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I am not an expert on this by any means, but I think it is a mistake to think that Tesla will be "Splitting the profit 50/50" with a partner. I assume the way that this works is that Tesla sets up a new company, something like "Tesla Shanghai manufacturing Corp", and that company goes into business 50/50 with the Chinese partner. The joint partnership will make the cars and sell them to Tesla parent company at some wholesale rate that gives the joint venture a return on investment, but is not half the profit of the final car sale. It would be crazy for the partner to get half the profit from the autopilot, that they had no part in developing, the marketing and sales they didn't pay for, etc. I don't think the profit side of things is a concern for a joint partnership. On the other hand, the intellectual property issues are a real concern, as well as the prospect of state meddling.
My hope on the intellectual property front is that most of the secret sauce in the manufacturing process is the software to control the robots, not the line itself, and it will be developed in CA, then simply implemented in the Chinese factory. Elon has hinted at this I believe, talking about the factory as a product, and mentioned the complexity of the software in the last earnings call. Hopefully they can just license the factory process, and software, as a product to the joint venture, and don't have to give them the source code for it.
My hope on the intellectual property front is that most of the secret sauce in the manufacturing process is the software to control the robots, not the line itself, and it will be developed in CA, then simply implemented in the Chinese factory. Elon has hinted at this I believe, talking about the factory as a product, and mentioned the complexity of the software in the last earnings call. Hopefully they can just license the factory process, and software, as a product to the joint venture, and don't have to give them the source code for it.
jhm
Well-Known Member
What do you mean by "U can't touch this"? Would you mind breaking it down for us?
larmor
Active Member
Instead of making cars cheaper over seas for export, telsa is making a factory that makes cars cheaper wherever, and now putting it right into the largest emerging market, China, where EV market is going to grow exponentially... Good job telsa!
T3slaTulips
Member
Wow. That looks like a license to print money.
My favourite commentary on human nature and getting employees, colleagues, or (gasp!) management/executives to understand what they're doing. How could they come up with such a simple scene to point out the difficulties with human communication so well? That and the rabbit with big, nasty teeth.You know the rules people!
(Start at time 3:35)
Thanks, that helps to calculate different scenarious.
However, I still do not understand what happens if the price goes below the strike. E.g. I sold 10 contracts of a 300 strike put and the price is $299.99 today. Does the put execute immediately? Based on my calculations, margin requirement will be not enough to buy 1000 shares of TSLA for $300. What happens then?
MartinAustin
Active Member
State-owned enterprise being the partner underscores the seriousness of the Chinese government in accelerating the adoption of BEVs in China. Not only is China's GHG emissions a problem for the entire world, the populations of China's biggest cities can't see where they're going! And even the simple act of breathing doesn't have the usual pro-life benefits. They need BEVs so bad, it's in the public interest to get it done now rather than wait for independent for-profit companies to ooze in from outside with their cautious business plans.
TSLA will end the day around $385 IMO, unless some major analyst weighs in today with some bullish sentiment. (in which case... higher)
TSLA will end the day around $385 IMO, unless some major analyst weighs in today with some bullish sentiment. (in which case... higher)
jhm
Well-Known Member
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