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

[Mike Smith]

CNBC is reporting that Elon went on an 'expletive-laced' rant. CNBC is an honorable and trustworthy outfit so I assume he must have sworn what, 20-30 times?

 

[Chunky Jr.]

From what I understand, Shanghai factory is laid out very efficiently, but Fremont is kind of a mess. They obviously make it work, but I also wonder if they would be better off in the long run making more efficient factories that could lower the cost and increase the rate of production

 

[MTL_HABS1909]

yeahhhhh probably not a lot.

Poll: More than 70 percent of Americans support coronavirus stay-at-home orders

And unemployment is at around 30%. Easy to support something when money is still coming in....

 

[dl003]

please stop this. he's been an anti vaxxer on c19 from the start. he's repeatedly downplayed it, he thinks the death tolls are fake, he thinks doctors and hospitals are basically listing patients as death from c19 to get more money, or putting them on vents to get more money. its absolutely insane. he's just straight off on this.

Neither you nor I have the evidence that corruption does or does not occur during this crisis. He's simply pointing out that there is a conflict of interest and potential for abuse. Personally I'm of the opinion that governments are extremely ineffective so naturally I keep an open mind toward what he says and conclude that there must be a better, more scientific way to deal with this disease than what governments came up with.

 

[printf42]

It's a sideshow that keeps Tesla in the news without having to pay the media for advertising.

Completely agree this will be another marketing genius move in the hindsight.

This is how the water cooler talks goes tomorrow:
A: “Did you hear this Elon guy calling the stay-at-home order facist? He’s so desperate to reopen his factory.”
B: “But why?”
A: “Yes, Y”
B: “Heard that car is pretty nice, we have a 3 row one on order...”


Oh, I forgot we don’t have water cooler chats anymore, anyways we have Slack channel for that.

 

[Artful Dodger]

There's little room to go up in the short term

Upper-BB was at $881.35 at 14:15 hrs EDT; plenty of room for the SP to climb. Even After-hrs...

... BUT the Upper-BB will be higher at the Open tomorrow, of course.

CH33RS!

 

[LJS22]

CNBC is reporting that Elon went on an 'expletive-laced' rant. CNBC is an honorable and trustworthy outfit so I assume he must have sworn what, 20-30 times?

He’s on Twitter rallying America!
Elon Musk on Twitter

 

[gtrplyr1]

Regardless of anyone's opinion ... Elon is a freaking head of Tesla, maybe he's not the CEO but we all know he is. It absolutely served no one's interest for Elon to lose his sugar over the subject .... instead:

"We are all looking for ways to get back to work as soon as possible, it's in everyone's best interest we find a way to do it and do it safely. We are more than willing to work with the state and find a way to make it happen .... even in a limited basis ... but it's important that we do" Period ... end. ARGHHHH .....

Then again .. it's Elon, for better or worse ....

Cheers to the longs ....

 

[Singuy]

If anything, this is probably elons chess 4d way of selling cybertrucks to trumpers

 

[MC3OZ]

Tesla shouldn’t sink another nickel into infrastructure in the Bay Area. Then they need a plan to move manufacturing out of that old NUMI building into a brand new Giga in a more advantageous location.

Too much is being made of Elon's comments about the lock down, they are only a minor part of a much bigger picture, the rest of the call and earnings report was positive.

I don't entirely agree or disagree with his comments, but I do think he has gone slightly too far, only because he has been general, rather than specific. There is a strong case for reopening Fremont, no case at all for a general relaxing of restrictions...

I think the current Bay area set up captures any talent in the area that Tesla wants to tap, Fremont is maxed out and I think getting close to the point when investment in that factory slows down.

New factories and a diversity of locations has many advantages, even before COVID-19, with COVID-19 that is more apparent..

Difficulties in reopening Fremont will effect Q2 results Tesla can adopt a number of strategies to handle that:-

• Try to do more with Tesla Energy - Roof and Battery Storage
• Accelerate ramp of Shanghai - already going at Plaid speed.
• Reduce inventory build up - probably don't ship cars to Europe (maximise Model Y production)
• Cut costs - furlough more production and delivery staff.
• Reduce Capex - semi project already delayed.
• Recognise EV credit and FSD revenue where possible.

Overall the big picture in general, and in particular automotive margins are looking great.

A key consideration is when Fremont reopens.....

Elon is just being Elon and sometimes he doesn't do things the easy way, moving messages from being specifically about Fremont, to a more general commentary, will make it harder, not easier to open.

At the same time I think country officials need to be accountable for their actions, the lock down in general and keeping Fremont closed specifically. IMO the lock down in general can be right, but keeping Fremont closed could be wrong.

All I'm saying is treat every decision in a case-by-case basis considering all of the available evidence.

I don't expect to be talking about the lock down and Fremont reopening in 5 years time, it will be ancient history and forgotten by all.
I do expect to be talking about Tesla having a number of Gigafactories in different locations and how smart this diversity of locations and local production is.

 

[Stretch2727]

Tesla shouldn’t sink another nickel into infrastructure in the Bay Area. Then they need a plan to move manufacturing out of that old NUMI building into a brand new Giga in a more advantageous location.

Elon should do the "move from CA capital raise" tomorrow.

I bought into the argument of not overwhelming the hospitals and totally agreed with the lockdowns. We have accomplished that.

Now, all I hear is talk and no action from the coastal governments. They have shifted from worrying about overwhelming hospitals to making life a minimal/no risk endeavor for Covid-19. I don't buy into this argument. We need to move to a smart plan to reopen in weeks not months.

Totally understand Elon's frustration.

 

[UCF3]

From what I understand, Shanghai factory is laid out very efficiently, but Fremont is kind of a mess. They obviously make it work, but I also wonder if they would be better off in the long run making more efficient factories that could lower the cost and increase the rate of production

I doubt Elon wants to retrofit a decades old factory for the alien dreadnaught. Better to build giga Texas with the alien dreadnaught in mind

 

[woodisgood]

Many people do not recognize the fact that China closed down Shanghai for only about ten days, and Tesla has on-the-ground experience working in a country in a similar state. Working with a national administration that was making every effort to get the factory back in production.

Difference is that as much reticence as there is to believe China, they worked very effectively to control the virus. It worked. There are many videos available by long-time Westerner residents there. The US and Britain are both squandering the warnings they could have acted on. What is Musk supposed to think? 'Sure guys, take as long as you want to come to grips with what your (hated) global competition dealt with decisively and effectively and even warned you about'?

Musk is very angry about this, and he has a right to be. China is dismissed as a dictatorship. Whatever you call them, compare the results.

A pandemic requires a nimble response from the government.
Dictatorships can be fairly nimble, especially when compared to the inefficiencies of a large democracy.
The best situation is a benevolent and most-intelligent dictator, if such a person could exist.
It could be argued that's in large part what makes Tesla as nimble as it is.

 

[Sanny]

And unemployment is at around 30%. Easy to support something when money is still coming in....

Even more so if the money keeps coming in only if you behave. Hello, social media influencers, msm talking heads, politicians, etc.

 

[Krugerrand]

am I the only one laughing...….

edit: and no, I don't agree w/ him going off right now.. and yes, I lose monies when he does it...

No. I laughed through the whole soliloquy knowing that so many here would be losing their minds and that I’d be able to read it later on.

And...people did not disappoint. Just once I’d be happy to be proven wrong and for people to just take it all in stride.

Meh. Maybe next time.

 

[Curt Renz]

Bloomberg TV - 3 hours ago:

 

[ZachF]

Yeah the governor released the guidelines and even wrote that auto manufacturering is essential as per federal guidelines and no one cares. Bunch of shorts claimed Tesla cars are not essential because it's a luxury item and flooded Twitter accounts of those in charge.

Must be fraustrating to have everyone tells you that your essential business is not essential, that tesla energy and Auto are just some fancy toys for wealthy people. You are trying to fix climate change while all these people with power tells you to go f yourself and your non essential nonsense.

I think he should keep his opinions to himself but I can't fault him for having such feelings. I know I would be pissed.

There can be problems with having bureaucrats decide what is essential and non-essential, because sometimes something can seem non essential, but be part of a supply chain of something that is very essential upstream. This is magnified by many firms running JIT systems.

 

[UnknownSoldier]

Part of me honestly thinks Elon is hoping the breakthrough numbers for TSLA will cover for his personal rant.

It's just that the media doesn't work like that and Elon is perpetually clueless about it. Jeff Bezos doesn't even show up for AMZN earnings calls for very good reasons.

The media should always be treated like the enemy. As long as Elon never figures this out, we'll still have things like this. And it is not good for employees, shareholders, or the people of planet Earth when Elon plays straight into the hands of the media with stupid things like this.

I wish someone, anyone, Peter Thiel, Larry Ellison, Mark Cuban, Larry Page, Bill Gates, Jeff Bezos, somebody would pull Elon aside and tell him how it is. You are not helping yourself, your company, or humanity by doing stuff like calling random people pedophiles and ranting about fascism. Stop doing it. I don't care if you're right or not. No one cares. You are your own worst enemy here, and the media is always salivating for a chance to bury you.

 

[phantasms]

If anything, this is probably elons chess 4d way of selling cybertrucks to trumpers

This the only explanation of the recent events that makes me happy, so I’ll accept it as fact.

 

[SOULPEDL]

To me it sounded like more of a 'lease' option? It sounded like it'd be paid off within a few years rather than a long term paid subscription?

Did anyone else get this impression, or just me?

I thought it was subscription, but it's interesting how he emphasised that it's more valuable to own now. I think these will be golden tickets and only so many grandfathered into full FSD ownership to eternity.