2017 Investor Roundtable: TSLA Market Action

[mongo]

Tesla is simply selling the rights to the multi-decade solar system receivables in return of cash now. This is nothing new and has nothing to do with Tesla Energy “ramp.”

This type of transaction is not new, but I think it bodes well.


Non-CPA opinions coming:
This is sort of equivalent to selling land for cash v.s land contract. Both are profit, but one gives you cash today you can do something else with. (You could also get a loan against the future income from the land contract, I suppose)

How is this reported within quarterly financials?

Depending on agreement, higher cash and lower liabilities, should example in Q3 numbers.

Does this indicate Tesla Energy is ramping or are there other factors?

It means that TE is able to turn the expense of a solar installation back into cash now, verses long term lease payments. Depending on numbers, it could have a net positive cash effect after expenses. It gives TE more funds to do more installations (faster turn around/ build rate)

Do you think this is priced in to the stock price at all?

I think most analysts are using a low value for TE (if any). Showing the ability to monetize solar installations within a quarter enables TE to grow faster.

 

[winfield100]

Seeking Alpha is a platform to 13,000+ contributors with varying opinions on thousands of stocks.

/lurk mode mostly off
and an amazing noise to signal ratio, at least in regards to TSLA
wade/slog through 100's if not 1,000's to find rare nuggets of useful information
interspersed with non sequitors
(LOL, "Lucifer our Lord?")
(ROFL "rolling options for losing leverage?")
with creshendo's of choirs of identical shorts overwhelming everything,
(not bots tho, but very very low level AI's)
looking for clicks and comments @ a penny each to make up for their losses
/lurk mode mostly on
(semi apologies, eh)

 

[Papafox]

This Wednesday Electrek.com article says TSLA was successful in Missouri court, defending their right to sell cars after a challenge by car dealers.

"
Earlier this year, Tesla was forced to temporarily close its stores in Missouri after the Missouri Automobile Dealers Association (MADA), a trade group representing car dealers in the state, tried to have Tesla’s dealer license revoked.

A three-judge panel of the Missouri Court of Appeals ruled in favor of Tesla this week and dismissed the case in a big win for the automaker’s continuous fight for direct sales."

 

[ValueAnalyst]

/lurk mode mostly off
and an amazing noise to signal ratio, at least in regards to TSLA
wade/slog through 100's if not 1,000's to find rare nuggets of useful information
interspersed with non sequitors
(LOL, "Lucifer our Lord?")
(ROFL "rolling options for losing leverage?")
with creshendo's of choirs of identical shorts overwhelming everything,
(not bots tho, but very very low level AI's)
looking for clicks and comments @ a penny each to make up for their losses
/lurk mode mostly on
(semi apologies, eh)

Yes - it's best to look at SA in two parts: TSLA and Other
Similar to looking at traditional automakers in two parts: ICE and EV

 

[Irishjugg]

True, what if Tesla barely crossed 400 in the year 2020?? It will be a waste of time.

Try cryptocurrency.. It is the real deal.

Oh for goodness sake. Shiny object syndrome like woah

 

[bdy0627]

Evidently there is huge premarket volume, down about 1%.

 

[bdy0627]

This may trigger some stops.

 

[bdy0627]

Looks like a pretty typical morning pattern to me.

 

[Gerardf]

Agiain a big spike in pre-market today (860k shares this time @08.01). Last two times that resulted in a big short attack.

Shorts maybe desperate to try to push this below 300 before the ramp hits them ?

 

[Richgoogol]

Tesla stock downgraded to sell on signs Model 3 demand is starting to flag

 

[Todd Burch]

Tesla stock downgraded to sell on signs Model 3 demand is starting to flag

This will undoubtedly take the prize for most idiotic article of the day.

 

[jeewee3000]

I'm sitting on some dry powder since TSLA was 340, and I've never been more inclined to buy some stock. Will we see sub 300? If we breach it, it should trigger a lot of orders, so I should be able to get in at 290 or lower.

My gut tells me we won't breach 300, so this should be my best deal before M3 ramps up. Thoughts?

 

[Waiting4M3]

This will undoubtedly take the prize for most idiotic article of the day.

You're misunderestimating them, they can go lower.

 

[Waiting4M3]

I'm sitting on some dry powder since TSLA was 340, and I've never been more inclined to buy some stock. Will we see sub 300? If we breach it, it should trigger a lot of orders, so I should be able to get in at 290 or lower.

My gut tells me we won't breach 300, so this should be my best deal before M3 ramps up. Thoughts?

TSLA did breach 300 on intraday basis several times already since Nov 1, got bought up. So yes I think it triggers a lot of orders, but buy type IMO.

 

[bdy0627]

Tesla stock downgraded to sell on signs Model 3 demand is starting to flag

Looks like a rehash of the note from earlier in the week. Essentially, Tesla is developing a demand issue because they can't produce enough of their highly in demand product (Model 3). Nevermind that nearly anyone reserving the Model 3 was told not to expect it until well into 2018.

 

[bdy0627]

This will undoubtedly take the prize for most idiotic article of the day.

Well, that may be a tough call today. Here's another;
Problem with Gigafactory Leads to Global Shortage of Cylindrical Batteries

 

[Todd Burch]

Well, that may be a tough call today. Here's another;
Problem with Gigafactory Leads to Global Shortage of Cylindrical Batteries

Quick! Someone start manufacturing more cylinders!

 

[bdy0627]

I'm sitting on some dry powder since TSLA was 340, and I've never been more inclined to buy some stock. Will we see sub 300? If we breach it, it should trigger a lot of orders, so I should be able to get in at 290 or lower.

My gut tells me we won't breach 300, so this should be my best deal before M3 ramps up. Thoughts?

Yep, totally agree on both thoughts. I'm becoming less convinced that we will see the $290s again but it's possible. My suggestion is to buy 1/3 or 1/2 at this level.

 

[stealthology]

I'm sitting on some dry powder since TSLA was 340, and I've never been more inclined to buy some stock. Will we see sub 300? If we breach it, it should trigger a lot of orders, so I should be able to get in at 290 or lower.

My gut tells me we won't breach 300, so this should be my best deal before M3 ramps up. Thoughts?

I'm pretty much hoping the market will stay strong until we have the ramp up. Christmas rally. Weakness in the broader market will IMO guarantee sub 300, but I'd like to think there will be sub-300 buyers who see the ramp up right around the corner.

Keep in mind shorts have moved in during the past 30-45 days (short interest). There's still only been less than 1,000 M3's produced, and during the last call, it didn't sound like Elon was too confident of a 1,000/week production rate at end of year. Tesla did of course state they expect 5,000/week production by end of March next year.. which I doubt but I'd love to be proved wrong.

 

[cheshire cat]

This Wednesday Electrek.com article says TSLA was successful in Missouri court, defending their right to sell cars after a challenge by car dealers.

"
Earlier this year, Tesla was forced to temporarily close its stores in Missouri after the Missouri Automobile Dealers Association (MADA), a trade group representing car dealers in the state, tried to have Tesla’s dealer license revoked.

A three-judge panel of the Missouri Court of Appeals ruled in favor of Tesla this week and dismissed the case in a big win for the automaker’s continuous fight for direct sales."

and now they should sue for loss of trade