ibusinesslines.com November 14, 2018

Tesla facing criminal investigation over Model 3 production, report says

27 October 2018, 07:36 | Kelvin Horton

Why almost everyone was wrong about Tesla's cash flow situation

Tesla finally posts a profit

It fell far short, making just 793 in the last week and 2,700 for all of 2017.

Though early reports claimed that the Model Y would be built upon a brand new platform, Tesla - for the sake of profitability - will not go down that path.

Musk also was unclear about whether or not the company could meet the 20% margin goal on the Model 3's $35,000 edition.

While Tesla tries to shake up the industry, long-established automaker Ford Motor Co. reported a net profit decline of 37 percent in the third quarter as sales slowed in the USA and China.

However the company has defended its forecasts.

The - of late controversial - CEO of Tesla Inc went on to say: "Model 3 became the best-selling vehicle in U.S.in terms of revenue and the 5th best-selling auto in terms of volume".

Tesla recently settled a civil lawsuit filed by the Securities and Exchange Commission, which sued over tweets by founder Elon Musk that he had funding in place to take the company private. But Tesla said it has not received any additional document requests, a subpoena, or a request for testimony from the DOJ about its public guidance for Model 3 production "for months". By contrast, positive cash flow means that more cash is coming in, allowing a company to pay down its debts.

Thanks to the production push for the Model 3 over the summer, Tesla was able to rack up $312 million in profits for Q3.

Kamran Mumtaz, a Tesla spokesman, sent Ars a statement, saying that earlier this year the company received a voluntary request for documents, which it complied with.

Anandhi Bharadwaj, an information systems professor in Atlanta, was persuaded to wire $60,000 to Tesla in August but said she didn't receive the title until October.

According to Engadget, Musk said that the long-promised $35,000 United States dollars (approximately $45,700 CAD) is less than six months away.

Former Tesla employees have reportedly been contacted by the Federal Bureau of Investigation.

CEO Elon Musk will sabotage his own goals for the electric vehicle maker if he takes it private, said ARK Invest CEO Cathie Wood, who predicted Tesla stock could reach $4,000 per share.

However the company ended up producing 2,700 Model 3s for all of 2017, and 793 in the last week of 2017.

"We can actually be cash flow positive and profitable in all quarters going forward", Tesla's Musk noted. "Many of these elements, particularly mix, are peaky in nature, and will likely fade in the future, so the burden of proof remains on TSLA to generate core underlying earnings and cash flow absent peak factors". Tesla is in no danger of going bankrupt.

Shares in Tesla have shot up 7.5 per cent today after the company moved into the black in its third quarter results.

Other News

Trending Now

Rockets offering four first-round picks for Jimmy Butler
The team has said that they are committed to trading Butler when they are presented with a satisfactory offer . The closest the Timberwolves have come to dealing Butler was in a trade with Miami.

Buckle up: Wall Street volatility is back
Mattel dropped 2.6 per cent to $13.48 after the toy maker served up quarterly results that fell short of analysts' forecasts. That stretch included a couple of big rallies, but the losses erased the benchmark index's gains from earlier in the year.

Khashoggi murder: Saudi crown prince calls journalist's killing 'heinous crime'
When the Saudi team left the consulate, one of the team members got dressed in Khashoggi's clothing and left the consulate, pretending to be him.

Amazon Q4 sales forecast comes in below estimates
AWS is now commanding a 31 percent margin which is something that has been sorely lacking from Amazon's primary segments. The company's burgeoning advertising business continued to show strength, with sales more than doubling in the quarter.

Migrant caravan sets out anew on quest to reach USA border
The mostly Honduran migrants will likely face bureaucratic hurdles in Mexico and possible deportation as they inch northward. The federal government hasn't given the migrants on the road a single meal, a bathroom or a bottle of water.

Saudi Arabia now says Khashoggi murder 'premeditated'
According to two intelligence sources, Qahtani ran Khashoggi's killing by giving orders over Skype. Mr Khashoggi was killed on October 2 at the Saudi Consulate in Istanbul.

'Bombs' sent to homes of Barack Obama and Hillary and Bill Clinton
CNN moved its stream to Washington DC as reporters were forced to evacuate their NY building during a live broadcast. The agency says neither the White House nor Clinton or Obama received the packages because of screening procedures.