How will the recall of the Model X affect share price? Sounds like a safety issue in the seatback of the 3rd row.
Tesla might use loophole to get more buyers a big discount Some Tesla owners will be paying much less than others for their electric cars, thanks to tax credits offered by the federal government. A $7,500 credit is available to people buying one of the first 200,000 eligible vehicles made by an auto manufacturer. As of a few days ago, there were 325,000 pre-orders of Tesla's new Model 3, each reserved with a $1,000 deposit. Tesla has already sold tens of thousands of other models--roughly 25,000 Model S cars in 2015, for instance--and these too count toward the company reaching the 200,000-sale mark. At first glance, one might assume that anyone buying a Tesla after the company has already sold 200,000 units would be out of luck and miss out on the $7,500 tax credit. But there's a loophole. The law actually doesn't say that the credit expires with 200,001st vehicle sold, but rather at the end of the quarter in which the company hits the 200,000th vehicle. There's potentially some significant wiggle room here. According to Automotive News, Tesla could hit that number on the first day of a quarter and then have a few months to pump out as many cars as possible--each eligible for the full $7,500 credit. Asked by a Twitter user whether this move was on the table, Tesla CEO Elon Musk suggested he would potentially employ it. With the enormous amount of pre-orders, which amount to $14 billion worth of automobiles, Tesla will have to balance lowering the cost to customers—via the tax credit—with making sure everything runs smoothly. Tesla is already sailing in uncharted waters and is playing a high-stakes game, and a botched car at this level of popularity could scare consumers and push back the electric car's mainstream adoption for another decade. LINK - http://www.msn.com/en-us/money/comp...-to-get-more-buyers-a-big-discount/ar-BBrCHAT
Could be big news if Tesla can find a way to use the loophole to get more people the tax credit on owning an electric car. I could see a lot of extra people jumping in and supporting the company and the industry as a whole if they can find a way to get more people that discount.
Tesla recalls 2,700 Model X SUVs Tesla is warning owners of its Model X SUV to not have anyone sit in the back of the vehicle until it can replace the third-row seat backs, which could fail in an accident. The automaker on Monday announced the voluntary recall of 2,700 Model X vehicles built before March 26 at the company's plant in Fremont, California. Tesla said it knows of no incidents where the hinge for a third-row seat has failed, but after a crash test, it determined the seat backs could collapse forward in some accidents. "It's actually with the leverage of weight in the seat pulling it forward. So this would be an example of a front crash where the weight of the passenger seat belted to that seat could cause that latch to fail," said Jon McNeill, president of sales and service at Tesla. The seat backs in question are provided by an outside supplier, Futuris. Tesla said Futuris will cover the cost of replacing the seat back. Futuris is owned by Clearlake Capital, and headquartered in Melbourne, Australia. "A fix to this issue is already in place. We have worked with our supplier to develop a new recliner design with improved quality that resolved the issue. We are now constructing new third-row seat backs to match all affected vehicles," Tesla said in a letter to Model X owners. Shares of Tesla were down slightly about an hour after the company announced the recall. "Headed into this call, which people got word of this morning, a lot of people expected a Model S refresh, so we saw the stock up in early morning trading today, so I think this is a big disappointment on that side. Now, a thing to remember about this recall is that we also had a similar type recall in 2013, when … a similar number of S's rolled out, and it was a seat-welding issue," Ben Kallo, a senior research analyst at R.W. Baird, told CNBC's "Power Lunch." "The stock ended trading up on it because Tesla was proactive in its recall. But still, with the stock having a big run here, you could see a little pressure" to the downside. This is the first recall for the Model X, which has been the subject of design and production delays since shortly after Tesla unveiled the electric vehicle a couple of years ago. CEO Elon Musk has said Tesla may have been too ambitious in designing certain features within the Model X, which led to slower-than-expected production. The third-row seats had not been cited as problem before this recall. Deliveries for the Model X started in late 2015. Tesla said the recalled vehicles will take a couple hours to fix, and all repairs should be done within five weeks. Meanwhile, the company said production of the Model X in California will not be impacted by the recall, and it expects no financial impact on its bottom line. "Until the recall is performed, you may make full use of your Model X, although we ask that you temporarily not have anyone sit in the third-row seats while the car is in use," Tesla said. In November, Tesla recalled all Model S vehicles delivered before Nov. 19 over an issue related to the front seat belt, which could prevent it from functioning properly. LINK - http://www.cnbc.com/2016/04/11/tesla-recalls-2700-model-x-cars.html
There are two Tesla owners in my neighborhood, I love listening the sound of the car roll by, so silent! Better than the kid with the Honda Civic and the coffee can pipe.
No oil deal..Market will open red today. It will be interesting to see if TSLA follows the oil news. Oil might go back down to $30.
I wouldn't be surprised. It was so obvious the deal wouldn't go through and yet the expectations of many have been shattered. Let's see how TSLA reacts.
$TSLA given LT rsi sup., long >251,& short if it takes out Tues low. Close to ER, maybe a risky short. No pos yet.
Well, wrong on that one. TSLA been taking it on the chin lately. Down another 3.5% today and sitting below the 200MA. Could be in for a much larger drop if it doesn't close above the 200MA.
Pre-earnings sell off for the most part. Nothing that unusual there. Wait for tomorrow to pass judgement
