Tesla validated as NYT editor weighs in

The electric-car maker has been in the news for days after a scathing newspaper report. It has an important earnings announcement Wednesday.

By Bruce Kennedy Feb 19, 2013 2:30PM

Has the recent ruckus between The New York Times and Tesla Motors (TSLA) been a good or bad thing for the company? Some negative publicity about the controversial electric-car maker has kept its name and products in the spotlight -- ahead of a very important earnings report.


Earlier this month, Times reporter John Broder wrote a scathing review after a long-distance test drive in one of Tesla's premium Model S vehicles. Tesla share prices fell sharply after the article. CEO Elon Musk soon fought back, questioning Broder's journalistic integrity and wondering if he had a prejudice against electric cars in general.

In the meantime, CNBC and other media outlets have done their own versions of Broder's Tesla test drive with much better results. And several Tesla owners decided to show some solidarity with the company by also re-creating the test drive and tweeting about the experience.


Times public editor Margaret Sullivan promised to investigate the controversy, and on Tuesday she published her results: Broder's article had problems with precision and judgment but not integrity. Tesla shares jumped more than 5% Tuesday in response.Tesla Motors CEO Elon Musk drives a Model S at the Tesla factory in Fremont, Calif. on October 1, 2011 ( Stephen Lam/Newscom/Reuters)


While she believes Broder took the test drive in good faith, Sullivan notes he "left himself open to valid criticism by taking what seem to be casual and imprecise notes along the journey, unaware that his every move was being monitored."


Meanwhile, Wall Street will be watching closely Wednesday afternoon when Tesla holds its fourth-quarter earnings call and discusses its overall 2012 results. Green Car Reports senior editor John Voelcker suggests it could be a make-or-break moment for the company.


Tesla was founded a decade ago and received $465 million in Department of Energy loans in 2010 as part of the Obama Administration's campaign to further the development of fuel-efficient vehicles. While its S model production line is apparently working at full capacity, the company is also expected to have lost money for all of last year.


And Wednesday's earnings report, Voelcker says, "will be the first chance for investors and shareholders to weigh in on the company's first real financial results as an operating carmaker."


More on moneyNOW

107Comments
Feb 19, 2013 4:04PM
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Another waste of taxpayer money but what really pisses me off aside from the fact that Musk isnt even an American, is the fact that OUR government has not enforced any employment laws with tesla AND allowed musk to bring in a bunch of losers from other countries because he wanted to prove that detroit does not know how to design cars.

I guess he was wrong about that considering that the s interior looks like amateurs designed it and it was only 1 year behind schedule.
Feb 19, 2013 4:03PM
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These are cool cars to look at but don't work well with real world driving and power needs. If this was your sole car and the battery was dead or near so what would you do in a real emergency if you needed a functioning(real) car now!
Feb 19, 2013 4:02PM
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Just when I believed the Times only wrote negative, inaccurate  articles using its bias against conservatives, theTimes staff  breaks new ground.
Feb 19, 2013 3:59PM
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Sure these renewable startups need government money, but it's money well-spent. We have to get away from fossil fuels and the sooner the better. And it also dishonest not to include  the amount we subsidize fossil fuels and especially the oil companies to make a valid assessment. How much does it cost to build, maintain and put into operation an aircraft carrier? And how many of them do we have on constant patrol in the Persian Gulf Region? When you include the associated costs for all the other ships in the carrier groups, wow! And the three wars we have fought in the Middle East, recently.

 

No folks, don't let the propanda fool you. Whatever we spend to develop alternative and renewable energies is money very well spent!

Feb 19, 2013 3:57PM
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OMG!!!!!!!! A reporter that didn't honestly report a story????????  who wouldda thunk........
Feb 19, 2013 3:57PM
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as i understand things Broder did not charge the vehicle fully before leaving on his trip. also according to on board computer data he didnt keep a steady speed at all or do the things he was supposed to do to keep battery integrity. also EVERYONE else who has done the test had no issues. its a battery powered car not gas powered. dont expect the same results as you would with gas.  
Feb 19, 2013 3:55PM
Feb 19, 2013 3:49PM
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electric cars = mandatory solar cells built in the roof, imo, regardless of whos making them.

 

also high price = nobody will buy it anyway.

 

 

Feb 19, 2013 3:48PM
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WHO GIVES A **** IM TRYIN TO SURVIVE CANT AFFORD A PINTO
Feb 19, 2013 3:47PM
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The NYT is protecting the scum reporter John Broder for his lack of integrity and ability to report.  Too many times reporters invent stories to sell papers.  Just think how dull the story would have been if he reported he drove the Tesla and it performed as described.  Boring....   BUT if you allege it performed badly look at all the attention you get.  Your name splashed across the nation and on the evening news.  What is worse is that  Times public editor Margaret Sullivan defended him and didn't expose him for a, "Once upon a time...." reporter.  I will never trust John Broder again, let alone the NYT.  The good news that has come out of this is that people can clearly see that newspapers do NOT report the news, they CREATE it.  For that we can thank Broder and Sullivan
Feb 19, 2013 3:40PM
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As we move toward vehicles that get greater gas mileage, the oil companies will conspire to keep raising the gas prices so they'll be able to maintain their huge profits while selling a lower volume of product. The oil lobby is simply too well organized and too well financed for anyone to stop this movement.  Plot a graph of overall average mileage increases for vehicles and then map the same average increase of oil and gas prices.  The graphs should visibly look the same, although the actual price increase margins will easily be greater than the mileage increases.  That is why the oil companies are continuously showing record profits every year.  That is the cost of living in a capital-based economy. 
Feb 19, 2013 3:39PM
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Tesla will never make it.  Basically it's an electric Lotus.  Lotus is a piece of sh--.  Electric power is never going to be the correct answer.  Tesla = Epic Fail.  Fossil fuel for the win.  Democrats can ride bicycles if they want to be so "green".
Feb 19, 2013 3:09PM
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It was a HIT PIECE, plain and simple! They did EXACTLY the same thing in the 1980s against all types of renewable energy and, pretending to be objective, are playing the same crooked game on behalf of the fossil fuel corporate bastards that love to get us into wars for THEIR PROFITS and "price shocks" from "global instability" that WE foster with our CIA and military. The fossil fuel lobby, otherwise known as the oil oligarchy that runs our foreign and domestic energy policies, is having severe nightmares over the fact that renewable energy is here to stay and fossil and nuclear fuels are on the way OUT so they are pulling out all the propaganda stops to LIE us back to fossil fuel dependency. IT WON'T WORK THIS TIME!

 

For more info, google my article, "Hope for Viable Biosphere of Renewables; Why They Work and Fossil and Nuclear fuels NEVER DID".

 

HINT: THEFT OF THE COMMONS in the form of increased pollution and health costs makes fossil and nuclear fuels prohibitively expensive unless you can make WE-THE-PEOPLE EAT those costs!

 

Shame on the New York Times!

Feb 19, 2013 3:03PM
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the gop is always been run by the oil companies,and back when nixon took office the payback began.once the scum is removed from the house and congress things will settle down.BOHENER and his fellow crooks are running the usa  in the gound,bring home our soldiers and send these low life  cowards in their place.Wake up people while we struggle these blood suckers live like kings.time has come to get together and dragged the out into the streets
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