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2017 Investor Roundtable:General Discussion

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Do you think it's physically possible for Tesla to participate, with a car, in F1?
That would be the ultimate marketing stunt (the Tesla race video few posts ago speaks for itself).

F1 cars use just over 100kg of petrol per race, or about 1280kWh of energy. Say an EV gets 2x as much useful energy per input energy, so it would need around 600kWh, which would weight around as much as 6 typical F1 cars. Of course, to haul that much weight around, the car would need much more useful energy than a normal F1 car uses, so you might be looking at a total of 1GWh.
Oh also, you need to charge it (or swap a 3 tonne battery).

In short, not (currenlt) any where near physically possible.
 
The lack of due diligence astounded me for a while, but I think I am starting to put it together.

I don't know if you remember how Jobs would get applause for features that had been around for a while.

Elon will sometimes do the same thing (talk to his audience with a presumption of something).

For example, when he first talked about the speed improvements he would make to the production line, it seemed clear that he had never seen the River Rouge Model T line run. If he had, he would never say such a thing about room for improvement in production rate.

The guy is well read. He, of course, knows about the River Rouge plant and Ford's book, Today and Tommorrow.

But his words, as if to children, don't show that.

I think these analysts judge Musk on what he has said, in sound bites, rather than on what he has done.

A lot of the dicotimy on Tesla is based on differences in the listener's lens.

Visual folks, like that guy's wife who saw an early RC and immediately said, "They are going to sell a lot of those."

And audio listener folks who only see sound bites, sometimes bragging about something they see as not differentiated - "just another car."

So, yeah, due diligence is not happening. And it is not all Elon's fault.

Very good summation. They way I like to think about is that half the crazy stuff Elon proclaims won't happen or it will be late. But that other half is just as amazing and he and Tesla delivers. I think it's important to call out Tesla and Space X because there are some amazing people there working there assess off. One of Elon's greatest abilities is obviously inspiration and you don't inspire people to break the limits of what's possible by being safe and coy, though I think Elon has been a bit more guarded lately with public statements. I think when he makes the statements he believes it and I think his employees believe it to and that's what really matters, not what some short sighted analyst thinks. I still read all of the more credible analysis. As much as possible. I just feel like I have a better handle on what they can and cannot deliver them most analysts and I'm sure half this forum does as well. We all have our own internal Elon translators and filters. I'll take Elon and team delivering half the impossible on time and rest later any day over some of the alternatives. I just don't see any large cap stocks with the same potential for massive growth and Elon will sleep on the manufacturing line if need be. Some bear made a sarcastic comment on Twitter that Elon would now have to sleep in the Buffalo factory now that Rive was leaving and my first thought was, well yeah, if he sees it's necessary. What other CEO could you even contemplate that as a real possibility. It's not a joke and that's why you want a guy like that who isn't just a big talker. Elon is not "All hat no cattle," Elon is personally working in the yard to make sure everything is done right. I think mockingly someone said there is about a 10% component of the stuck that is related to Elon alone and it's probably true and good.
 
From the ISS R&D conference,

"In fact, the Dragon 2 could even eventually carry Musk, who replied,
“I would like to at some point. Assuming things work out, yeah, maybe in three or four years,” when asked whether he’d like to take a ride to the International Space Station (ISS) and back aboard the craft.

Elon Musk Just Shared an Update on SpaceX’s Upcoming Manned Mars Mission
 
Oops.. I meant to post to this thread...

VIN #7 sticker spotted, curious about the actual VIN plate:

Pictures of production Model 3s

xu11ixo-jpg.236558



Could there really be 318 production vehicles so far?
 
Cap-ex is capitalized and depreciated over the expected life of the asset, so the impact on margins is not as lumpy as one would expect.

Say, for example, Tesla makes $1B of capital investments (cap-ex) to ramp up from 5k/w to 10k/w. Without getting into the nitty gritty of accounting rules here, that $1B would not all at once appear on the income statement as a massive expense in 1Q18 or 2Q18. Instead, it would appear as increased depreciation expense only as the assets purchased are depreciated throughout, say, the following one or two or however many years the management decides (and auditors agree) the life of the asset is.

[for the accounting savvy: Tesla uses units of production method of depreciation, not straight line. The example above is simplified for illustration]

Also, management has said cap-ex needed to get from 5k per week to 10k per week isn't nearly as much as getting to 5k per week in the first place.

Anyway... short answer is: not really.
What's your opinion on the Q1 results in February?
 
What's your opinion on the Q1 results in February?

4Q16 results, to be reported in first week of February, will depend very significantly on how quickly Tesla ramps up Model 3 production in 2H17. If they can ramp it up to 5,000 per week by December, I would expect positive Model 3 gross margin in 4Q17 and at or above 20% in 1Q18, which would be very positive for the stock. Another important consideration will be how quickly Tesla Energy (both Solar Roof and Powerpack orders and installments) ramp up in 2H17.

The way I see it, the stock is currently priced for slow ramp up of Model 3 production in the next twelve months, and negative Model 3 gross margin in 2H17 and slightly positive Model 3 gross margin in 1H18, so anything Tesla can show now to disprove that projection would be positive on the stock throughout the rest of 2017.

I know some here have Jan 2018 options, but those are too short-term for me. I'm positive on Model 3, as many here are, but I'd rather "place my bets" on that the significant production ramp up and bottom-line profitability (which is what really is needed for shorts to give up) will be achieved by Jan 2019 rather than by Jan 2018. Also note that the majority of my position still is in stock rather than options.
 
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Let me try.
What Oil4AsphaltOnly said. We've gone through this stuff in excruciating detail many times. Mr. Oark, in addition to repeating stuff which we debunked through intensive research months or years ago, you haven't even identified the real risks to Tesla! I have. There are three serious risks. You haven't spotted them yet? Means you haven't done your research.

Step one should be to go drive a pure electric car for a while, preferably a Tesla. Make sure you have home charging. After that it won't take much research to figure out why PHEVs are a dead end and ICEs are headed for extinction.

The Bolt is being deliberately misdistributed and it doesn't take much research to find that out. Everyone depending on LG Chem is battery-constrained. Chinese manufacturers are real, but currently expanding slower than Tesla and focused on the domestic market: it's going to be years before they hit international markets, and even then they are specifically targeting different niches from Tesla.
 
I'd certainly like that to be true and I suppose it might just be possible, but most likely they number only the first few sequentially, then randomly assign numbers in a nearby range (e.g. 1-1000) after that, as they would want to prevent VIN counting.

The VIN in the 300s was an RC. The VIN #7 is a prod.

Model 3 Owners Club on Twitter
 
Those who understand the real threat of AI are intelligent people. There is a decent chance that at some point machine will replace human. The machine (AI) will be one billion times more intelligent than human. I can't imagine how to prevent it from happening. Hopefully Elon can help slow it down by a few hundred years.

Intelligence is not one thing. It is a bunch of separate sorts of intelligence with interacting units. For a very long time, AI will be idiots savants, very good at a specific thing and with no common sense. Yes, this *can* be changed by hooking separate units together, but that's going to take a long time.

Now, this is actually the danger period, because an idiot savant can cause an awful lot of disasters. But idiots savants are also pretty easy to stop if we're overseeing them.
 
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Reactions: Intl Professor
Those who understand the real threat of AI are intelligent people. There is a decent chance that at some point machine will replace human. The machine (AI) will be one billion times more intelligent than human. I can't imagine how to prevent it from happening. Hopefully Elon can help slow it down by a few hundred years.
i can't believe how cheesy stupid this is... "if Elon said it it's true... please save us Elon"... if Elon said your mom is a robot... you'd search around your mom for a power cord. If Elon said nothing about AI... you'd have never had this thought. This is just so embarrassing to watch. "Hopefully Elon can help slow it down by a few hundred years."... jesus christ... nearly the cheesiest thing I've ever witnessed.
 
i can't believe how cheesy stupid this is... "if Elon said it it's true... please save us Elon"... if Elon said your mom is a robot... you'd search around your mom for a power cord. If Elon said nothing about AI... you'd have never had this thought. This is just so embarrassing to watch. "Hopefully Elon can help slow it down by a few hundred years."... jesus christ... nearly the cheesiest thing I've ever witnessed.
Read this book and then get back to us.

Superintelligence: Paths, Dangers, Strategies: Nick Bostrom, Napoleon Ryan: 0191091262665: Amazon.com: Books

images
 
i can't believe how cheesy stupid this is... "if Elon said it it's true... please save us Elon"... if Elon said your mom is a robot... you'd search around your mom for a power cord. If Elon said nothing about AI... you'd have never had this thought. This is just so embarrassing to watch. "Hopefully Elon can help slow it down by a few hundred years."... jesus christ... nearly the cheesiest thing I've ever witnessed.

I know there is a very good chance that I am on the @myusername ignore list, but I dont care. @myusername, you are far more blinded by your bias then the OP. Just focus on the actual results. Its pretty simple to see reality is much closer to the OPs view then yours. It is cheesy, just like admiring a great scientists or great athletes or musicians for how they inspire or make you feel. Its certainly not cold and mechanical where everything has to happen exactly like you expect. It does not matter if Elon says your mom is robot, but he could be right because he has been right enough and succeeded where "Experts" said it was impossible or a scam or just dumb. Like you know, starting a car company where none had been started successfully in decades. Or start a Space Exploration company to compete with a well established aerospace industry where your company can live or die by avoiding one to many exploding rockets. Is he a nut job, absolutely. But he is a nut job that is right more times then he is not and has the will to actually make his reality, our reality. I can assure you that you do not have this type of will as no one here is seeing your reality. Its very simple, results matter. Not the minutia between now and those results. Shorts are going to get crushed under the progress from a machine that has been set in motion. We are latterly only about 18 months from having a situation where the company cannot be stopped in its mission. So few meaningful milestones between now and then need be met to prove an enormous success and that is only based one less then 1% of the potential in autos only, much less Solar and Storage (500,000 cars out a 77M/Y world wide.) Add in Semis and Autonomous Networks and the world will change as we know it. And our children will be able to thank Elon. Its simple, ignore the minutia and just focus on the results and I think you will see Elon in a different light. Because at the end of the day, we are all measured by results.
 
Will you at least pay attention?! The Bolt isn't selling well, because it's got the features of a focus RS (speed oriented econo-hatch) and being marketed against a BMW 3-series competitor, instead of being dressed up and marketed as an Audi A3 competitor. This is entirely GM's fault and has nothing to do with it being an EV.
The Bolt is overpriced, and it lacks fast charging. But those aren't even the biggest problems it's having right now.

It's being shoved into CARB compliance states -- where it is correctly perceived as a worse value than the other BEVs available -- while other states and countries have waiting lists which are being ignored. GM is sabotaging the distribution!

On top of that, half the dealerships are actively trying to not sell it because they make more money on servicing gasoline cars. This is a problem for GM.

Give GM two years to add a fast charger, cut the price, fire the people in charge of distribution, and maybe they'll start selling more Bolts. Of course, they'll then have to build a new factory because the current one maxes out at 90K per year. And they'll have to get a new battery contract. And they still won't have a fast charging network.

I'm only going to respond to one of the pieces of idiocy from this message:
A significant market developing for BEVs is not a sure thing, - ok, ignore the Bolt. A significant market developing for BEVs is not a sure thing, If the public isn't interested in BEVs, TSLA is screwed. Maybe the public not being interested in Bolt doesn't mean it won't be interested in the TM3. But maybe that's exactly what it means. TSLA longs ascribe a 0% chance this will happen.

Because there is a precisely 0% chance this will happen. It's impossible. Your suggestion is equivalent to the idea that people will reject these newfangled "horseless carriages" and stick to their horses.

Go drive a Tesla for a month. You'll come back convinced. ICE cars are just trash, garbage, worthless junk. Given a BEV and an ICE at the same price, as long as the BEV has the crucial features (large enough battery for daily activities with a margin of error, fast charging network for road trips, service available within a reasonable distance), literally everyone will choose the BEV.


If you don't understand this, you will never understand why Tesla is going to succeed. (Or, for that matter, why BYD is going to succeed. Or why Exxon is going to go bankrupt. Or... well, a whole lot of other things.)

If you want to understand one single thing about the future of the economy, for investing purposes, this is what you need to understand. Oh, after that, we can discuss the trajectory of battery prices, production capacity, etc. (to prove that BEVs can and will be cheaper than comparable ICE cars), but until you understand that a BEV at the same price is superior to an ICE car, you just won't get it.

I was actually convinced long before I drove a Tesla, because I did intensive research into the characteristics of electric motors and batteries vs. gasoline engines and transmissions, and intensive research into the economics of electricity vs. the economics of oil.

There is only one car market. It is a market for battery-electric vehicles. ICE vehicles are an *inferior good*, which will be purchased by poor people if they are cheaper than the BEVs that are genuinely desired. ("Inferior good" is a technical economic term meaning that as people get richer they buy them less, and ICE vehicles are an inferior good in that sense -- as is now proven by data. But it also means exactly what you think it means: they're inferior.)

This is the last piece of advice I'm going to give you, Mr. Oark, because until you understand this point you will keep failing to understand what's going on in Tesla. And BYD. And the car industry in general. And the oil industry. And basically the entire world economy. As an investor, I tend to think that understanding the trajectory of the world economy is probably useful. You don't understand it. Once you understand it will probably become possible to discuss things with you.
 
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