Ties up too much capital. The return on capital is ~10-15% to provide all that hardware, while they've been getting better than 50% on all those factory build-outs (SWAG, but shouldn't be too far off)
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Ties up too much capital. The return on capital is ~10-15% to provide all that hardware, while they've been getting better than 50% on all those factory build-outs (SWAG, but shouldn't be too far off)
dc_h
Active Member
I think Tesla needs to charge about 14 cents a KWh to make a return that would fund a bond offering. This would be about 7%, which might not be enough based on PR credit history. I think 15 cents would provide an 8 to 8.5% return. The key is if someone could underwrite a bond offering, will the existing utility declare bankruptcy and what government agencies and cooperation is required? I think they would need to partner with several solar cell producers and get Samsung onboard to crank out some of the batteries.
I think (as strictly an amateur and consumer) that this is the line Sweden has taken, splitting the few big utilities into 1) power generation, 2) power transfer and 3) power selling. There are now many companies and former local utilities competing for customer money, to an extent where it's actually foolish to stay with one supplier after the alluring low price no longer applies (usually one year) and there are businesses (i.a. Elskling) doing nothing else than comparing prices. Of course, this will not last forever, but I know my daughter picks up a new contract periodically, and her prior supplier can't match the low marketing price. Suppliers buy power on the spot market, and the consumer gets two bills, one from the owner of the power lines. And of course it's all taxed, plus sales taxed.
ValueAnalyst
Closed
Perfect. I just wanted to know the assumption(s) involved. This is very helpful.
It seems to me that is a brilliant move.
DragonWatch
Small FootPrint
From my perspective, GM could not burry their grandmother let alone Tesla. I have watched auto makers and their management styles forever ~ you know since the gal driving a pink Cadalac she bought it on food stamps. Or, maybe it was the unknown owner complaint because the human robot on the assembly line left a coke bottle in door.
It is hard to lend credibility to a company where the President had to relieve (fire) the CEO for incompetence. Apparently the governing board should have been tossed too. Shall we talk about government bailouts/subsidies and GM or is this not the time
GM is my least favorite auto manufacturer. The only US made car we ever bought new, if you want to call it US made, was a Saturn ~ I will save you the negative language I want to use, but. . . That was the only US auto, we ever bought new together, or since 1973. We have owned over twenty cars, of which 75% were new, and Tesla is not included in these numbers. My wife likes new cars, what can I say While never is a very very long time, I will never ever buy a GM product again. Only thirty years plus or minus left on my physical body contract, depending on who likes me or not.While I have a low opinion on the citizens for failing to stand up against oppression; I truly believe that as people get their hands on a Tesla M3, an MY or . . . They will be like me ~ I will probably without question never, ever buy anything but a Tesla
Tesla would have to make a 180 degree turn in management style and quality product for me to change my opinion of them. If you think turnover in management is just cause, think again.If GM had ever invested in quality as opposed to a quick dollar, maybe the things I've mentioned and experienced would not have formed this opinion. But then that was their management style and their opinion of my fellow citizens. If you do not respect your customers, your company will never succeed. Existing is not the same as succeeding.
Bottom line, GMs threat should not be viewed like a grain of sand or salt, but more like a wet bag of dog poo
Thank you to all that kept Tesla in the green today
erthquake
Active Member
And he just said that the Semi specs are better than anything he's seen reported on it.
ValueAnalyst
Closed
This shouldn't affect SP much, if at all, but it may create a good opportunity for 2020 LEAPs.
dc_h
Active Member
The key is Tesla should not be the utility, or should not tue up their own capital, except insofar as building the factories to make the solar cells and batteries.
Going to financial markets to fund a utility would be a Chanos fantasy.
Design studio Model 3 for non-employees open in 6-8 weeks Elon standard Time... I fear the 5k/week production rate end of 2017 is off the table.
From my perspective, GM could not burry their grandmother let alone Tesla. I have watched auto makers and their management styles forever ~ you know since the gal driving a pink Cadalac she bought it on food stamps. Or, maybe it was the unknown owner complaint because the human robot on the assembly line left a coke bottle in door.
It is hard to lend credibility to a company where the President had to relieve (fire) the CEO for incompetence. Apparently the governing board should have been tossed too. Shall we talk about government bailouts/subsidies and GM or is this not the time
While I have a low opinion on the citizens for failing to stand up against oppression; I truly believe that as people get their hands on a Tesla M3, an MY or . . . They will be like me ~ I will probably without question never, ever buy anything but a Tesla
If GM had ever invested in quality as opposed to a quick dollar, maybe the things I've mentioned and experienced would not have formed this opinion. But then that was their management style and their opinion of my fellow citizens. If you do not respect your customers, your company will never succeed. Existing is not the same as succeeding.
Bottom line, GMs threat should not be viewed like a grain of sand or salt, but more like a wet bag of dog poo
Thank you to all that kept Tesla in the green today
1955, 1956 & 1957 Chevys were good.
Looks like Elon is prepping the sleeping bag for some quality time on the M3 line.
I hope they are able to work out the kinks quickly. It looks like the reality is that the line won't be running smoothly until December. The question is - once the bottlenecks are resolved, will production jump up to 5k/week in short order? That's what Elon seems to be insinuating.
Again - short-term issue - but will probably impact Q3 earnings and SP for now. Irrationality will probably drive the price down to ~300 before December if I had to guess. I'll be waiting with my wallet.
I hope they are able to work out the kinks quickly. It looks like the reality is that the line won't be running smoothly until December. The question is - once the bottlenecks are resolved, will production jump up to 5k/week in short order? That's what Elon seems to be insinuating.
Again - short-term issue - but will probably impact Q3 earnings and SP for now. Irrationality will probably drive the price down to ~300 before December if I had to guess. I'll be waiting with my wallet.
The Blue Owl
Endangerous Herbivore
Yes, I like him too. It's worth taking note of his Tipranks standing: #204 out of 4698 analysts, with an average return of +17.6%.
Guess what is the average return of John Lovallo of Merryl Lynch? -21.6% (#4596 out of 4698).
How about that of David Tamberrino at Goldman? -18.4% (#4502 out of 4698).
DragonWatch
Small FootPrint
Yeah, but I left high school a very long time ago
I used to run the 100 yard dash in 10.4 seconds('68) but now they measure it in meters
Did I say I have since pulled my hamstring three times and twisted my left knee in 2015?So, while the '55, '56 and '57s Chevys are good auto classics, they like me should not continue to rest on our laurels
Did I say the school news paper listed the second place finisher as the winner with a photo clearly of me in front Guess the media could not get it right even then
He had more electoral college votes.Did I say the school news paper listed the second place finisher as the winner with a photo clearly of me in front
DragonWatch
Small FootPrint
Why? Has the us president sang?
Every time someone underestimates my company (Tesla) they get their butt kicked
DragonWatch
Small FootPrint
Actually yes.
I lost the Senior Class Election, and my mother demanded a recount. The school principal told her that the ballots had been tossed already
A prieview of things to come No hanging chads Do not worry, I assumed I lost it fair and square. My opponent promised free ice cream (seriously) I just told them I was the best candidate and listed my accomplishments ~ no wonder I lost
Mike Smith
Active Member
From Fred Lambert:
"As for Model 3 production, Musk reiterated that Tesla is still in “production hell”. We are going to have a more in-depth report on what that means so far and how it can possibly affect delivery timelines with some exclusive information. Stay tuned."
"As for Model 3 production, Musk reiterated that Tesla is still in “production hell”. We are going to have a more in-depth report on what that means so far and how it can possibly affect delivery timelines with some exclusive information. Stay tuned."
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