Read The Full Article On: Teslarati
Tesla stock has taken a hit as Wall Street reacted to the release of the company’s 10-Q form. Craig Irwin of Roth Capital, for example, downgraded Tesla from a “Neutral” to a “Sell” in the middle of Tuesday’s trading day partly due to concerns about the warranty adjustments listed in the company’s SEC form. There’s only one small issue: Tesla’s warranty figures are not unusual for the auto industry.
The electric car maker’s 10-Q form indicated that the company’s warranty expense fell in the third quarter. Barron’s noted that this was a sign that Tesla’s accounting for the third quarter might be aggressive, but a look at the car industry, in general, shows that the electric car maker is not an outlier at all when it comes to warranties.
Read The Full Article On: Teslarati