Apologies for the SeekingAlpha link:
Tesla (TSLA) issued $1.8 billion of 5.3% bonds in August 2017, which are due in August 2025. Read more on Tesla's plans to redeem these bonds.
The experience you just relayed, is certainly not a clear cut case of being inaccurate. At the time, the Model 3 did not have heated rear seats turned on. That is the kind of detail level that not every salesperson is going to know, at least at that point when things were in transition. The salesperson was not lying to you. And yes, people like us who are in TMC know more about the details of Tesla products then some of the front line salespeople. That is to be expected. Compared to my dealings with ICE car sales, where information presented was often wrong for the salespersons gain.FWIW many folks interact with sales advisors, even at Tesla, pre-sale.
Test drives for example.
100% of my experiences with them have included them providing factually inaccurate info.... (in some cases the only reason I knew it was inaccurate was having read the correct info at TMC too.... like at the time they told me Model 3 didn't come with heated rear seats at all and would come on a later model... when I knew from here they all had it and it just wasn't enabled in SW yet).
Just like 100% of my experiences with sales associates at every other brand of car I've dealt with including other "luxury" brands like Lexus, Mercedes, etc. where they generally knew less about the features and optioning of the things they were trying to sell than I did.
front-line car sales persons are notoriously ill informed on their own products- across all brands.
There are MANY things Tesla does far better than other car companies... training random sales staff isn't among them.
Big “iTunes for Windows” vibes. That was the gateway into the Apple universe for millions of unwashed Windows plebes and it was huge for Apple. Although Apple purists hated the idea at the time.Tesla SuperCharger and Tesla SuperCharger app will the first real advertising Tesla does and they will get paid for it.
Also WHO makes money on “fuel” is very different between gasoline and EV….IIRC both the oil industry and auto manufacturing are about $2-3t each.
Electricity is alot cheaper than gas, so this wont be the case with EVs. 200,000 miles of gas costs ~$20,000 for the average 28mpg car. 200,000 miles of electricity is about $6,500 for a 4mi/Kwh EV.
The real problem was that my choice of beverage was tequila. Then I ran into tax accountant language, which caused me to have to start over and reread from the start. Then I’d get to the beverage suggestion part again and grab another tequila. Rinse and repeat. I was on my eighth tequila before 7am (and on an empty stomach) when I finally gave up and asked for pictures and hints.Oh, DO pay attention!
Actually, I fear we all need a good ocular scrub of Meguiar’s from all the glazed eyes….
(try unseeing THAT)
Also WHO makes money on “fuel” is very different between gasoline and EV….
The “gas station” model lives off 3% somehow (which is why many add a mini mart)
View attachment 686694
With the supercharger, Tesla can install solar and battery storage to possibly claim all the margin. It would be capital intensive for sure, but gives SC access to WAY more margin than the gas station ever had. As long as SC relies on grid for significant power, they will likely lose money IMO. Again, due to competition from people’s home charger, the EV “gas station” model likely NEVER have the equivalent “miles of fuel” sold, if Tesla combines SC battery storage and mini grid stabilization ie autobidder, it seems interesting.
and Tesla has enough data for their own cars to triangulate authentication but for third party?However, sniffing the data exchange during the Supercharger-to-car handshake, it has been noted that the car VIN is passed to the supercharger... it just didn't initially make use of it. That could be made use of as part of this plan...
Apologies for the SeekingAlpha link:
Thank you.Yes. If Tesla recognizes any portion of their deferred tax asset benefit this quarter it would partially or fully offset the bitcoin impairment.
Copying @st_lopes on this response as he has much more tax expertise than I do.
We have seen other companies in this situation take most of the benefit at one time and not spread over several quarters. But it can be taken over several quarters/years.
However, there is one factor that may be different for Telsa now than with the other companies in the past.
In 2018, the US tax law changed so that there is no expiration on using past losses to offset future tax income starting with the 2018 tax filing..
The table below is not 100% accurate but directionally Tesla's $2B deferred tax benefit can be outlined as follows:
View attachment 686561
Of the $2B in Deferred Tax Benefit, about $200m from 2018 and $133m in 2019 have no expiration.
So perhaps Tesla can take the position that $333m ($200m+$133m) will more likely than not be used in the future and book $333m to income in Q2.
Contrary to what TSLAQ claims, Tesla takes a conservative approach with their accounting so I am not counting on this. But it's possible.
The experience you just relayed, is certainly not a clear cut case of being inaccurate. At the time, the Model 3 did not have heated rear seats turned on.
This is also the same reason why a credit upgrade by Moody's is not particularly relevant anymore. Tesla doesn't need to issue significant amounts of debt like they were prior to and during the M3 ramp.In case there are others like me who don't really understand what impact redeeming the bonds early has...
This means Tesla will pay $1.8477 billion, or almost $48 million over the face amount to redeem these bonds. Of course, it is saving $95.4 million in interest per year over the next four years, so this redemption makes economic sense, particularly considering Tesla currently has significant cash on its balance sheet.
Or was part of the plan from the start.However, sniffing the data exchange during the Supercharger-to-car handshake, it has been noted that the car VIN is passed to the supercharger... it just didn't initially make use of it. That could be made use of as part of this plan...
They would have to use the current year benefit before they consume old years.Thank you.
Shouldn’t the company first use up the the tax benefit from years prior to 2018 which expire soon(when?) unlike 2018 and later losses which will be available much longer into the future?
I resemble that remark!They may not use the superchargers that much - Is there anyone daft enough to go on a road trip in something other than a Tesla anyway?
With the supercharger, Tesla can install solar and battery storage to possibly claim all the margin. It would be capital intensive for sure, but gives SC access to WAY more margin than the gas station ever had. As long as SC relies on grid for significant power, they will likely lose money IMO. Again, due to competition from people’s home charger, the EV “gas station” model likely NEVER have the equivalent “miles of fuel” sold vs the gasoline stations of today. If Tesla combines SC battery storage and mini grid stabilization ie autobidder, it seems interesting.
My experience includes buying more than 50 new vehicles in a dozen countries. I have never yet seen a car salesperson who knew as much about their vehicle as I did. Of course, those of us who post here are more obsessive than are typical car buyers. Still it surprised me to find a number of fairly exotic cars without basic knowledge. I have grown to expect ignorance so I am never disappointed.I actually asked to try and give him the benefit of the doubt.