Tesla
  • Tesla
  • A Tesla Model S drives outside the Tesla factory in Fremont, Calif., Friday, June 22, 2012. The first Model S sedan car will be rolling off the assembly line on Friday. (AP Photo/Paul Sakuma)
  • Image Credit: Associated Press
  • Tesla
  • A worker assembles a Tesla Model S at the Tesla factory in Fremont, Calif., Friday, June 22, 2012. The first Model S sedan car will be rolling off the assembly line on Friday. (AP Photo/Paul Sakuma)
  • Image Credit: Associated Press
  • Tesla
  • A robot puts on the top of a Tesla Model S at the Tesla factory in Fremont, Calif., Friday, June 22, 2012. The first Model S sedan car will be rolling off the assembly line on Friday. (AP Photo/Paul Sakuma)
  • Image Credit: Associated Press
  • Tesla
  • A worker works on the Tesla Model S at the Tesla factory in Fremont, Calif., Friday, June 22, 2012. The first Model S sedan car will be rolling off the assembly line on Friday. (AP Photo/Paul Sakuma)
  • Image Credit: Associated Press
  • Tesla
  • Assembly workers put together a Tesla Model S at the Tesla factory in Fremont, Calif., Friday, June 22, 2012. The first Model S sedan car will be rolling off the assembly line on Friday. (AP Photo/Paul Sakuma)
  • Image Credit: Associated Press
  • Tesla
  • A worker inspects a Tesla Model S car at the Tesla factory in Fremont, Calif., Friday, June 22, 2012. The first Model S sedan car will be rolling off the assembly line on Friday. (AP Photo/Paul Sakuma)
  • Image Credit: Associated Press
  • Tesla
  • Assembly workers inspect a Tesla Model S at the Tesla factory in Fremont, Calif., Friday, June 22, 2012. The first Model S sedan car will be rolling off the assembly line on Friday. (AP Photo/Paul Sakuma)
  • Image Credit: Associated Press
  • Tesla
  • Robots assembly a Tesla Model S at the Tesla factory in Fremont, Calif., Friday, June 22, 2012. The first Model S sedan car will be rolling off the assembly line on Friday. (AP Photo/Paul Sakuma)
  • Image Credit: Associated Press
Tesla Motors said in the release of its first-quarter earnings Wednesday that it will boost its quarterly production on its Model S luxury sedan to as many as 9,000 from the approximately 7,500 it made during the first three months of the year. Bond manager Jeffrey Gundlach doesn't believe that's a good thing.

Gundlach, founder of DoubleLine Capital LP, told Bloomberg News that, while Tesla is a better investment than fast-growth companies like Twitter, the automaker would improve its financial results by halting production of its vehicles and dedicating itself to making battery packs for other automakers. A spokesman for Tesla, whose shares are up almost 40 percent this year, declined to comment to Bloomberg. We'll just sit here and imagine Tesla-powered Nissan Leafs and Chevy Volts.

Back in the real world, aside from its own vehicles, Tesla makes battery packs for the Toyota RAV4 EV and for some versions of the Smart Fortwo ED and the B-Class EV. Tesla and Toyota first announced their collaborative effort in 2010, which included Toyota's equity investment in Tesla as Tesla prepared to take over the old NUMMI plant in the San Francisco Bay Area.

Tesla said Wednesday that it took a $49.8-million first-quarter loss. Compare that to a year-earlier net income of $11.2 million. That's despite boosting revenue 10 percent from a year earlier to $620.5 million. That's largely because Tesla's selling, general and administrative costs more than doubled from a year earlier to $117.6 million.


I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.


    • 1 Second Ago
  • 34 Comments
      SteveG
      • 1 Year Ago
      And this is why this guy is a bond manager and not a productive member of society.
      danfred311
      • 1 Year Ago
      It's not the dumbest advice ever but it's worthy of a nomination this year. First, it's nothing special so anyone can do it (until such time they have a factory of their own and maybe can make money on it) Second, it's a relatively high cost item where you can't attach a lot of margin. Third, there wouldn't be a market, the other cars sell too poorly and see 1. Fourth, Tesla motors would lose all the momentum credibility they have right now by laying down as lapdog for the other car makers. If Tesla Motors announced they would stop making cars it would be raining men on wall street. The stock would put a shotgun in its mouth and blow its head clean off.
        purrpullberra
        • 1 Year Ago
        @danfred311
        Tempting to think of Wall St.ers throwing themselves out windows.... Seems proper for what they've done to the economy and how they rigged financial laws.
          danfred311
          • 1 Year Ago
          @purrpullberra
          Most are just regular semigreedy low quality people. It was only a small group of douches who made the criticial decisions and it wouldn't have been possible if not for republicans (bush) deregulating the market so it could run amok. and the collapse was triggered by rising oil prices because the republican scum has been fighting to keep oil in power. so if you want to place blame, place it with the idiots in pickup trucks. place it in murica. wall street is a tiny symptom of the mental illness that is USA.
          EVnerdGene
          • 1 Year Ago
          @purrpullberra
          Dear Dan, you are again sounding like a bigot and again misinformed. The deregulation you are referring to (Glass-Steagall Act of 1933) was signed into law in 1999 by Clinton. IMHO? Every time the government over-regulates, they eventually de-regulate, but only partially (like in 1999), (like California utilities - remember Enron?). Problem is; we don't have government employees that really understand their azz from a hole in the ground, they do a half-azz job of partially de-regulating with input from their buddies while boozing and stuffing themselves at Ruth's Chris in WDC; and then all he!! breaks lose as the previously over-regulated (smarter than the bureaucrats) game the system. like our new 2572 page healthcare law with already hundreds of pages of revisions and dozens of executive orders amending and delaying many provisions What could possibly go wrong ? Fumigate WDC
          EVnerdGene
          • 1 Year Ago
          @purrpullberra
          The guys on Wall Street don't make our laws. Point finger where it belongs. Fumigate Washington DC.
      Teslatradeup
      • 1 Year Ago
      Elon's goal from the beginning with Tesla was to bring electric cars to the masses - not to quit mid-way to his goal just so he can turn a profit early in. And do you really think compliance happy dinosaur automakers would purchase Tesla batteries when they're completely happy with producing EVs with crap range? Especially if Tesla stops making EVs altogether? What would be their incentive for making a compelling EV with great range?
      purrpullberra
      • 1 Year Ago
      What a joke of an idea. I regularly flush down more thoughtful turds than that story. Who the he11 does he think will buy these batteries?! There isn't a capacity problem for the rest of the EV industry. If I know this(!) it is literally inexcusable for a 'professional' financial pig to so blatantly disregard such a salient fact. The numbers of companies that will buy Tesla batteries is not going to expand fast enough to match the revenue of a large# of car sales. There are so many more things wrong with this notion that it boggles the mind. Damn, what is this dipsh1+ smoking? I have some of the finest in all of Seattle (and ALL DAY with it) but I can see how insane this is. Bloomberg loses cred for publishing this. So they are well into negative territory on that front. Thank goodness for Reuters.
      Mindy Boo
      • 1 Year Ago
      That's like saying General Motors should just build gasoline engines and and General Electric should just sell copper wire.
      Electron
      • 1 Year Ago
      Maybe what a guy like Bond honestly doesn't understand is why some people would actually want to make a compelling product that could actually mean something for mankind rather than just money.
      rubley00
      • 1 Year Ago
      Any excuse to post a Tesla story
      EVnerdGene
      • 1 Year Ago
      if you don't like what they are doing; don't buy their cars, and don't invest in them opinions are like azzholes everyone has one, and all of them stink
      NestT
      • 1 Year Ago
      I suggest Gundlach retire as a management consultant and get a job as a bank teller. He would then do society a greater service.
      Spec
      • 1 Year Ago
      I found this story hilarious. Tesla was the first successful new car company in over half a century . . . this clown thinks they should quit? He doesn't get it. And batteries are not Tesla's core competency. Battery packs are but Tesla has always relied on outsiders to manufacture batteries. They have had some input on some design changes to reduce the price a bit but it is Panasonic that has done the heavy lifting on battery chemistry and manufacturing.
      paulwesterberg
      • 1 Year Ago
      Tesla has solid advice for Bond manager: Keep your crappy uniformed advice to yourself.
      Pandabear
      • 1 Year Ago
      This is why bean counters shouldn't be running companies.
    • Load More Comments
    Share This Photo X