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This is a partial transcript of the Q4 2018 earnings call. There is a strong case to be made that the information was not market moving. Operator Thank you. O

This is a partial transcript of the Q4 2018 earnings call. There is a strong case to be made that the information was not market moving. Operator Thank you. Our next question is from Colin Rusch with Oppenheimer. Colin Rusch Thanks so much. Can you talk a little bit about the geographic dispersion for the guidance for 2019, where you're expecting the Model 3s to sell through as well as the other models? Elon Musk Well, I think we did, actually. Yes, it's clear in our letter. Deepak Ahuja We indicated in Q1, we will start delivering Model 3s in Europe and China. And we also shared a chart showing the potential market size for midsized premium sedans in North America, Europe and Asia, suggesting those markets could be even bigger. So I think that gives a good sense of where we'll be. And we'll launch the right-hand drive version at some point to go to the other markets. Elon Musk Yes. Maybe in the order of 350,000 to 500,000 Model 3s, something like that this year.

LiquidSky 8y ago
It doesn't matter if it's market moving. Or rather, the terms of his settlement are that all of his communications need to be pre-approved by counsel to determine what is market moving. He didn't get the pre-approval so he's broken the agreement.
- pbreit 8y ago
  The actual settlement notice says "put in place additional controls and procedures to oversee Musk’s communications" which appeared to happen in this case. [1] Also, since the 500,000 number was already public and referring only to Model 3s, it's entirely plausible that 500,000 total cars for the year is not material. The SEC conveniently leaves out this exculpatory evidence. 1: https://www.sec.gov/news/press-release/2018-226 https://www.sec.gov/news/press-release/2018-226
  - ceejayoz 8y ago
    The press release isn't the full detailed set of conditions. I don't know that the contract is publicly released, but https://www.theverge.com/2018/10/16/17983032/elon-musk-sec-securities-fraud-settlement https://www.theverge.com/2018/10/16/17983032/elon-musk-sec-s... says: > The company also has to employ a lawyer who will oversee all of Musk’s communications, including his tweets. This person will have to pre-approve any message coming from Musk that could have a material impact on the company’s stock price.
  - elliekelly 8y ago
    It’s not exculpatory because by Tesla’s attorneys own admission Musk failed to follow the procedures put in place per the settlement agreement. It doesn’t matter what he tweeted. It matters that he tweeted something related to Tesla and that something wasn’t pre-approved by Tesla’s legal department before he tweeted it.
reitzensteinm 8y ago
From the 8-K that same day: > In total, we are expecting to deliver 360,000 to 400,000 vehicles in 2019, representing a growth of approximately 45% to 65% compared to 2018. The only sane interpretation is that Musk was referring to the potential market size to build on Deepak's statement. If Musk was referring to anticipated 2019 Model 3 production/sales, then their 8-K guided for 360-400k total vehicles, and Musk on the call a few hours later guided for 450-600k vehicles (assuming historical S/X sales). Which would be nuts.

LiquidSky 8y ago

It doesn't matter if it's market moving. Or rather, the terms of his settlement are that all of his communications need to be pre-approved by counsel to determine what is market moving. He didn't get the pre-approval so he's broken the agreement.

pbreit 8y ago
The actual settlement notice says "put in place additional controls and procedures to oversee Musk’s communications" which appeared to happen in this case. [1] Also, since the 500,000 number was already public and referring only to Model 3s, it's entirely plausible that 500,000 total cars for the year is not material. The SEC conveniently leaves out this exculpatory evidence. 1: https://www.sec.gov/news/press-release/2018-226 https://www.sec.gov/news/press-release/2018-226
- ceejayoz 8y ago
  The press release isn't the full detailed set of conditions. I don't know that the contract is publicly released, but https://www.theverge.com/2018/10/16/17983032/elon-musk-sec-securities-fraud-settlement https://www.theverge.com/2018/10/16/17983032/elon-musk-sec-s... says: > The company also has to employ a lawyer who will oversee all of Musk’s communications, including his tweets. This person will have to pre-approve any message coming from Musk that could have a material impact on the company’s stock price.
- elliekelly 8y ago
  It’s not exculpatory because by Tesla’s attorneys own admission Musk failed to follow the procedures put in place per the settlement agreement. It doesn’t matter what he tweeted. It matters that he tweeted something related to Tesla and that something wasn’t pre-approved by Tesla’s legal department before he tweeted it.

reitzensteinm 8y ago

From the 8-K that same day: > In total, we are expecting to deliver 360,000 to 400,000 vehicles in 2019, representing a growth of approximately 45% to 65% compared to 2018. The only sane interpretation is that Musk was referring to the potential market size to build on Deepak's statement. If Musk was referring to anticipated 2019 Model 3 production/sales, then their 8-K guided for 360-400k total vehicles, and Musk on the call a few hours later guided for 450-600k vehicles (assuming historical S/X sales). Which would be nuts.