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

[Artful Dodger]

Elon seems to have attracted another 100K followers on Twitter since the baby name was announced. Still waitng to hear a pronunciation (in English).

Joe Rogan podcast #1169 (w. Elon) now has 33.64 M views on Youtube. 340 K since last Friday.

Cheers!

 

[jbcarioca]

Well, isn't the real point to be made that Tesla inventory is truly gone when it's sold, whereas the legacy manufacturers have stuffed their production into Dealer's lots, which can't accept more production until the actual sale to consumer is made?

Yes!

 

[adiggs]

Might I suggest the person I responded to (or anyone else) supply a link or argument to their point?

"Why not" is usually the wrong question to ask when "why" hasn't been stated first.

The post you quoted in your response may not have been your intended post to respond to (that has happened before), but that post does have a link:

Young people are increasingly playing the stock market in a coronavirus-driven gold rush

This should only help TSLA

Admittedly, @UCF3 didn't elaborate on why he concluded what he concluded from the link, but there is a link there. So it could be that you're looking for elaboration on why he concludes from the article why this should help TSLA. In which case a question would advance the conversation, rather than a declaration that doesn't help us understand this dynamic.

 

[The Accountant]

All the others recognize sale at time of shipment to dealer. That is NOT cash basis at all, no connection. For Tesla, the finished goods inventory includes all costs of the finished product, while the component, including salaries and materials are charged to expense as incurred. You are incorrect that those expenses are deferred, they are recognized as incurred. All accounting is intended to match revenues and expenses, but the terms of recognition vary substantially, as do rules for depreciation, amortization and charging to Work in Progress or Finished Goods.
You need to review production accounting. We don't need the technicalities here, but if we did @The Accountant would be the appropriate source, not me. OTOH, I have had a pretty decent background in cost accounting for the auto manufacturing and distribution industry.

Except for Deferred Tax Accounting, Cost Accounting may be the most difficult topic on the CPA exam (IMHO).
@Big Dog is correct on the accounting. I have a post on Cost Accounting in the Moderator's Choice thread (page 3 - I'm not to savy to link to it) but I will copy/paste here a relevant section:
(Fairy Godfather: Moderators' Choice: Posts of Particular Merit.)

Inventory vs COGS: Cost at the factory are classified as Material, Labor and Overhead (some fixed, some variable) and they all get capitalized to Inventory as the car is being produced. So all these costs sit on the balance sheet as Inventory until the moment the car is sold (ownership transfers to customer) and then at that point the Inventory gets released to Cost of Goods Sold (COGS). This allows for the matching of Revenues with COGS at the moment of sale.

 

[Drax7]

I am glad he isn't playing with my millions.

Krugerrand is quite right TT Friday evening predicted TSLA going to 350 maybe even 175. Monday afternoon he predicted TSLA is going to 1400. Nether with any real explanation. So what is TT doing? Rolling a couple of 20 sided dice?

TT can change him mind whenever he pleases and without consulting Krugerrand.

 

[The Accountant]

Well, isn't the real point to be made that Tesla inventory is truly gone when it's sold, whereas the legacy manufacturers have stuffed their production into Dealer's lots, which can't accept more production until the actual sale to consumer is made?

Yes!

I agree - this is a huge point. The legacy automakers have sales that sit as inventory with the dealerships so there is a huge buffer of inventory (not theirs) that sits between them and the end consumer.

 

[Steve m]

TT can change him mind whenever he pleases and without consulting Krugerrand.

It is the lack of explanation for such a radical shift in position which makes TT7 an useless source. With or without Krugerrand or myself for that matter.

My rule of thumb is that if you are going to be useless at least be funny.

 

[ggr]

Not exactly Tesla related, but still a landmarkView attachment 539223

Another failed promise... the Falcon 5 on the screen still hasn't flown!

 

[Big Dog]

All the others recognize sale at time of shipment to dealer.

Correct.

That is NOT cash basis at all, no connection.

Correct.

For Tesla, the finished goods inventory includes all costs of the finished product, while the component, including salaries and materials are charged to expense as incurred. You are incorrect that those expenses are deferred, they are recognized as incurred.

Period costs, such as SG&A can be expensed as incurred. Production costs go into COGS.

All accounting is intended to match revenues and expenses, but the terms of recognition vary substantially, as do rules for depreciation, amortization and charging to Work in Progress or Finished Goods.

Yes, accounting can be a challenge, and there is room for professional interpretation, but the expense rules for GM are little different than they are for Tesla.

 

[Unpilot]

My rule of thumb is that if you are going to be useless at least be funny.

I try my best.

 

[EVMeister]

Regarding "the young" and Tesla investing. I can relate. I'm a Millennial, Tesla is the first and only single stock I've invested in. I do have some other investments, but the amount I have invested in Tesla vastly outweighs those. I've been in the fortunate position of being able to set some of my income aside for the sole purpose of investing in this stock. I haven't been able to afford as many shares or accumulate as quickly as some here, but I did what I could afford to do. And will continue to do so when I have the opportunity. Talking to others my age, including some like-minded friends, there's generally a fair bit of interest in investing in TSLA and a lot of love for their products. But it is indeed too rich an investment for many my age, at the current stock price.

 

[Khamul]

Seeing as there's not much going on, I'll risk a repost of this talk between Rob Mauer and Alex Potter, analyst at Piper Sandler. I can't recall who posted it earlier today, but I feel it deserves some more views. They go really in depth on especially analysts, how their view on Tesla has started to change, what factors they include and which they can't, like TE.

 

[Sudre]

Remember yesterday when I noted they were selling the heck out of the 700 PUTs all of which will expire Friday. Well today the SP sunk down and THEY sold a whole bunch of 750 PUTs. The bottom graph shows that sale. They are also still happy to sell you a 700 PUT.

Looks like 775 is being target today for selling CALLs altho 800s are still on blue light special too.

Step right up folks. We have a delivery fee, margin fee, and maintenance fee to go right along with those.

 

[Drax7]

It’s a dynamic situation, when the facts change we should be able to change our minds.
And if we access wrongly we can still adjust course. Nobody here has perfect insight.
The macro picture is disruptive and most are clueless on the path forward.
If revenues are slow to recover, it’s not clear how the stock price holds.[/QUOTE]

 

[mickificki]

Regarding "the young" and Tesla investing. I can relate. I'm a Millennial, Tesla is the first and only single stock I've invested in. I do have some other investments, but the amount I have invested in Tesla vastly outweighs those. I've been in the fortunate position of being able to set some of my income aside for the sole purpose of investing in this stock. I haven't been able to afford as many shares or accumulate as quickly as some here, but I did what I could afford to do. And will continue to do so when I have the opportunity. Talking to others my age, including some like-minded friends, there's generally a fair bit of interest in investing in TSLA and a lot of love for their products. But it is indeed too rich an investment for many my age, at the current stock price.

I get into this with my co-workers all the time. They look at tsla stock price "ooh that's too much , no way, i'll wait till it hits under $400". And when it goes to $350's like recently, "ooh, i'll wait till it goes under $300". Well congrats you just missed out on 2x'ing your money in a month, much less 10x'ing in 5 years.

instead, hey look, the etf JETS is cheap, i'll spend $3k or $5k on that, hey disney(DIS) is cheap, wow i'll get another $2k of that.

 

[Ameliorate]

I get into this with my co-workers all the time. They look at tsla stock price "ooh that's too much , no way, i'll wait till it hits under $400". And when it goes to $350's like recently, "ooh, i'll wait till it goes under $300". Well congrats you just missed out on 2x'ing your money in a month, much less 10x'ing in 5 years.

instead, hey look, the etf JETS is cheap, i'll spend $3k or $5k on that, hey disney(DIS) is cheap, wow i'll get another $2k of that.

That right there might be exactly what defines a successful investor.
Are those companies cheap relative to their past prices? Sure, anybody can do extremely simple math. Are they cheap with regards to how they will perform in the future? I have no idea.
Is Tesla cheap relative to the past? no. Is it a bargain going forward? likely.
One's ability to see future value is so important.

 

[Dutchie]

Turns out more people have coronavirus when you test more people for it

No, they had the virus already. Testing just give you the knowledge

 

[PlaidCPA]

esla will be buying "battery formation equipment" from Hanwha, not batteries...

I get into this with my co-workers all the time. They look at tsla stock price "ooh that's too much , no way, i'll wait till it hits under $400". And when it goes to $350's like recently, "ooh, i'll wait till it goes under $300". Well congrats you just missed out on 2x'ing your money in a month, much less 10x'ing in 5 years.

instead, hey look, the etf JETS is cheap, i'll spend $3k or $5k on that, hey disney(DIS) is cheap, wow i'll get another $2k of that.

Exactly. I have accountant friends and they constantly say "Holy manure, TSLA is more expensive than Apple... its so overvalued dude" (facepalm)

 

[Artful Dodger]

Seeing as there's not much going on, I'll risk a repost of this talk between Rob Mauer and Alex Potter, analyst at Piper Sandler. I can't recall who posted it earlier today, but I feel it deserves some more views. They go really in depth on especially analysts, how their view on Tesla has started to change, what factors they include and which they can't, like TE.

It's an hour and forty minute interview (not gonna happen).

Care to provide a summary? TIA.

 

[LN1_Casey]

TSLA is making an early run for it.

Edit: And rats. Jinxed it. xD

Edit 2: Maybe not.