- Nov 4, 2008
- 2008 BMW 335i Coupe (e92)
It's full of "probablys" and "maybes". And they do mention there's a heating issue.I did, and it pretty much says to not be as worried or sceptical as you currently are.
I'm sure the new eco-green-PC-'comedy'-everylineapprovedbyBBCtopmanagement 'Top Gear' will just be gushing over anything Their Most Holy Saint Tesla deigns to drop off with them.Now that Top Gear as we know it is gone and that Tesla has really moved on since that review, do you think we will see exciting stuff about Tesla on the new shows?
And has an interior worse than a Hyundai Sonata, so you wonder just where all the money went.They have a car that will do 0-60 MPH in 2.8 seconds.
Yeah, but did you notice that their bookkeeping is also non-GAAP? For those that don't know, GAAP stands for Generally Accepted Accounting Principles, I.e., the way the books are kept and reported in the supermajority of companies in the U.S. Running your books as non-GAAP is often very bad and a sign of a company that has something to hide.
To put it in a car context, non-GAAP accounting is like the old SAE 'gross' horsepower, where the producer can claim whatever they feel like. GAAP kept books are like SAE net HP, where you have a specific set of criteria with which to evaluate things.
The first thing they need to do if they want to be profitable is move their factory out of California - that alone is immensely increasing their costs. They do seem to have realized this is a problem as instead of using more of the huge ex-Toyota plant they're only using a small corner of now for their new battery factory, they sited it in Reno, Nevada.
The fact remains that Tesla is burning through more money than they've got coming in - and even their non-GAAP gyrations can't hide that when you start digging.A bit of non-GAAP info isn't necessarily a problem; there are things that GAAP doesn't do a good job of depicting or explaining the status of. The problem comes in when you're mostly or completely running your books and making your statements based on non-GAAP techniques. This is what Tesla (and for similar reasons, General/Government Motors) is doing, mostly to obscure the fact that by the metrics most companies use they are bleeding money.
Edit: Here's a brief discussion of GAAP versus non-GAAP and the implications: http://ww2.cfo.com/accounting-tax/2014/03/mind-non-gaap/