They are all margined and want papa Elon to send them a lifeline.This all seems fishy to me now. This - being the buyback. Open letters from WS tools, all of the articles promoting it. Maybe they want to set a trap of some sort.
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They are all margined and want papa Elon to send them a lifeline.This all seems fishy to me now. This - being the buyback. Open letters from WS tools, all of the articles promoting it. Maybe they want to set a trap of some sort.
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So..Lincoln dealers have to spend close to another $1M after spending millions in renovations for the right to sell EV's at razor thin margins? probably will not age well. Article is paywalled.
Ford says top Lincoln dealers face $900,000 bill to sell EVs
Lincoln stores that want to sell EVs will need to invest more than four times as much as Cadillac is asking its retailers to spend, mainly to cover the cost of installing chargers for public use and service needs.www.autonews.com
Article is paywalled.
Tesla had better beat earnings expectations. If something weird happened and it's a miss the punishment will be brutal. Seems very unlikely at least.
Imagine, all them pension funds and everyone that could not invest until the so called “investment grade” upgrade will have an amazing year next year when their genius investment at around $600bill will more than double if not triple…. Just imagine the game is rigged and they can do whatever they want. But that can’t possibly be real, impossible….Tesla had better beat earnings expectations. If something weird happened and it's a miss the punishment will be brutal. Seems very unlikely at least.
Oh yes, good catch. Thank-you. Edit done.Did you mean Giga Austin? Nevada isn't making 4680s, and if they were they would likely be from Panasonic with their manufacturing process.
True, but It wouldn't be Tesla's normal business practice to spread production like that. That also increases CapEx because they'd have to build drying overs somewhere else. Then logicstics cost for the rolls. Normally, Tesla would just work to fix the issue in place, and continue with the plan. That's what we heard from Drew Baglino since the Q2 Conf. Call. I have no doubt that's what they're doing.Coated electrodes can be shipped to the cell plant.
The cathode plant will mix the aggregate only. The machines to create the cathode roll are already part of the production process in the battery cell lines.Just like Texas has a separate cathode plant (or is that only materials, not finished rolls?).
This all seems fishy to me now. This - being the buyback. Open letters from WS tools, all of the articles promoting it. Maybe they want to set a trap of some sort.
This is my position on the matter.To be clear, I think most people here who are currently advocating against a large buyback NOW - are not doing so because they think buybacks are not a good idea eventually - only that it is best to wait until the cash pile is bigger and the multiple current large uncertainties have somewhat receded. Its possible the more appropriate time is merely 3-6 months away to unleash the buyback floodgates.
That future and order backlog is useful if only if Tesla can actually make cars and Megapacks to fulfill the orders, which is subject to numerous severe risks while we have only two factories that are located in areas with unusual risk of natural disasters and with presiding governments who have shown willingness to shut down the factories and supply chain because they feel like it. There are many exogenous factors outside Tesla's control which are extensively documented in the 10-K.I agree that its worth Tesla having some cash as insurance against black swan events. However, its really a matter of degree. Things get way too polarized on this board, with people being in camps 'for' or 'against' certain actions by the company.
I am FOR a share buyback in very specific circumstances:
- The company has a very very large cash stockpile
- Inflation is extremely high, eroding cash value
- The share price is unusually low, and thus represents good value
- The future continues, via order backlog, to look very very good
These are very unusual and unlikely circumstances, but all 4 apply right now. Therefore I support a limited buyback, with some portion of the cash holdings. I don't think any rational person wants Tesla to do buybacks constantly regardless of circumstance. Its all a matter of degree. Gary is suggesting $10billion over multiple years. That sounds reasonable, if conditions persist.
I have been concerned about these unlikely risks for years. I have only been publishing my thoughts on Tesla for one year and I've had a lot of other more important topics to write about, but this topic is hot right now and I would like to influence the outcome. The short sellers and current stock price have nothing to do with this. I am about 140% all-in on TSLA including a substantial amount out-of-the-money call options. I do not know how I could get much more bullish and I do not believe any of this calamity is especially likely. I still have a smile on my face as I'm writing this. I'm still projecting a base case of $16/share earnings next year. However, I want to have a rational investment thesis and that means considering risk factors and estimating relevant probabilities. Right now, the business still has some vulnerability which cash protects against, and I wish they had more like $40B right now instead of $18B.Haha, yes, back in January. But you're suddenly worried about 'risks' on the day Tesla sets a 52-wk Low? Twitter much?
Advice: don't overthink things. Shortzes are making book by emphasizing the negatives, and amplifying the dips. That's how they steal shares from weak longs. Don't do their work for them (or let them live rent-free in your head).
This is BAU for TSLA. That's how the sausage is made.
HODL.
If there is a shortfall in the second half of this winter the stated policy is that non-essential commercial & industrial will be rationed first (so as to protect critical industry processes that cannot be switched off without major damage; and critical emergency/health/etc facilities; and a sufficiency for domestic consumers), and in all likelihood that rationing would include items such as Tesla cell production.
That last paragraph is a real piece of work.