Forbes Clears The Air And Sides With Tesla On Sales Vs Inventory Reporting

Odds are you’ve never heard of John Lovallo, the Merrill Lynch auto analyst, but you can bet Elon Musk has. Back in February, Lovallo suggested Tesla was worth just $65 a share a day after it had hit an all-time best $265. In the ensuing 9 months, the stock has mostly traded sideways, closing above $251 yesterday. But Lovallo is convinced the worst is still to come.

In a research note to clients, parts of which were published in the Daily Kanban, Lovallo came just short of accusing Musk and company of outright lying during Tesla’s third-quarter conference call. The note claims inventories are rising, Tesla is failing to make inroads in China and then ranges into some downright bizarre claims about the profitability of the Model S itself. Tesla doesn’t reveal quite enough in its regulatory filings to take down every one of Lovallo’s claims, but this will come close.

MDarringer - 11/14/2014 8:14:21 PM

+1 Boost

Musk paid someone off to be a cheerleader.

Weapon - 11/15/2014 12:00:02 AM

+2 Boost

How is speaking the truth in any ways being a "cheerleader"?

Realistically speaking, my guess is Musk doesn't even know about the Merrill Lynch nonsense report. Because if he did, knowing Musk he would call them out on their BS himself.