The 8-year warranty on the battery pack is not new. The engineers long ago determined how long it would last. Yesterday's news was related to the extension of the drive train warranty from 4 years to 8 years.
Yes, you are missing the fact that the 8-yr warranty on the battery pack has always been there. The pack is expected to last at least 12 years. What's new is the extension of the drive train warranty from 4 years to 8 years.
An 8-year warranty on the battery pack has always existed. They are just extending the warranty on the drive train from 4 years to 8 years. Nevertheless, the public will love this
Infinite Mile Warranty
By Elon Musk, CEO
The Tesla Model S drive unit warranty has been increased to match that of the battery pack. That means the 85 kWh Model S, our most popular model by far, now has an 8 year, infinite mile warranty on both the battery pack and drive unit. There is also no limit on the number of owners during the warranty period.
Moreover, the warranty extension will apply retroactively to all Model S vehicles ever produced. In hindsight, this should have been our policy from the beginning of the Model S program. If we truly believe that electric motors are fundamentally more reliable than gasoline engines, with far fewer moving parts and no oily residue or combustion byproducts to gum up the works, then our warranty policy should reflect that.
To investors in Tesla, I must acknowledge that this will have a moderately negative effect on Tesla earnings in the short term, as our warranty reserves will necessarily have to increase above current levels. This is amplified by the fact that we are doing so retroactively, not just for new customers. However, by doing the right thing for Tesla vehicle owners at this early stage of our company, I am confident that it will work out well in the long term.
I suggest googling the following that appeared at 24/7 Wall St. on April 22, 2014 and was repeated at MarketWatch. It is what inspired me. Sorry, I did not mean to offend anyone.
"Deutsche Bank Identifies Next S&P 500 Candidates"
And Standard & Poor’s publication “General Criteria for S&P U.S. Index Membership” concludes:
These are the main five criteria used by the S&P Index Committee to identify Index candidates. Please keep in mind that a company meeting all of these criteria is not assured of being added to an S&P Index. Likewise, the fact that a company might not meet all of the above requirements does not mean that it cannot be added to an Index.
Both of the S&P statements that I posted appear to trump any individual criterion.
Below is the opening statement from Standard & Poor’s publication “General Criteria for S&P U.S. Index Membership”:
One of the most frequent questions we get at Standard & Poor’s is, “What are the criteria for being added to an S&P Index?” First and foremost, S&P Indices are not rules-based; all changes are fully discretionary and are determined by the Index Committee based upon public information.
I hope this answers your question.
Especially when announcements could come at any time regarding the Model X, Gigafactory or addition to the list of S&P 500 companies.
I got in 18 months ago and have never gotten out despite several dips. I don't intend to take profits until a Gigafactory is built and there is a Model 3 in every other driveway. A great many TSLA shareholders are like me. Many of them bought the car first and were so thrilled that they bought the stock. They file the stock away and don't intend to investigate its price movement for years. You're fighting an ever growing army of strong long term happy and content shareholders. They won't allow you an opportunity to cover your short position by buying their shares at a cheap price.
That could lead to a disruption in Russian oil exports and an added incentive to buy electric cars.
There is no need to SHOUT all of your spam. TSLA is being priced based on the potential for a cheaper model in 2017 and battery packs to be used for the storage of solar and wind power.
Shorting a stock is never "safe", especially not with a company that is successfully disrupting major industries. The potential loss for a short seller is unlimited.
That could lead to a stoppage of Russian oil exports and an increase in electric car sales.
The potential to disrupt has the stock headed for another all-time closing high today. Who is actually laughing, and who needs to wise up?
That may result in a cutoff of Russian oil and benefit the sales of electric cars.
The rest of the industry does not take orders or deposits from individual customers. It sells every car produced to franchised dealerships. As you suggest, Tesla may have comparing their orders to dealership sales. Considering the different business models, that makes sense.
Grasping at straws to justify shorting the stock could be costly. Try to see the forest through the trees. The market is not pricing the stock based on near term sales as in the case of a long established automaker. Many investors understand the potential for successfully disrupting several major industries.