Economy Last days of Tesla. Closing a dozen solar plants. Loses deal with Home Depot.

It closed green. This stock is ridiculous, that is why I just stay away and observe.

Ford had a good day. Up almost 2%. It will die soon though.

6 months was our bet - right?

Wow - yahoo finance really sucks.
 
Tesla sues Ontario government for 'unfair' scrapping of electric car scheme
The Canadian arm of Tesla Motors is taking Ontario’s new Conservative government to court, claiming it has suffered “substantial harm” after the cancellation of a rebate programme for residents who bought electric vehicles.
Since taking power earlier this year, the new government – led by Doug Ford, the brother of the former, late Toronto mayor Rob Ford – has killed off several initiatives ushered in by previous Liberal governments, from a pilot exploring basic income to a hike in the minimum price of beer.
Included in this was the end of a carbon pricing policy that sought to reduce greenhouse gas emissions in Canada’s most populous province. The move would also end a range of environmental initiatives funded by the programme, including rebates of up to C$14,000 ($10,700) for residents who bought electric vehicles.
To the soften the blow, the government announced a transition period; rebates would be honoured for anyone who bought electric vehicles through a dealership, as long as the vehicles are registered and delivered by 10 September.
In an application for judicial review filed earlier this month, Tesla Motors Canada claimed this stipulation unfairly singled the company out, as it sells vehicles directly to customers rather than through dealerships.
“The Minister of Transportation’s decision suddenly left hundreds of Tesla Canada’s Ontario customers in the unfair position of no longer being eligible for the rebate they had expected to receive when they ordered their vehicles,” the lawsuit claimed. It noted that those who purchased other brands of vehicles can still receive a rebate.
“The decision has already inflicted substantial harm on Tesla Canada in the form of lost sales and the creation of an impression among Ontarians that Tesla Canada may be singled out for future arbitrary treatment under the law,” the lawsuit noted.
https://www.theguardian.com/world/2018/aug/18/tesla-ontario-sue-electric-car-rebate-scheme
 
So I posted a couple of pages ago that their Q had listed $3.5B cash on hand and $2.3B in supplier AP. Apparently a report out this morning indicates their suppliers are getting nervous. If two key suppliers stop shipment until payment that could be a terrible tip of a domino if it's true that they also have notes due in October and November.

I wonder if any of these big shorts would consider talking to a supplier or two to tip things in their favor. Would be the kind of thing I would expect from bottom of the barrel shorts.
 
Yep. Ever tried to charge at midnight on a Sunday when traveling? I’ll stick with 24\7 Super Chargers.

The ones at my local dealership are available 24/7, I haven't checked any others. My local dealership has had one Bolt and only for a day or two before it was bought through Carvana and sent out of state.
 
So I posted a couple of pages ago that their Q had listed $3.5B cash on hand and $2.3B in supplier AP. Apparently a report out this morning indicates their suppliers are getting nervous. If two key suppliers stop shipment until payment that could be a terrible tip of a domino if it's true that they also have notes due in October and November.

I wonder if any of these big shorts would consider talking to a supplier or two to tip things in their favor. Would be the kind of thing I would expect from bottom of the barrel shorts.

Tesla suppliers have a dilemma. Many are already owed large sums by Tesla. If they stop shipping parts, Tesla goes under and they might never get paid. If they keep shipping parts and another supplier stops shipping parts, Tesla goes under and they lose even more money. If all suppliers keep shipping parts and Tesla suceeds, they might all get paid. Can all suppliers afford to wait for payment? They have suppliers and employees to pay. If even one supplier goes under, the dominoes start falling.
 
So I posted a couple of pages ago that their Q had listed $3.5B cash on hand and $2.3B in supplier AP. Apparently a report out this morning indicates their suppliers are getting nervous. If two key suppliers stop shipment until payment that could be a terrible tip of a domino if it's true that they also have notes due in October and November.

I wonder if any of these big shorts would consider talking to a supplier or two to tip things in their favor. Would be the kind of thing I would expect from bottom of the barrel shorts.

https://www.marketwatch.com/investing/stock/tsla/financials/balance-sheet/quarter

Current Assets: $6.7B
Current Liabilities: $9.1B

And they are cash flow negative. Yup...
 
Tesla suppliers have a dilemma. Many are already owed large sums by Tesla. If they stop shipping parts, Tesla goes under and they might never get paid. If they keep shipping parts and another supplier stops shipping parts, Tesla goes under and they lose even more money. If all suppliers keep shipping parts and Tesla suceeds, they might all get paid. Can all suppliers afford to wait for payment? They have suppliers and employees to pay. If even one supplier goes under, the dominoes start falling.

How do you mean by 'afford to wait for payment'? Is Tesla currently exceeding its agreed upon payterms with its suppliers?
 
Tesla suppliers have a dilemma. Many are already owed large sums by Tesla. If they stop shipping parts, Tesla goes under and they might never get paid. If they keep shipping parts and another supplier stops shipping parts, Tesla goes under and they lose even more money. If all suppliers keep shipping parts and Tesla suceeds, they might all get paid. Can all suppliers afford to wait for payment? They have suppliers and employees to pay. If even one supplier goes under, the dominoes start falling.

The auto industry supply chain is so tight it's insane. My wife worked in program mgmt for several years in automotive. She supplied Toyota/Lexus with a part most recently. I was shocked to hear that JIT is now so lean that any time TOyota/Lexus only has 35 parts on hand! Trucks go to their site 16hrs a day.


Here's another supplier dilemma. It's no secret that the big 3 basically do a programmed destruction of their suppliers to keep costs down. Does Tesla do the same to up margin or do they keep suppliers in business by paying above average parts prices?
 
How do you mean by 'afford to wait for payment'? Is Tesla currently exceeding its agreed upon payterms with its suppliers?


He means 'can't afford to put Tesla under'.
 
The ones at my local dealership are available 24/7, I haven't checked any others. My local dealership has had one Bolt and only for a day or two before it was bought through Carvana and sent out of state.

Perhaps my experience was an anomaly. Was traveling with a friend and the one we tried to use was behind a locked gate.
 
How do you mean by 'afford to wait for payment'? Is Tesla currently exceeding its agreed upon payterms with its suppliers?

What if your employer didn't pay you on your normal payday? How long could you or would you go without being paid? You have bills to pay too. Some suppliers had agreed to delayed payments until production was ramped up but that was suppoded to have happened a year ago. Last reports I saw was that Tesla was behind on paying suppliers and even asking supplies to give them money back. Many suppliers bill at the end of the month nd the bill usually has to be paid within 30 days. This means a company can be waiting for payment on 2 months of production. This is a fairly common business practice these days for companies to work with other companies money. It's like a no interest loan.


A recent survey sent privately by "a well-regarded automotive supplier association" found that 18 of 22 respondents believe that Tesla is now a financial risk to their companies. The Journal also reported that several suppliers said that Tesla has asked for significant cash back and attempted to stretch out payments.
Tesla's Suppliers Worry About Whether They'll Be Paid - TheStreet
 
The auto industry supply chain is so tight it's insane. My wife worked in program mgmt for several years in automotive. She supplied Toyota/Lexus with a part most recently. I was shocked to hear that JIT is now so lean that any time TOyota/Lexus only has 35 parts on hand! Trucks go to their site 16hrs a day.


Here's another supplier dilemma. It's no secret that the big 3 basically do a programmed destruction of their suppliers to keep costs down. Does Tesla do the same to up margin or do they keep suppliers in business by paying above average parts prices?

Just in time supply chains can really hurt a company. They become vulnerable to any problem at any supplier. Remember the fire at Meridian Magnesium this spring that caused Ford to shut down its pickup line. The big companies used to produce all of their own parts. Now they are dependent on someone else for many parts. Any hiccup from one supplier can cripple them.

Tesla buys parts from companies that also supply parts to other automakers. Some of those companies are "living" off other business. If automakers really wanted to put another company out of business, they could find another source for parts and put a company that supplies a crucial part for a competitor out of business. Some companies that supply parts for Tesla are small companies and have to expand as Tesla's production increases. That takes money.

Then there is the choice of who suppliers favor. Lets say you make aluminum wheels. If Tesla is making 20,000 model 3 cars a month, they need 80,000 wheels. Ford sells 90,000 pickups a month so they need 360,000 wheels. You have both as customers. If you had a problem keeping up with production, who do you favor?
What if Ford threatens to stop buying wheels from you if you keep making them for Tesla? Tesla makes such a comparatively small number of vehicles that they don't have the ability to make demands on suppliers. For many suppliers, Tesla is a minor client.
 
What if your employer didn't pay you on your normal payday? How long could you or would you go without being paid? You have bills to pay too. Some suppliers had agreed to delayed payments until production was ramped up but that was suppoded to have happened a year ago. Last reports I saw was that Tesla was behind on paying suppliers and even asking supplies to give them money back. Many suppliers bill at the end of the month nd the bill usually has to be paid within 30 days. This means a company can be waiting for payment on 2 months of production. This is a fairly common business practice these days for companies to work with other companies money. It's like a no interest loan.



Tesla's Suppliers Worry About Whether They'll Be Paid - TheStreet

Trust me, I am well aware of how payterms in this type of industry work. I wasn't sure if Tesla was late. The link you provided was quite interesting - thank you.

The Journal's sources said that while Tesla has improved its on-time payments to production-related suppliers to about 95% this year from 90% last year, for nonproduction suppliers, the company is paying on time only about 80% of the time.

When asked for comment, Tesla referred to the comments CEO Elon Musk gave to the Journal during an interview Friday.

"We're not behind because we can't pay them. It is just because we're arguing whether the parts are right." Musk told the Journal. "We are definitely not going bankrupt."

Oh Elon...
 
From my experiences, 80-90% on time payments is incredibly low. The way this deals are set up, the payer is typically financially punished if they are out of payterms.
 
80% of the cars produced in the last week of June required rework.

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