It's two sites. Basically like you build data centers for redundancy and load balancing purposes. It's a risk diversification move.
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It's two sites. Basically like you build data centers for redundancy and load balancing purposes. It's a risk diversification move.
Mario Kadastik
Active Member
I think they break ground on two, but plan to build one. Then once it's almost up they'll start building another one and another one and ... That's what they've said multiple times as they need to keep the factories coming as they expand the car production capacity... So it's been known that this is just the first gigafactory, not THE gigafactory.
I think I heard that they will actually break ground on 2 sites, the first one in about a month (3 months TM time?)
FredTMC
Model S VIN #4925
marvinat0rz
Member
This earnings call makes me super optimistic long term. Both demand wise, technology wise and with regards to the Gigafactory and stationary storage angle.
Unfortunately, I need cash on hand for the next six months since I am in the middle of a big career decision and will probably have a few months of no income. Painful to look at today's attractive price and not be able to make a considerable common stock purchase. 187 looks very tasty. Still with the short-term caveat that we are tightly coupled to the momentum stocks on the NASDAQ, so irrational/herd behavior will still be a factor in the months ahead.
Look on it from a good side, a contraction in momentum stocks (and hence in Tesla) is a sign of health in the overall markets.
Unfortunately, I need cash on hand for the next six months since I am in the middle of a big career decision and will probably have a few months of no income. Painful to look at today's attractive price and not be able to make a considerable common stock purchase. 187 looks very tasty. Still with the short-term caveat that we are tightly coupled to the momentum stocks on the NASDAQ, so irrational/herd behavior will still be a factor in the months ahead.
Look on it from a good side, a contraction in momentum stocks (and hence in Tesla) is a sign of health in the overall markets.
Johan
Ex got M3 in the divorce, waiting for EU Model Y!
Also he never got to answer about new capital being required to build factories in China and EU vs. funding it with just cash flow. IMO there will be future either offerings or bond sales.
FredTMC
Model S VIN #4925
I liked the call.
1). Fully addressed that demand in NA is steady increasing. Deliveries in country don't equate to demand in country.
2). Great color on Gigafactory.
1). Fully addressed that demand in NA is steady increasing. Deliveries in country don't equate to demand in country.
2). Great color on Gigafactory.
chickensevil
Active Member
Lanthrop is CNC stuff. Not really a big deal. Just a place for them to focus in on that aspect without eating up floor space in Fremont (since they will soon be needing all that room as they are already over 50% capacity).
That is great news because it means Tesla recognizes that there are potential buyers in cities who don't have a place to charge (live in apartments or condos and can't get an outlet installed in their parking space or only have street parking) and Tesla is going to address that with SCs in cities. He specifically mentioned not just cities in China (which is what the callers question was about) but also London and San Francisco!
That is a smart move by Tesla.
chickensevil
Active Member
So I sold out all my common stock back at 245 in order to buy my car... I might just have to take whatever cash on hand I can scrounge up just to throw at Tesla again, because 188 seems too good to be true. However, based on the cash flow guidance and their profit margins they have listed I actually expect the stock to continue to drop for a little while. I see this as a repeat of Q3. I hope I am wrong, I really do, but I wouldn't at all be surprised to see it stay in the 180s holding even with the 200 day average.
It was bring your junior analyst kids to work day today with that variable costs question. That kid wanted Elon Musk to do his homework for him on an earnings call. Sad.
Anyway, I got what I wanted from an information perspective from this call:
1) Firm confirmation that Panasonic is in it to win it with Tesla Motors, letter of intent signed and capacity ramping up on schedule. MASSIVE de-risking there.
2) DEMAND IS RISING EVERYWHERE ON THE PLANET
3) Breaking ground NEXT MONTH on two possible GigaFactory locations. Folks, in the construction industry it normally takes YEARS to properly site, permit, survey and lobby for small projects, let alone huge factories, before construction begins. This is execution way better than I expected.
4) Firing up second production line in July to meet global demand and optimize production
5) Model X is being perfected and PRODUCTION deliveries could commence in April 2015. That is very very fast.
6) Average Selling Prices are up
7) The Chinese love Tesla and demand is very high
8) Elon expects to EXCEED 30% battery cost savings / efficiencies on time, ready for global domination by the Model E/GenIII car.
I don't think we will stay in 180's for long, and I see a lot of de-risking in this execution on schedule for Tesla Motors. The bears will find new holes to poke, but a lot of them have been closed today.
Anyway, I got what I wanted from an information perspective from this call:
1) Firm confirmation that Panasonic is in it to win it with Tesla Motors, letter of intent signed and capacity ramping up on schedule. MASSIVE de-risking there.
2) DEMAND IS RISING EVERYWHERE ON THE PLANET
3) Breaking ground NEXT MONTH on two possible GigaFactory locations. Folks, in the construction industry it normally takes YEARS to properly site, permit, survey and lobby for small projects, let alone huge factories, before construction begins. This is execution way better than I expected.
4) Firing up second production line in July to meet global demand and optimize production
5) Model X is being perfected and PRODUCTION deliveries could commence in April 2015. That is very very fast.
6) Average Selling Prices are up
7) The Chinese love Tesla and demand is very high
8) Elon expects to EXCEED 30% battery cost savings / efficiencies on time, ready for global domination by the Model E/GenIII car.
I don't think we will stay in 180's for long, and I see a lot of de-risking in this execution on schedule for Tesla Motors. The bears will find new holes to poke, but a lot of them have been closed today.
chickensevil
Active Member
This also means that based on their estimates for usage vs the cost to maintain them, they see this as self sustaining even IF people use them every day... They must be really getting a great deal here on this since 2,000 per car doesn't seem like a lot, but I guess it is enough to feel confident that they can do this without losing money.
hockeythug
Active Member
chickensevil
Active Member
Well not on this list, but Callinex Mines Inc just retweeted my GF and cost reduction tweet.Is that an admission of being one of the mines that TSLA is in discussions with
Just wanted to bring this back up so it wasn't glossed over. You are not the only comment they retweeted regarding the GF. Either A: They are just trying to pump their stock (isn't that dangerous and can't they get in trouble???) or B: this is basically an admission that they are part of this already (or at the very least they are one of the companies being talked to).
I say it may be worth it to throw some money at this company, or at the very least give this some more in-depth research.
To that end, the stock ticket is CNX.CA and looks like they are current .42 per share... even if this is just a false flag, one could potentially ride this pump and dump from the start... I have been burned too many times by penny stocks, so I wouldn't like make this trade (or if I did would not stake much money at all in this) but to those who like this sort of thing... it might be worth it.
Preface: I know nothing about business or engineering.
I see Tesla is doing everything right. Great product. Might change the world. So far, everything is progressing in an amazing way. They have to create all the things that enable the car to exist, the entire ecosystem - and they are. The chargers, the gigafactory. They're expanding to Europe and China.
It takes time to build stuff. You can't snap your fingers and make cars out of thin air. They're doing an astounding job so far.
They're not losing money so fast they have to close down, as in, nice dream, but it didn't work out.
In fact, they're making a bit of profit.
I wouldn't care if they didn't make a profit at this stage since they're new, and we're talking about a long term thing which will be HUGE. World changing. Takes time to build.
That's what I see as a (hopefully) reasonbley intelligent person who knows nada about business.
OK. Can someone explain to me why the stocks dropped?
It can't be that everyone else is crazy or stupid. I know there are lots of super smart people in finance.
It's possible that there are malicious forces at work (oil companies et al.).
It's possible that all these biz people are trapped in certain ways of thinking. If target X [fancy biz speak] was not met then FAIL. Obtuseness, in other words. Lack of imagination.
But I'd like to know if there are intelligent, not crazy, not malicious reason for what seems to me inexplicable.
I see Tesla is doing everything right. Great product. Might change the world. So far, everything is progressing in an amazing way. They have to create all the things that enable the car to exist, the entire ecosystem - and they are. The chargers, the gigafactory. They're expanding to Europe and China.
It takes time to build stuff. You can't snap your fingers and make cars out of thin air. They're doing an astounding job so far.
They're not losing money so fast they have to close down, as in, nice dream, but it didn't work out.
In fact, they're making a bit of profit.
I wouldn't care if they didn't make a profit at this stage since they're new, and we're talking about a long term thing which will be HUGE. World changing. Takes time to build.
That's what I see as a (hopefully) reasonbley intelligent person who knows nada about business.
OK. Can someone explain to me why the stocks dropped?
It can't be that everyone else is crazy or stupid. I know there are lots of super smart people in finance.
It's possible that there are malicious forces at work (oil companies et al.).
It's possible that all these biz people are trapped in certain ways of thinking. If target X [fancy biz speak] was not met then FAIL. Obtuseness, in other words. Lack of imagination.
But I'd like to know if there are intelligent, not crazy, not malicious reason for what seems to me inexplicable.
So after hearing this ER, and learning about the 2 week shutdown and new, improved and higher capacity production line going in, Lathorpe seems like a staging area for this... and later for the GF(s).
chickensevil
Active Member
Right that is what I was getting at... A place for them to figure out what tooling they would need and how they would need to program any new robots going onto the line so they don't have to eat up floor space in Fremont for this type of R&D. They can play around freely with the tooling options and such without impacting anything.
Edit: They could also extend this out for the start of GEN3 so they have some idea for how to build out that line when they get there.
anticitizen13.7
Not posting at TMC after 9/17/2018
My suspicion is that a lot of the trading is not done by humans, but by massive farms of computers ("bots") that are programmed to trade on behalf of large financial institutions. The algorithms likely scan news media and react accordingly. Most of what I'm seeing in my news feed headlines is panicked trash, and that's what the bots are feeding on: garbage in, garbage out...
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