinder gasoline engine from a motorcycle.

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

#22

Post by ceejayoz »

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.

Comparing Tesla to BMW like that probably isn't very reasonable. No one has any expectations that BMW will suddenly decide to start selling 10x or 100x the number of cars, while that's Tesla's explicit goal.

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

#23

Post by beat »

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.

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.

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

#24

Post by ssharp »

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.

I think Tesla is less priced for perfection and more priced for the future. Investors expect Tesla to eventually surpass companies like BMW, across the board for each model. By betting on Tesla, they're betting on Tesla being the dominating player in electric vehicles as well as electric vehicles dominating ICE vehicles in passenger categories.

I also think the price includes things like their rapidly improving battery technology that could be used for things other than cars, like storing energy from sources that can't provide a steady stream of energy, like solar.

So, there's certainly a lot going on with Tesla that isn't going on with a company like BMW.

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

#25

Post by MichaelGG »

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.

Perfection or just some growth? Their volume is really small, isn't it? If they just manage to sell, I dunno, 10x more cars then that P/E would drop right down no?

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

#26

Post by MikeTLive »

notJim wrote: post #16

Seems like a great opportunity to get yourself some (relatively) cheap $TSLA.

That's what has happened. At (5%) came up a little then down till another (5%) and up again on volume, then dropped to its (12%) relative min on the day and has been slowly coming up and I predict will continue to do so as all the people that believe in it hold the shares they bought at the min and will sell again when it recovers. A tidy little day traders profit session.

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

#27

Post by pkorzeniewski »

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 buying exotic sports cars - they know the reliability is worse than in "normal" cars and they're much more expensive to maintain, but that's not the reason why they bought the car, so they won't complain about it.

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

#28

Post by beat »

late2part wrote: post #8

On the one hand, they're a new company relative to the others; they are taking many risks, and they won't perform flawlessly - so I give them a lot of slack for trying and mostly succeeding. Also, they are very good at fixing things when they screw up. On the other hand, their stock price is WAY over valued. Hopefully we will get gentle ratchets to bring it back down to earth, such as this.

I'm not convinced the stock is overvalued. Tesla could end up not only making cars, but reworking the whole electric grid. How often does a company get to change a fundamental utility like that?

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

#29

Post by skorecky »

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.

Yes.

They have a 97% satisfaction rating.

They actively update their cars through software and hardware/parts[1]

Just because they're a company doesn't mean they're trying to screw everyone over. Do you think they roll out cars with bad parts of purpose? No of course not.

[1] http://www.teslamotors.com/blog/tesla-adds-titanium-underbod...

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

#30

Post by ZeroGravitas »

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…

An internal combustion engine which purely charges the battery seems to be the way things will go in the future, like the current BMW i3 with optional "range extender".

Though inertia will keep various other hybrid designs available in the near term.

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