Tesla, John Gordon Johnson, Gordon Johnson discussed on Bloomberg Surveillance
John Gordon Johnson to continue with us on tesla with some important calls. But for global Wall Street, John it's that word shenanigans in England. It's the same thing there's been accounting shenanigans over the years course, golden Johnson joins us now from vertical group managing director. And analyst after tesla reports a really good quarter the third positive for the company the question, I guess, Gordon and you used the word shenanigans. So let's talk about that again. Whether that would imply that something untoward is gonna whether they are just sort of officially making things look better. By squeezing suppliers bringing orders for with those kind of things which one is it. Well, I think it may be that. They're the ladder in in a couple of things I want to talk about with respect to the Q one thing we definitely want to see as their warranty reserves. You wanna to see what that number looks like because we've definitely gotten comments from the test or motor club that there's issues with respect to quality. There's issues with respect to parts fallen off the car. So if that number drops that number takes away from gross revenue drops one hundred percent, downside gross profit line. So if warranty reserves are dropping at a time when complaints are increasing that is a concern, we know that all of our audiences worldwide. Gordon Johnson having accounting AKU acuity there in finance or business. They have an interest in. This does warranty reserves move the needle for Mr. musk Zeke going to say, that's inconsequential. Or is it a reason to be cautious on the stock? It's it's one of the key things. I think it does move the needle one other thing we definitely want to look at as well is we've gotten indicate. Nations that they sold large amounts of cars being returned to enterprise. I the rental car company, and you can see that with respect to the almost the more than doubling in their accounts receivable CFA level five today with Gordon is that what we're doing this goes back to revenue recognition right which in England, John it's been a big deal over the years in Germany, particularly mean, are you this is important, Gordon, you're saying one of the things we need to know is revenue. Recognition is an issue. It Mr. musk company one hundred percent in the industry when accounts receivable show, a significant increase that is indicative of cells to the commercial space. I e companies and those cells are done at huge discounts. But if tesla does not recognize the cost associated with those cells in this quarter that is a huge boost to gross margins and one other thing highlight, we look at this and see if it's covered in the queue, we've heard of multiple instances of people getting a VIN number paying for their tesla car going to pick the car up and then the. Then being reassigned to someone else that potentially enables tesla to double book car sales in the quarter, effectively selling one car to to people that boosts their cash flow. So these are all items that we think need to be looked into specifically. And we think the Tinky will provide some insights we haven't seen that yet. So golden essentially saying this quarter copied repeated we think this quarter cannot be repeated one thing we highlighted on. The prior appearance was if you look at Norway, the reason why we highlight Norway is in no way. If you buy engine card internal combustion engine car, you pay double the price. There's an excess tax that means you have to pay the price of forty five percents of cars in Norway R E right now the first month, I e October the Jaguar is available. They've outsold. Tesla by six cars are coming to America. Rose cars are coming to America in the fourth quarter. I'm sorry. You're wearing dodger blue today. Looks like the last thing we need to know. Gordon johnson. And what are the dodgers do about their pitching? I mean, forget about all the distractions. They got to get somebody to put the ball over the plate. Where is the next Colfax? I don't know. I'm I'm a dodger fade it was. It was tough last night. I can't root for the Red Sox because I believe the New York Yankees blue. So I don't know the answer to the question, but they have my backing one hundred percent. What do you want me to send back to that? You're supposed to say, they don't exist. If they don't have a Colfax, where's their Drysdale? Do you think I have a clue what you're talking about?.