As a former Tier 1 supplier employee, I worry about the supply base... 2008 was rough...
Fortunately, Tesla is highly vertically integrated with sufficient volume to keep their parts supply going.
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Are you concerned about Tesla's survival?
- Thread starter Archduke
- Start date
As a former Tier 1 supplier employee, I worry about the supply base... 2008 was rough...
Fortunately, Tesla is highly vertically integrated with sufficient volume to keep their parts supply going.
EV-lutioin
Active Member
EV-lutioin
Active Member
Oh no, I read the news... fires, brakes, crashes, cash burn, tents, waste, "whistleblowers", unions... I start to worry. Then I get in my car, I smile and giggle and all my worries wash away. Either invest in stock or buy a car, this company is going nowhere but up.
Yep...I don't care about them at all either. Though if Aston Martin, Ferrari, McLaren and, to a lesser extent, Porsche (SUVs...really?!?!) start producing all electric versions of their cars, I could care again.
suwaneedad
Member
No worries!
The stock is up, but not even trading at levels most recently seen in June. So while the rally in price today is interesting, it's just a recovery in price.
The really interesting story to me today, w/r/t the stock, is that trading volume was more than triple the norm. This indicates to me that a whole bunch of shorts finally have had enough and took their lumps today. The jump today from +10% to +15% would support my suggestion that shorts came to work this morning and got approvals from their bosses to begin unwinding some of the short positions. Short interest is reported on a lag, so it'll be a while before we know for sure, but no short wants to be the last guy to unwind, that's for sure, so it's possible we will continue to see upward price pressure on the stock from continuing short-covering. Good times, for the FanBoys at least.
To be fair, yesterday's reports were misleading, seemingly often intentionally so. They focused on a 9% earnings miss, completely ignoring the fact that revenues beat estimates, and much more importantly, that cash on hand was significantly better than expected and that they confirmed M3 profitability. And these last two points were the ones everyone was actually watching for.
I did notice that reports were much more positive after the market opened today. I saw almost no FUD pop up from legitimate news organizations in my feed today
No, and never have been.
I have in the past been worried that Tesla stockholders would get cleaned out, while someone else takes over the company in a refinancing (such as a buyout by Google) which pays the existing stockholders very little. But that's not a possibility any more either.
You should never ever look just at the bottom lines of financial statements. All the interesting stuff is in the footnotes. Anyway, once you read all the footnotes, it becomes clear that Tesla is in a *great* position for permanent survival (though there is still IMO a possibility that the stock price will go down or underperform the S&P)
I have in the past been worried that Tesla stockholders would get cleaned out, while someone else takes over the company in a refinancing (such as a buyout by Google) which pays the existing stockholders very little. But that's not a possibility any more either.
You should never ever look just at the bottom lines of financial statements. All the interesting stuff is in the footnotes. Anyway, once you read all the footnotes, it becomes clear that Tesla is in a *great* position for permanent survival (though there is still IMO a possibility that the stock price will go down or underperform the S&P)
Ihor Duwansky who analyzes this stuff says there was very little short covering -- he says it was all *longs*. The shorts probably get margin-called tomorrow.
RobStark
Well-Known Member
I think we ought to be careful about sentiments like that. The US auto industry employs a lot of people. If GM/Ford/FC were to go away, the vacuum would be filled by a lot of Chinese imports. The best outcome is for the US industry to change direction. And I suspect (with a bit of kicking and screaming) they will.
