Tesla Motors Inc. (TSLA) shareholders have had much to fret about lately, from a nosebleed valuation and sagging stock price to periodic YouTube videos of exploding Tesla electric cars. Here’s another one for the list: Sometimes Tesla acts like it doesn’t know what it’s doing when it comes to financial reporting.
Consider Tesla’s news release last week disclosing its third-quarter financial results. The headline said Tesla had “Net income (non-GAAP) of $16 million.” Tesla spent parts of the first three pages discussing this and other nonstandard metrics that don’t comply with generally accepted accounting principles.
lying by omission???
“Ignore that, it’s old math, we like the new math better ’cause it says we’re profitable.”
I wonder how long before people will be swapping in Chevy V8s as is being done with the Fisker Karma?.
They are simply employing Obamas gangman style of accounting. Let’s all hip hop our way to the golf course. Everything that goes on now in the USA is like an Obama cartoon.
It’s not as if every government in the world doesn’t make up its own accounting rules so voters have no idea what is going on. Mind you, Tesla is required to follow rules, government is not.
“As it turns out the failure of Fisker may have been a blessing for Destino fans, as hundreds of Karma owners are seeking the 556 horsepower V8 conversion.”
http://gas2.org/2013/05/07/fisker-karma-owners-lining-up-for-destino-v8-conversion/
If only I had some spare cash, I’d drive an environmentally sensitive Fisker – the 556 hp one.
A company with the most revolutionary product since sliced bread
offering its clamoring customers a extra comfy buyback in three
years guaranty? Quibbling over profit and loss is so yesterday.
Math is hard.
These are known as cult stocks. Their pricing has nothing to do with valuation. Another one closer to home is Canadian Solar (shell corp for another Chinese outfit). It hypes being nearly profitable despite not showing its first year in the black, even in today’s highly subsidized environment. Its stock price has gone from $2 to $32 this year alone. Warning! Trying to call a top to sell short from is hazardous. I know.