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2017 Investor Roundtable:General Discussion

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Yes, the value of solar roofs for Tesla is that it removes an obstacle for buying their cars. If there aren't compelling solar options then people will be slow to adopt solar and that will make it slower to adopt EVs. One example is with Model 3 ramp, lots of new owners are going to be surprised with how much their electric bill will go up, especially in California (one of Tesla's biggest markets and a market that penalizes high electric usage). So, it's imperative for these new M3 owners to have compelling and easy options to adopt cheaper solar energy. Solar roofs is one of those options. And even if it doesn't make Tesla much money, ever, it still provides immense value if it redefines the solar landscape. But after other competitors release their own solar roof products and if they are competitive to Tesla's, then the need for Tesla to keep making solar roofs is reduced.

Ron Baron stated in his recent interview that demand for electricity will rise as a result of high EV demand. Since they're unable to build new electrical plants due to licensing and cost, which only generates 10% profit of a $500 million investment, where are people going to shop for a cheaper alternative than Edison? Elon is playoff 3D chess here, the electrical landscape will look very different in the near future.
 
You may not, but I'll definitely ask you next time I need advice from a total stranger. You seem cool.
Total stranger, eh? That's a bit rich coming from an anonymous poster on the internets who offers "premium" paid subscription on a website (seeking alpha) where the editors have a definite anti Tesla bias.
 
I estimate that the Model 3 reservations have exceeded 600k mark as of May 15, 2017. I expect this number to exceed 1.0 million by end-17, and 1.5 million by end-18 as the number of orders continues to exceed the number of cars delivered throughout 2018.

Based on this, I continue to expect Tesla to once-again significantly accelerate its production plan for the next three years, in-line with my previous prediction.

Tesla Model 3 Reservation Counter
 
Also, no one has a right to an audience though speakers often admonish crowds for booing.

True.The problem is that there is no easy way to filter out unwanted content.
Since I put ValueA on ignore, half of all posts I see are nonsensical, in response to something he's said.
He seems to create as much controversy and push-back as couple of famous bears in their prime...
But it doesn't matter, I guess all opinions are welcome.
If the rest of you can just answer a bit less? Please?
 
Any merit to the claims that the storage business dropped in this latest quarter? If true, whats the explanation behind the drop?
energy.JPG


I don't know what claims you speak of but revenue is up 62% over last quarter.
 
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If cost would be the deciding factor in roofing, than every villa in the world would have asphalt shingles on it, they don't. People are so used to think that solar products are all about cost, that they use false assumptions for this product .. Kind of, a tablecloth is cheaper than stuff from Lagerfeld so everyone will dress him/herself in a potato sack so if ConsumerReport runs the numbers right, Tesla has a very compelling product for the luxury market.

btw. and even if the solar business isn't super profitable, as an investor I support it, it's important for the Tesla brand to be seen as the solution for sustainable transportation. It's certainly how I became a Tesla enthusiast, if GM would have been so serious about clean electrification of the world, I probably would have become a GM fanboy and hang around the GM boards
 
Total stranger, eh? That's a bit rich coming from an anonymous poster on the internets who offers "premium" paid subscription on a website (seeking alpha) where the editors have a definite anti Tesla bias.

Ugh. You have no clue how SeekingAlpha works. I haven't found any of your posts useful. And now you've wasted my time for the third time.

Ignored.
 
Ok, I'm way late to this thread and certainly haven't read 700+ pages, so I'm not sure if this has been answered already. In looking at their recent SEC filings at Tesla - Quarterly Report, I'm wondering about page 37 "In the three months ended March 31, 2017 we used cash of $276.6 million towards Gigafactory construction..."

From what I can figure, little or not none of that shows up on the statement on page 5 as either operating expenses nor loss from operations, correct? (And, if that's the case, little or none of that $276.6 million contributed to Tesla's ~$330 million loss in Q1 2017.)

I'm not an accountant and don't know how this is handled.
 

Ha! Looks like the counter and I are pretty close.

But imo, if new reservationists who sign up now has to wait until April 2019 (meaning, someone who signs up after the July final reveal event will wait until 2020/21?!)... possible, but I don't see that as a likely scenario.

This is primarily why I expect Tesla to significantly increase its production plan. The opportunity is to big not to.
 
Ok, I'm way late to this thread and certainly haven't read 700+ pages, so I'm not sure if this has been answered already. In looking at their recent SEC filings at Tesla - Quarterly Report, I'm wondering about page 37 "In the three months ended March 31, 2017 we used cash of $276.6 million towards Gigafactory construction..."

From what I can figure, little or not none of that shows up on the statement on page 5 as either operating expenses nor loss from operations, correct? (And, if that's the case, little or none of that $276.6 million contributed to Tesla's ~$330 million loss in Q1 2017.)

I'm not an accountant and don't know how this is handled.

Monies spent on gigafactory are "capital expenditures." On the cash flow statement, they appear as cash outflows used in investing activities; they are "capitalized" on the balance sheet as an asset (specifically in land and buildings or construction in progress); and depreciated once production starts using units of production method on the income statement.

GAAP tries to match expenses to the time period they generate revenues, and generally does a fair job, but there are key situations where it falls short and can be too conservative for a hyper-growth company, like Tesla.

Welcome to TMC.
 
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