Separate names with a comma.
Discussion in 'TSLA Investor Discussions' started by FredTMC, May 8, 2014.
Should Tesla management focus more on exceeding their quarterly guidance?
Some investors say yes.
Elon says hell, no. I don't care.
I am with Elon here.
Tesla needs to show that it is ok and even healthy to miss quidance every so often to keep the stock price under control. This keeps large unexpected drops from happening like todays and leaves investors with their shirts.
I feel like the poll gives option 1 a preference in the way it is worded. In my case it is more accurate to say no, because Tesla should focus on all aspects of the business. I mean exceeding quarterly guidance is easy. Just set the targets lower than you think you will achieve.
Tesla should simply keep doing what it's doing: execute on their plan to massively scale up production over the next few years. There is no reason whatsoever to focus on market games. Just continue to build the company up and the price will take care of itself.
No 4 sure.
Poll options are insufficient IMO, but I went with "no". Tesla should focus on doing what's best for Tesla and not worry about pumping the stock. Too often I see companies become slaves to the shareholders, often bending over backwards to do things that simply give the perception the shareholders want (even if it's not reality).
Don't become a slave to wall street Tesla. Do you.
Problem is, it doesn't actually matter at all. what matters is that they must exceed the analysts projections, not their own. This is a no-win situation, because if you set your guidance right on, and get it right, you may not meet what some analyst thought you would do (number they pulled out of thin air) But if you adjust your guidance downward so that you always exceed your own guidance, you might get away with it one or two quarters, but after that the analysts will notice that you always beat by a certain amount, and they'll expect at least that amount in future.
So in short, it doesn't matter how well you do compared to your own guidance, the only way to "win" is to do better than anyone expects, which is hard as you have to do exponentially better each quarter or you'll just be barely meeting expectations.
I voted no. Tesla should focus on the long game, which seems to be their strategy.
"Wall Street is in the business of making money between now and next Tuesday. We're in the business of building an organization, an institution that we hope will be here 50 years from now. Strategic planning is an important part of running any business and the more so for businesses that operating in multiple states and countries."
Jim Sinegal, CEO Costco
Funny, I was about to say exactly those words!
Focusing on quarterly results is the bane of many otherwise good companies. I want him looking at the long term. I just wish he'd let me invest in SpaceX.
Tesla mgmt needs to meet the guidance they offer--it shows they have a handle on their business. They should invest no effort in trying to hit the made-up numbers Wall Street "analysts" come up with--getting on that hamster wheel is a fool's errand.