Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable

[Pezpunk]

No, but like actually. What is the plan with this much cash on hand? There's only so many factories and R&D to spend on

Elon has said Tesla is like a cluster of startups. Beyond selling cars, it's already crept into AI, insurance, and battery manufacturing. We know Ridesharing, mineral mining, and autonomous robotics are in its sights. What other industries come after those horizons?

 

[2daMoon]

No, but like actually. What is the plan with this much cash on hand? There's only so many factories and R&D to spend on

I heard that they are reaching out to Slartibartfast to arrange construction of a custom planet.

 

[gtrplyr1]

Well we did our part ... got a Model Y 6 weeks ago and picked up a matching Model 3 yesterday!

These are unreal numbers ..... market action sucks because the market sucks right now but eventually it will flip ...

Future is very bright for Tesla ..... and getting brighter every day.

Cheers to the longs!!!

 

[GOVA]

Those who waited for MY from TX must feel it. I am glad I didn't

 

[MP3Mike]

No, but like actually. What is the plan with this much cash on hand? There's only so many factories and R&D to spend on

I suspect part of it is that Elon doesn't want Tesla to be beholden to anybody for operating money. That gives him free will to fight with the SEC and the banks can't hold a gun to his head and say "we will cut off your funding if you don't settle ASAP."

And really, why pay interest on debt when you have "extra" cash on hand. But they should have no problems funding multiple factory builds/expansions at once now.

 

[Cobbler]

Today, this chance has increased 10x

 

[kabin]

Yeah I saw that, they have almost zero debt at all now. I wonder when that credit upgrade is coming?

Book value is over 35 so there are significant liabilities/payables.

 

[mspohr]

I suspect part of it is that Elon doesn't want Tesla to be beholden to anybody for operating money. That gives him free will to fight with the SEC and the banks can't hold a gun to his head and say "we will cut off your funding if you don't settle ASAP."

And really, why pay interest on debt when you have "extra" cash on hand. But they should have no problems funding multiple factory builds/expansions at once now.

Rating agencies will probably complain that Tesla doesn't have enough debt.

 

[StealthP3D]

Gordon Johnson and crew will harp on the Regulatory Credits but it's still a beat without them.
The good news is that the higher Leasing Revenue & Profits appear to be a new trend as cars are coming off lease and Tesla recognizes gains on the sales.

Regulatory credits? You mean that pesky source of revenue provided by Tesla's so-called competitors that keeps declining and would wither away to nothing by 2021?

He could just as well harp on the fact that the competition still isn't coming! Me thinks the two are related!

 

[Prunesquallor]

The $679m was surprising to me; I hope Zach can provide some information during the call.
It would be great if we could see a similar number in Q2 to offset the Shanghai shutdown impact.

Also, remember the EU emissions limits continue to ratchet down every year. The Supercredits (extra credits factor for hybrids, essentially) are down to 1.33. They also transitioned from NEDC to WLTP for emissions calculations (not sure of the net effect of this).

 

[ZsoZso]

I missed mainly on the Regulatory Credits and strong Lease Revenues:

View attachment 795849

Admit it, you were listening too much to GoJo the

, who said it too many times that regulatory credits are one time item and going away next Q...

 

[M|S|M MYP]

TSLA paid down 2.1B in debt in last quarter.

Wall St. hasn't yet thought about what financials will look like when they are no longer aggressively paying down debt.

Unreal beat all around. If macros would cooperate, stock would be > $1500.

Bearish....should be over $2k by now

 

[larmor]

While this is certainly a beat, I'm curious to see how the market actually reacts. As in tomorrow, when the SP drops because everyone thought a beat should have taken it up. We've all been down this road before. I'm happy they beat as a miss could have resulted in a precipitous Netflix drop, but I'm not convinced the Market is going to respond the way most think it should.

The street will treat the beat as a miss, because tesla missed expectations... Just wait for the 'headlines'. Also, it is not bad business model to sell a widget for a profit and also get secondary profit from regulatory credits. In fact, a company just selling widgets in exchange for regulatory credits could alone be profitable.

 

[henchman24]

Rating agencies will probably complain that Tesla doesn't have enough debt.

You jest, but they probably will. Just like if you have zero debt, your credit tends to suffer.

 

[TheTalkingMule]

Financial results are amazing, even better than most of the uber-bull estimates ($2.86/share GAAP, 3.22 non-GAAP profit).
Now the question is: can Elon rattle the cages and scare the investors on the call enough despite the results to cause the SP to tank tomorrow ?

That's the beautiful thing, it's not 2016 anymore. TSLA's valuation isn't derived from theoretical projections of a future reality. Margins are 33%, growth is 75-100%, and two new gigafactories just opened. There's no way to spin all this anymore.

Taking the SP at close today, our forward PE is now 85. And that's with paying debt down from $2B to zero. Actual PE at this share price is now what......140? That's laughable.

Wall Street simply can't spin this kind of execution and earnings growth. There are enough savvy traders in the world to completely upend the TSLA options market if they tried to keep it at $1000. They're gonna be forced to get out of the way and let this thing ride up to a new completely irrational all-time high. That's the only way the options market can function, otherwise it'll be too easy.

Something like $1450-1650 makes sense.

With summer coming up it's easy enough to manipulate the SP on low volume, so my thought was that "they" would try to keep a lid on things til September. I don't think that's gonna be possible now if guidance is maintained.

 

[ZeApelido]

I wonder if Tesla is still Jim Chanos’s favorite short position?

https://twitter.com/x/status/1516882074480922624

 

[M|S|M MYP]

Just imagine if the Federal Tax Credit still applied to Tesla...oh wait...it has not in a while and they are still posting numbers like this. Shanghai shutdown will sting but for some reason i feel the ramp up will happen faster than people expect to offset that. Exciting times ahead for us HOLD'ers!

 

[Singuy]

Imagine being bearish on this company

View attachment 795850

Lol Tesla in their trolling fashion has their line be off the charts lol.

 

[mongo]

TSLA paid down 2.1B in debt in last quarter.

Wall St. hasn't yet thought about what financials will look like when they are no longer aggressively paying down debt.

Unreal beat all around. If macros would cooperate, stock would be > $1500.

Paying off debt hits cash flow, not EPS.
Eliminating interest from debt does improve EPS.

 

[M|S|M MYP]

This just in: