Thread by @ICannot_Enough

[thread]
Who has time to look into allegations made by $TSLAQ haters & short sellers on Twitter that “$TSLA is doomed” because they aren’t accruing enough warranty reserves to pay future claims??

A publication for warranty professionals- that’s who!
/1

warrantyweek.com/archive/ww2019…

Allow me to quickly summarize for those who don’t have time to read the article:

Tesla is accruing more warranty reserves and paying less claims than GM or Ford- so the short sellers have it exactly backwards (again).

Hat tip to @VGrinshpun for finding this publication.

/2

And here are the charts from the article comparing Tesla against the other U.S. automakers.

First, warranty claims by Tesla owners are lower than GM, Ford, or Fiat Chrysler U.S. as a percent of revenue (car value at time of sale).

So much for #TeslaServiceIssues !

Next chart: Tesla is accruing more warranty reserves as a percentage of sales than the other U.S. automakers in this comparison, meaning Tesla is taking a more conservative approach in its financial statements.

Last chart: another way of looking at it is warranty reserves per vehicle sold. Here again, Tesla is much more conservative, but some of the difference in this metric owes to Tesla selling more expensive vehicles, on average, than the other makes.

There was one other metric studied (months’ reserve capacity) that ends with the same conclusion, but without a chart.

It was presented so well by the author that-rather than summarize- I’ll just let you read it.
/end

Almost forgot— here’s the link to @VGrinshpun ‘s tweet that got me fired up in the first place:

https://twitter.com/vgrinshpun/status/1189535644235849728?s=21