General Discussion: 2018 Investor Roundtable

[hobbes]

Carlos Ghosn giving a long interview at Paris Motor Show (I will be there to look at the Model 3 later this week ) - he thinks of Tesla as an ally to bring EVs to the mass market, not a competitor (discussion of Tesla starts at 4:05):

 

[elasalle]

Are there workarounds to Taxes/Tarriffs by doing final vehicle assembly in country/region of delivery (e.g. China) ?
Does Tesla get any tax break in EU due to final assembly being in Tillsburg?

 

[mongo]

Are there workarounds to Taxes/Tarriffs by doing final vehicle assembly in country/region of delivery (e.g. China) ?
Does Tesla get any tax break in EU due to final assembly being in Tillsburg?

Yes and yes.
Due to importing parts at their value + tariff, and then selling assembled cars at MSRP.

 

[elasalle]

Yes and yes.
Due to importing parts at their value + tariff, and then selling assembled cars at MSRP.

So with some planning, some tents could be sprung up in China and S/X assembled there and bring down cost to better compete in local market?

 

[mongo]

So with some planning, some tents could be sprung up in China and S/X assembled there and bring down cost to better compete in local market?

Possibly, may be part of Shanghai plant plan.
Interesting....

 

[30seconds]

So with some planning, some tents could be sprung up in China and S/X assembled there and bring down cost to better compete in local market?

I’m pretty sure Tesla would rather make the 3 there be S or X. Also given improvements in manufacturing process it should be easier to do.

 

[Buddyroe]

"But with the Bolt a sudden success, a Tesla Model 3 killer, at least, is what GM has on its hands."

I wish Tesla would produce a blog where they call out publications such as Business Insider and remind them of some of the stupid articles they've published - and most importantly, hound them until they admit they were wrong. The quote above is from an article BI did in January claiming the Bolt was better than the M3.

I'd love to ask the writer - "so who's killing who b###h?"

The Chevy Bolt is Crushing the Model 3

 

[ChrisA]

Guys, what about Gene Munster for Chairman? Here's the logic: He understands the company and wants it to succeed long-term, but he has also been thoughtful and critical in ways that you would want a person in that position to be. He's also followed Apple from the days when it was virtually a mid cap company to a mega cap now -- the trajectory Tesla would like to follow. Overall, he would be a steward for the shareholders, which is what you want a Chairman to be.

 

[larmor]

How about we clone G Shotwell?

 

[Rarity]

Gene Munster wouldn't be independent because his fund is invested in TSLA.

 

[scaesare]

"But with the Bolt a sudden success, a Tesla Model 3 killer, at least, is what GM has on its hands."

I wish Tesla would produce a blog where they call out publications such as Business Insider and remind them of some of the stupid articles they've published - and most importantly, hound them until they admit they were wrong. The quote above is from an article BI did in January claiming the Bolt was better than the M3.

I'd love to ask the writer - "so who's killing who b###h?"

The Chevy Bolt is Crushing the Model 3

Well, @bro1999 has been eager to report on all such articles about the Bolt, so given his investment in uncovering the facts, perhaps we can nominate him for this duty?

 

[RobStark]

Carlos Ghosn giving a long interview at Paris Motor Show (I will be there to look at the Model 3 later this week ) - he thinks of Tesla as an ally to bring EVs to the mass market, not a competitor (discussion of Tesla starts at 4:05):

When GM and Chrysler went to Washington DC to beg for a bailout Ford CEO went along for the ride.

Ford CEO Alan Mulally said if GM and Chrysler ceased as a functioning business it would take dozens of Tier 1 suppliers and hundreds of Tier 2/3 suppliers leaving Ford unable to make cars and drag it toward bankruptcy.

Although Ford did not need or request direct assistance for bailout for itself it lobbied for GM and Chrysler to get a bailout.

In the auto biz your most direct competitors are your frenemies.

 

[Buddyroe]

When GM and Chrysler went to Washington DC to beg for a bailout Ford CEO went along for the ride.

Ford CEO Alan Mulally said if GM and Chrysler ceased as a functioning business it would take dozens of Tier 1 suppliers and hundreds of Tier 2/3 suppliers leaving Ford unable to make cars and drag it toward bankruptcy.

Although Ford did not need or request direct assistance for bailout for itself it lobbied for GM and Chrysler to get a bailout.

In the auto biz your most direct competitors are your frenemies.

There's a WHOLE lot more to the story though. I get your point here, but any such mention of the words, "Ford" and "bailout" need to have an "*" with the true explanation as to why they didn't need, and couldn't have gotten a "bailout". I am quite certain you know the details.

 

[Ovulation]

Guys, what about Gene Munster for Chairman? Here's the logic: He understands the company and wants it to succeed long-term, but he has also been thoughtful and critical in ways that you would want a person in that position to be. He's also followed Apple from the days when it was virtually a mid cap company to a mega cap now -- the trajectory Tesla would like to follow. Overall, he would be a steward for the shareholders, which is what you want a Chairman to be.

Nah we need someone who knows the industry, was in high positions in the industry and shines with her or his elaborate and balanced analysis of complex situations and has a lot of experience ... in other words, we need Bob Lutz

 

[ValueAnalyst]

Model 3 gross margin in Q2 was already a few percent positive.

$6k QoQ ASP jump = 10% increase - incremental cost for the front motor = ~ 6-7% margin increase due to ASP

It's already at 10% based on ASP jump and Q2 observation.

Effect of volume: $62k ASP - approx. $40k marginal cost per unit = $20k+ contribution profit per unit

$20k x 37k more units delivered = ~ $750M contribution profit...

... divided by $3.5B Model 3 revenue = ~ 20% margin increase due to volume

Subtract a few percent for some incremental fixed cost per unit, and add a few percent for lower material cost per unit with higher volume.

Management's 15% Model 3 margin guidance for Q3 could prove conservative.

 

[ggr]

Gene Munster wouldn't be independent because his fund is invested in TSLA.

Simply incorrect. Investment alone does not affect independence.

 

[Rarity]

Simply incorrect. Investment alone does not affect independence.

Can you give an official definition of "independent director?"

 

[shootformoon]

Gene Munster wouldn't be independent because his fund is invested in TSLA.

What is the definition of Independent? independent of Elon or TSLA? If she/he has no interests in TSLA, how do shareholders trust him with their best interests?

 

[oneday]

Can you give an official definition of "independent director?"

What is the definition of Independent? independent of Elon or TSLA? If she/he has no interests in TSLA, how do shareholders trust him with their best interests?

LMGTFY

 

[ChrisA]

Gene Munster wouldn't be independent because his fund is invested in TSLA.

The role of a chairman is to represent shareholders. There is no conflict if the chairman is an owner. Independence is sought from management.