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

[Maitri982]

OK, at this point I think the 25% agreement is smart, but also implies something bad could happen:
Elon knows that the shelter-in-place could extend indefinitely in the future; if he doesn't bargain at all, the factory could shutdown for a quarter. That will definitely make the company die. With 25% manufacturing, at least the company can survive.

I only worry about parts suppliers now. Missing one part and you can't make the car. If Elon was really playing 4d chess he would have built big parts inventory when C19 news first broke.

 

[RobStark]

TSLA now green after hours

 

[Maitri982]

Well. Sheet. F@ck

There seems to be an update to this story.

In a follow-up call on Wednesday afternoon, Kelly told BuzzFeed News that "producing cars" is not considered essential. If the company is found to be manufacturing automobiles, the county would take action to bring them under compliance with the law, he said.

"[Manufacturing cars] violates our health order and we're asking them to go to basic minimum functions," he said.

Source: Tesla's Factory Can Stay Open But Manufacturing Cars Would Break The Law, A Sheriff's Office Said

Updated 1:45 hours after original posting

TSLAQ all over it

TeslaCharts on Twitter

 

[Thekiwi]

There seems to be an update to this story.

In a follow-up call on Wednesday afternoon, Kelly told BuzzFeed News that "producing cars" is not considered essential. If the company is found to be manufacturing automobiles, the county would take action to bring them under compliance with the law, he said.

"[Manufacturing cars] violates our health order and we're asking them to go to basic minimum functions," he said.

Source: Tesla's Factory Can Stay Open But Manufacturing Cars Would Break The Law, A Sheriff's Office Said

Updated 1:45 hours after original posting

TSLAQ all over it

TeslaCharts on Twitter

tesla: “we are only making parts for essential car repairs. We are shipping these as a full set of 1 x spare parts” (sarcasm)

 

[Sudre]

At this time, Max Pain for this Friday is 550$. With the next two day's options trading that's likely to change.
What do people think Max Pain will be come Friday?

Opricot Open Interest|Volume|Max Pain

I think they will be shooting for under $400 but above 350. WE shall see if we can squeeze some good news out of these limes.

 

[ggr]

I decided I am not going to drink anymore....only because I don't think it is physically possible.

Hey what about that after hours action!

I don't drink any more. I don't drink any less, either...

 

[Cosmacelf]

OK, at this point I think the 25% agreement is smart, but also implies something bad could happen:
Elon knows that the shelter-in-place could extend indefinitely in the future; if he doesn't bargain at all, the factory could shutdown for a quarter. That will definitely make the company die. With 25% manufacturing, at least the company can survive.

It is also possible that US sales are anemic even with Model Y ramp. I think it’s a given that Model S, X and 3 sales are crashing and a lot of people are deferring Model Y. So a slowdown in production is probably matching supply with demand right now. It’ll be interesting indeed to see what the analysts and the market make of this quarter.

Anyone know what’s happening to 75% of the Fremont workforce? Are they being laid off?

Update: geez. News happens so fast. NO Fremont car production now. Ugh.

 

[MC3OZ]

tesla: “we are only making parts for essential car repairs. We are shipping these as a full set of 1 x spare parts” (sarcasm)

That Not-A-Car requires a separate part called a keycard which must be added to make it work.

 

[ammulder]

Anyone know what’s happening to 75% of the Fremont workforce? Are they being laid off?

That would be IN-SANE. No way they're stupid enough to lay those people off.

 

[dl003]

There seems to be an update to this story.

In a follow-up call on Wednesday afternoon, Kelly told BuzzFeed News that "producing cars" is not considered essential. If the company is found to be manufacturing automobiles, the county would take action to bring them under compliance with the law, he said.

"[Manufacturing cars] violates our health order and we're asking them to go to basic minimum functions," he said.

Source: Tesla's Factory Can Stay Open But Manufacturing Cars Would Break The Law, A Sheriff's Office Said

Updated 1:45 hours after original posting

TSLAQ all over it

TeslaCharts on Twitter

I dont understand how you allow a car factory to remain open for any purpose other than making car. Is this piece for real?

 

[Artful Dodger]

After-action Report: Wed, Mar 18, 2020: (Full-Day's Trading)

VWAP: $375.15
Volume: 23,783,342
Traded: $8,922,240,871.29 ($8.92 B)

Closing SP / VWAP: 96.23%
(TSLA closed BELOW today's Avg SP)​

Comment: "Macros, Multiplied"

 

[deffu]

There seems to be an update to this story.

In a follow-up call on Wednesday afternoon, Kelly told BuzzFeed News that "producing cars" is not considered essential. If the company is found to be manufacturing automobiles, the county would take action to bring them under compliance with the law, he said.

"[Manufacturing cars] violates our health order and we're asking them to go to basic minimum functions," he said.

Source: Tesla's Factory Can Stay Open But Manufacturing Cars Would Break The Law, A Sheriff's Office Said

Updated 1:45 hours after original posting

TSLAQ all over it

TeslaCharts on Twitter

I wonder if 25% regular workforce can still keep the assembly line running. Tesla might just use the 25% workers to make/stockpile parts, upgrading the lines. etc. which is still good. lets hope the bay area shelter order only lasts 3 weeks as it was initially enacted.

 

[KarenRei]

Can someone explain to me why if Alameda is fine with there being 2500 employees there, why they'd give a rat's arse whether those employees are producing cars or not?

Well, back to Tesla fighting this, based on their "transportation and energy are classified as essential field by the DHS" grounds.

 

[Cosmacelf]

That would be IN-SANE. No way they're stupid enough to lay those people off.

um, if they can’t manufacture cars, it would be insane not to lay them off. Call it furlough, or whatever, but no way Tesla can afford to pay them, IMHO.

 

[MC3OZ]

That would be IN-SANE. No way they're stupid enough to lay those people off.

There are multiple options, leave without pay, leave on partial pay, holiday leave, perhaps even sick leave.

As well they can share work around giving everyone 25% of a job, that keeps the workforce healthy and keeps skills current.

So everyone is probably working, just a lesser number of shifts...

 

[MC3OZ]

Can someone explain to me why if Alameda is fine with there being 2500 employees there, why they'd give a rat's arse whether those employees are producing cars or not?

Well, back to Tesla fighting this, based on their "transportation and energy are classified as essential field by the DHS" grounds.

They are making Not-A-Cars, which is just convenient way of packaging spare parts for easy transport.

 

[KarenRei]

They are making Not-A-Cars, which is just convenient way of packaging spare parts for easy transport.

GA is by far the most labour-intensive portion of manufacture, and is also the stage that turns "parts" into "cars". I wonder how quickly they could set up one or more improvised GA lines outside of Alameda...

I hope Alameda realizes that this sort of stance they're taking is going to destroy any chance of Tesla doing any further expansion in the area. I bet you that if this had happened earlier, they would have built the Y line at GF1 instead (they were, after all, wavering between the two).

 

[Webeevdrivers]

See my post:- Tesla, TSLA & the Investment World: the 2019-2020 Investors' Roundtable

25% is just the starting point, Tesla can work on getting agreement to increase it.

I also agree with this post:- Tesla, TSLA & the Investment World: the 2019-2020 Investors' Roundtable

Model Y is probably the priority and 25% may be enough to make the Model Y.

The next priority will probably be Plaid Model S but that may only be around August.

They may use forced downtime to make some improvements to the Model S/X/3 lines.

In the long run working out how to keep factories open is much more sensible than simply closing them, Elon and Tesla have solved much harder problems in the past.

If Health Officials make them jump over a high bar, I don't mind that at all, whatever the bar is they will clear it, because clearing it should be top priority.

I’m confused. I thought the sheriffs office said manufacturing cars would not be allowed. Why am I getting the impression that some people think production will continue? Has there been an update?

 

[Cosmacelf]

um, if they can’t manufacture cars, it would be insane not to lay them off. Call it furlough, or whatever, but no way Tesla can afford to pay them, IMHO.

Then again, that’s about $10M in salary per week for 7,500 people. So maybe they could afford to pay them if it’s only for a month or so.

 

[RiverCard]

At this stage I expect all Convertible notes to convert, .

Then maybe start selling shares and buying convertible notes at these levels. Upside opportunity with downside protection unless the bad happens.