EVNow
Well-Known Member
It just means - Musk is trying to scare the employees to cut costs. I don't know why he is such a drama queen.
Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable
- Thread starter AudubonB
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anthonyj
Stonks
Musk doesn’t fit with public market. He doesn’t help shareholders with statements like this. And the market doesn’t deserve him. He is too smart and unique of a CEO. It just doesn’t fit... wish he could take it private and come back in 10 years as a public company
Yeah. I think maybe one of the reasons Amazon didn't have so many enemies is bezos kept his mouth shut. People didn't know he's after all the retailers, now even shipping companies.
JusRelax
Member
“This is a lot of money, but actually only gives us about 10 months at the Q1 burn rate to achieve breakeven!”
Anyone who believes that the burn rate will stay the same as the Q1 burn rate for the next 10 months, raise your hand.
Hello??? Anyone?
Didn't think so.
Anyone who believes that the burn rate will stay the same as the Q1 burn rate for the next 10 months, raise your hand.
Hello??? Anyone?
Didn't think so.
dqd88
Member
I think a lot of shorts still believe that after the tax credit phase out that demand will plummet. So after that all passes it will eliminate another bear thesis. I think 2020 is the year that TSLA takes off into another range, say $400-$550. (so accumulate many shares this year)
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No. All shares, tendered or not tendered, get converted to TSLA shares (at the .0193 ratio). Leftovers which are less than one share get cashed out.
This is not a sensible way to use Autopilot!
I can explain this.
(1) If you start your neural network with random or default connection weights, then train it, it ends up with some essentially unused space; then you can "prune" it to remove the junk sections. This has been known for a while.
(2) If you do this and then want to restart your neural network on a similar problem (with an all new dataset and all new training), you can start with a "pruned" network already, and the way to do this is explained in the MIT papers. It DOES have to be a sufficiently similar problem for the "pre-pruning" to work right; if it's a wildly different problem, you'll have to start fresh with a large, random network.
I think you’re reading a bit too much into what he said. Cash burn in Q1 was ~$700mm. $2.2bn at the end of Q1 / $700mm/quarter * 3 months/quarter = ~10 months.
He was just putting into perspective that if things kept going exactly like Q1, the $2.2bn would be gone in 10 months. It’s not any kind of new information.
I wish I had dry powder but I'm now actually over my "don't buy any more" concentration percentage in TSLA (which is 50%, in case you were wondering). Managed to pick some up via MXWL and some directly, in the $230s, so I'm happy with that.
It's not all nonsense, but the majority is distorted, taken out of context or exaggerated to serve their purpose (which is to see Tesla fail and /or prevent the world's transition to clean energy).
It's annoying to have to correct FUD from Elon himself though. He has always liked the narrative that Tesla is on the edge and only he can save them. For some reason he thinks he needs this as an excuse to explain his stress and mistakes, and to justify staff cuts and cost saving (in reality the only excuse he needs is that he is only human and cost efficiency is just good business). I think this is part of the reason he decided not to raise capital last year - with a lower cash balance he thought it was easier to get staff to accept job cuts and heavy work load - I presume he thinks staff would get more upset and think the actions more greedy if Tesla had a $5-10bn higher cash balance.
In this email specifically, Elon deliberately understates current cash balance from $4.6bn (post raise) down to $2.2bn and then ignores $1bn of available credit lines. He also ignores that they can raise $3-5bn within 24 hours whenever they want with insignificant dilution. He also equates net loss to cash burn, when cash burn is actually far lower as many expenses are always non cash (in Q1 free cash flow was actually positive before one off working capital movements). He also suggests end of quarter cash balance is key to when a company runs out of money (in fact it is intra-quarter minimum cash balance that matters). He also ignores that key to improving from Q1 numbers is increased production and deliveries - cost cuts can only play a minor role.
Elon has always presented data and communicated in a way to serve his purpose. I am confident he always does this in a way he thinks serves the best interests of Tesla and transitioning the world to clean energy. I am also sure his often poor communication skills and sometimes lacking social awareness mean he is not always right about this. Either way, it means you have to be skeptical with what Elon says and use your own judgement to determine his current motives (as should always be the case when you consider any comment from any management team).
Because he lacks maturity in some areas. I know this first hand and this is one thing that keeps coming back to bite him. He needs to grow up a bit and take some PR/communication classes which would help the stock significantly in both the short and long term. That's my PC version of the reality. He also needs to hire a competent person in CS, it's still a pathetic joke.
A ship arrived.
Cherry Wine
Supporting Member
No I just like making some money when the stock falls in the short term as a consolation prize.
Krugerrand
Is Cat
The e-mail wasn’t for ‘us’ or the media. It was for employees. Clearly nobody outside of Amazon cared what Jeff Who had to say to his employees.
Elon doesn’t have to and shouldn’t keep his mouth shut. He should convey whatever message he deems necessary to his employees, whenever and however he pleases.
UncaNed
Supporting Member
Perhaps...
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Not much choice other than discounting for "last year's model", when there have been major changes.
Tesla will have to keep doing this kind of clearance of obsolete inventory on a regular basis, as they make major product changes.
But the quarterly rush thing has to end.
Correction: All shares will be swapped for shares. The only cash payments will be for *fractional shares* -- so basically, take the number of MXWL stockholders and multiply by the price of 1/2 share of TSLA for the "leftovers". I have no idea how many distinct stockholders MXWL had, however.
Huh, Reuters has now misquoted him as saying that the $2.7bn additional money from the capital raise(not actually mentioned at all, so far as I can tell) only gave them 10 months.
Not sure Elon should really bother watching what he says when major news outlets will just make stuff up anyway.
Not sure Elon should really bother watching what he says when major news outlets will just make stuff up anyway.
Prunesquallor
His cardinal virtue? An undamaged brain.
And when Q2 comes in with a much smaller loss, that 10 months will recede way far into the future in peoples' minds.
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