Tesla Tumbles Following Unimpressive Earnings

Having beaten consensus earnings and revenues, it seems that the momentum stock of the year is finally getting its come-uppance as it missed whisper numbers on earnings and deliveries:

  • *TESLA 3Q ADJ. EPS 12C, EST. 10C (whipser ~17c)
  • *TESLA FINISHED 3Q WITH SLIGHTLY MORE THAN 5,500 DELIVERIES (whisper ~6,000)
  • *TESLA SEES 4Q NON-GAAP PROFITABILITY `CONSISTENT’ WITH 3Q

This has sent the stocks down over 9% after-hours to 10 week lows… perhaps Musk was right after all.

 

 

Q4 outlook: We are continuing to expand production and plan to deliver slightly under 6,000 Model S vehicles in Q4, which increases our total expected deliveries to 21,500 vehicles worldwide for 2013. ASPs are expected to be relatively flat sequentially as we continue to see a rich mix of options on incoming orders.

Model S gross margin may continue to make slight improvements over the next several quarters as we continue to drive down manufacturing costs. While we expect to achieve our target of 25% non-GAAP automotive gross margin in Q4 (assuming no contribution from ZEV credits), further progress is likely if customers continue to purchase our vehicles with a high option take rate.

R&D expenses are expected to increase sequentially by about 25% in Q4 as we accelerate product development efforts on Model X and Model S enhancements. SG&A expenses are expected to rise sequentially by about 20%, driven by the growth in our retail locations, service centers and Supercharger facilities.

We expect our non-GAAP profitability to be about consistent with Q3, with approximately 139 million fully diluted shares outstanding based on the current level of our stock price. Free cash flow is expected to be close to breakeven.

We expect to spend about $75 to $85 million on capital expenditures for a total of approximately $250 million in 2013, as we expand our factory production capability and customer support infrastructure. All these investments, funded in part by our profitable operations, position us for further expansion of our product portfolio and global growth.

We are now producing 550 cars per week with improved process controls which consistently result in high quality cars. Consequently, we finished the quarter with a record of slightly over 5,500 deliveries, including over 1,000 deliveries to European customers.

 

Full TSLA earnings here (PDF).


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/fQsvciUPdbc/story01.htm Tyler Durden

Bonds Battered And Stocks "Plunge" 0.2% Despite Intraday Ramp

Credit markets have been nervous for over a week. Treasury yields have been rising notably. The USD has been pushing higher and with all eyes focused on the momo name du jour (and indices ‘near’ all-time highs) it seems few have noticed US equities have actually had 3 down days in the last 5 days. Only NASDAQ managed a green close. Of course, this is merely an excuse buy moar with all the money on the sidelines but today’s move in Treasuries (and intraday volatility in stocks) suggest some anxiety is back that a flow-slowing Taper is closer on the horizon of hope than many believe. Oil and Gold lost ground on the day – though the latter is the best of the commodities on the week. The USD is back to unchanged on the week (with CAD and EUR weakness in charge). VIX diverged higher into the close with its first up-day in the last six.

 

Better-than-expected ISM sent stocks lower (good news is bad news) exaggerating early weakness on China ‘tightening’ suggestions…

Only the Nasdaq managed to close green…(depiste the Dow scrambling back to green intraday)

 

S&P futures blew through VWAP on POMO then faded all afternoon – despite an attempt at a ramp – ending teh day at VWAP…

 

Treasury yields blew higher with notable steepening… (worst day for 30Y in 2 months)

 

The USD reverted higher back to unch on the week

 

Credit markets remain entirely unimpressed…

 

 

Charts: Bloomberg


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/FVSG47GOekw/story01.htm Tyler Durden

Bonds Battered And Stocks “Plunge” 0.2% Despite Intraday Ramp

Credit markets have been nervous for over a week. Treasury yields have been rising notably. The USD has been pushing higher and with all eyes focused on the momo name du jour (and indices ‘near’ all-time highs) it seems few have noticed US equities have actually had 3 down days in the last 5 days. Only NASDAQ managed a green close. Of course, this is merely an excuse buy moar with all the money on the sidelines but today’s move in Treasuries (and intraday volatility in stocks) suggest some anxiety is back that a flow-slowing Taper is closer on the horizon of hope than many believe. Oil and Gold lost ground on the day – though the latter is the best of the commodities on the week. The USD is back to unchanged on the week (with CAD and EUR weakness in charge). VIX diverged higher into the close with its first up-day in the last six.

 

Better-than-expected ISM sent stocks lower (good news is bad news) exaggerating early weakness on China ‘tightening’ suggestions…

Only the Nasdaq managed to close green…(depiste the Dow scrambling back to green intraday)

 

S&P futures blew through VWAP on POMO then faded all afternoon – despite an attempt at a ramp – ending teh day at VWAP…

 

Treasury yields blew higher with notable steepening… (worst day for 30Y in 2 months)

 

The USD reverted higher back to unch on the week

 

Credit markets remain entirely unimpressed…

 

 

Charts: Bloomberg


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/FVSG47GOekw/story01.htm Tyler Durden

Florida Teacher Suspended Five Days For Forcing Fourth Grader to Recite Pledge of Allegiance: "If you can't put your hand on your heart, then you need to move out of the country”

"restrictions apply"Anne Daigle-McDonald, a middle
school teacher in Spring Hill, Florida, was suspended for five
days, without pay, for trying to physically force a fourth grade
Jehovah’s Witness to recite the pledge of allegiance on September
11. Jehovah’s Witnesses believe it is against their faith to pledge
allegiance to temporal powers, or the objects that represent them,
and the child had never recited the pledge of allegiance in class
before. Nevertheless, on 9/11 Daigle-McDonald apparently wanted to
teach him what America means. Via
the Tampa Bay Times:

As the students recited, teacher Anne Daigle-McDonald
took the boy’s wrist and placed his hand over his heart. He
protested, pulling his arm down, and reminded her he was a
Jehovah’s Witness.

“You are an American, and you are supposed to salute the flag,”
Daigle-McDonald said, according to a statement the boy gave to a
school administrator.

The next day, Daigle-McDonald again placed the boy’s hand over his
heart.

She then addressed the class.

“In my classroom, everyone will do the pledge; no religion says
that you can’t do the pledge,” several students told a school
administrator, according to a report. “If you can’t put your hand
on your heart, then you need to move out of the country.”

The fourth-grader, of course, likely knows a lot more about his own
religion than his teacher does.

A 2005 DOJ
memo
on the constitutionality of the Postal Service’s oath of
office does explain the government’s belief that a requirement to
“affirm” (but not “swear”) an oath to the Constitution does not
violate religious belief, largely because it “requires only that a
person abide by the nation’s constitutional system of government
and its laws.”

Daigle-McDonald, who sounds like an ignoramus, was probably not
referring to this, and the Jehovah’s Witnesses, in fact, were among
the first Americans to object to “the contradiction inherent in a
compulsory oath lauding individual liberty,” as Greg Beato
wrote
for Reason in 2010. The Jehovah’s Witnesses
efforts against the mandatory pledge culminated in a 1940 Supreme
Court decision, Minersville v. Gobitis, that ruled schools
could force Jehovah’s Witnesses to recite the pledge. The decision,
Beato notes, was followed by tar and featherings, public beatings,
and even the castration of one Jehovah’s Witness in Nebraska. The
plainly wrong decision was overturned by the Supreme Court just
three years later.

Today, young children are largely free to decline to pledge
allegiance to the flag, except when, for example, they’re being
bullied by their teachers. Now, the fight over the pledge of
allegiance is over the inclusion of the phrase “under God,” added
in the 1950s. Ronald Bailey wrote about the recent skirmishes in
that battle, and how it squares with a statute-mandated “voluntary”
pledge in the first place, which you can
read here
, and read Greg Beato’s “Face the Flag” on the history
of the pledge of allegiance, penned by a Christian Socialist who
believed in forcible wealth redistribution, here.

from Hit & Run http://reason.com/blog/2013/11/05/florida-teacher-suspended-five-days-for
via IFTTT

Florida Teacher Suspended Five Days For Forcing Fourth Grader to Recite Pledge of Allegiance: “If you can’t put your hand on your heart, then you need to move out of the country”

"restrictions apply"Anne Daigle-McDonald, a middle
school teacher in Spring Hill, Florida, was suspended for five
days, without pay, for trying to physically force a fourth grade
Jehovah’s Witness to recite the pledge of allegiance on September
11. Jehovah’s Witnesses believe it is against their faith to pledge
allegiance to temporal powers, or the objects that represent them,
and the child had never recited the pledge of allegiance in class
before. Nevertheless, on 9/11 Daigle-McDonald apparently wanted to
teach him what America means. Via
the Tampa Bay Times:

As the students recited, teacher Anne Daigle-McDonald
took the boy’s wrist and placed his hand over his heart. He
protested, pulling his arm down, and reminded her he was a
Jehovah’s Witness.

“You are an American, and you are supposed to salute the flag,”
Daigle-McDonald said, according to a statement the boy gave to a
school administrator.

The next day, Daigle-McDonald again placed the boy’s hand over his
heart.

She then addressed the class.

“In my classroom, everyone will do the pledge; no religion says
that you can’t do the pledge,” several students told a school
administrator, according to a report. “If you can’t put your hand
on your heart, then you need to move out of the country.”

The fourth-grader, of course, likely knows a lot more about his own
religion than his teacher does.

A 2005 DOJ
memo
on the constitutionality of the Postal Service’s oath of
office does explain the government’s belief that a requirement to
“affirm” (but not “swear”) an oath to the Constitution does not
violate religious belief, largely because it “requires only that a
person abide by the nation’s constitutional system of government
and its laws.”

Daigle-McDonald, who sounds like an ignoramus, was probably not
referring to this, and the Jehovah’s Witnesses, in fact, were among
the first Americans to object to “the contradiction inherent in a
compulsory oath lauding individual liberty,” as Greg Beato
wrote
for Reason in 2010. The Jehovah’s Witnesses
efforts against the mandatory pledge culminated in a 1940 Supreme
Court decision, Minersville v. Gobitis, that ruled schools
could force Jehovah’s Witnesses to recite the pledge. The decision,
Beato notes, was followed by tar and featherings, public beatings,
and even the castration of one Jehovah’s Witness in Nebraska. The
plainly wrong decision was overturned by the Supreme Court just
three years later.

Today, young children are largely free to decline to pledge
allegiance to the flag, except when, for example, they’re being
bullied by their teachers. Now, the fight over the pledge of
allegiance is over the inclusion of the phrase “under God,” added
in the 1950s. Ronald Bailey wrote about the recent skirmishes in
that battle, and how it squares with a statute-mandated “voluntary”
pledge in the first place, which you can
read here
, and read Greg Beato’s “Face the Flag” on the history
of the pledge of allegiance, penned by a Christian Socialist who
believed in forcible wealth redistribution, here.

from Hit & Run http://reason.com/blog/2013/11/05/florida-teacher-suspended-five-days-for
via IFTTT

Toronto Mayor Admits Smoking Crack, Rand Paul Addresses Lack of Citing in Works, Works with McConnell on National Right-to-Work Law: P.M. Links

  • Won't somebody think of the regulations?The mayor of Toronto, Rob Ford,
    has finally admitted to
    smoking crack
    , probably in a “drunken stupor” (his actual
    words). He says he is not an addict and is refusing calls to
    resign.
  • In the wake of his
    plagiarism scandal
    , Sen. Rand Paul acknowledged that anecdotes
    in his material had not been properly “sourced and vetted” and will
    be implementing a new process.
  • In other Paul-related news, he’s working with fellow Sen. Mitch
    McConnell to try to append
    national right-to-work legislation
    to the Employment
    Non-Discrimination Act.
  • A
    New Jersey couple is suing
    over the state’s ban of therapy to
    try to turn gay kids straight, saying it denies their right to seek
    treatment for their teen son.
  • Officials in Eastvale, Calif., are going door-to-door checking

    dog licenses
    to
    justify their expensive contract with the county
    in response
    to complaints about loose dogs.
  • The latest
    limp White House defense
    of the Obamacare disaster and the
    president’s untruthful statements about citizens being able to keep
    their insurance policies is that Barack Obama lacks the ability to
    go back in time and not say those things.

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from Hit & Run http://reason.com/blog/2013/11/05/toronto-mayor-admits-smoking-crack-rand
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Peter Suderman on How Obama Relied on False Hope to Sell Obamacare

When
the October launch of Obamacare’s online insurance portals went
disastrously awry, the Obama administration had a handy
communications strategy ready: Distract people with false hope. On
October 21, as the online federal exchange system at the heart of
President Obama’s health law entered its third week of widespread
failures, the president gave a televised speech in which he
admitted that there were “kinks in the system,” but also insisted
that the exchange problems could be worked around, because the
online insurance portals weren’t the only way to enroll in
coverage. “While the website will ultimately be the easiest way to
buy insurance through the marketplace, it isn’t the only way,”
he said. “I want to emphasize this….you can still buy the same
quality affordable insurance plans available on the marketplace the
old-fashioned way, offline—either over the phone or in person.” The
application process, Obama said, would only take about 25 minutes
for an individual. As workarounds go, it was appealing enough. But,
writes Reason Senior Editor Peter Suderman, it was also basically
useless. 

View this article.

from Hit & Run http://reason.com/blog/2013/11/05/peter-suderman-on-how-obama-relied-on-fa
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Reader spooked by paper’s Halloween link to sex offenders

I am responding to The Citizen vol. 21, No. 1,008 from Wednesday, Oct 30.

I love Halloween. Autumn has always been my favorite season, and Halloween was always the grand finale for me as a kid.

Being at the age where I am too old to partake in the Halloween festivities that children enjoy, yet not having kids of my own to take trick-or-treating, my Halloweens these days are little more than a night-long marathon of scary movies. Nonetheless, I still look forward to Oct. 31 like I did when I was young.

read more

via The Citizen http://www.thecitizen.com/articles/11-05-2013/reader-spooked-paper%E2%80%99s-halloween-link-sex-offenders

PTC’s outstanding library, staff deserve some praise

A public letter of praise from me to the staff of the Peachtree City Public Library is long overdue.

Since our daughter was about 3, our family has taken her to the library. Now, at age 5, when she hears that we are going to the library, her excitement level rates about the same as if we said we were taking her out for yogurt at TCBY.

The staff has worked hard to create a kid-friendly environment, stock the shelves with nourishing, fun brain food, and consistently been just as friendly as can be to me and my little learner during our visits.

read more

via The Citizen http://www.thecitizen.com/articles/11-05-2013/ptc%E2%80%99s-outstanding-library-staff-deserve-some-praise-0

PTC’s outstanding library, staff deserve some praise

A public letter of praise from me to the staff of the Peachtree City Public Library is long overdue.

Since our daughter was about 3, our family has taken her to the library. Now, at age 5, when she hears that we are going to the library, her excitement level rates about the same as if we said we were taking her out for yogurt at TCBY.

The staff has worked hard to create a kid-friendly environment, stock the shelves with nourishing, fun brain food, and consistently been just as friendly as can be to me and my little learner during our visits.

read more

via The Citizen http://www.thecitizen.com/articles/11-05-2013/ptc%E2%80%99s-outstanding-library-staff-deserve-some-praise