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Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable
- Thread starter AudubonB
- Start date
I don't even know how Russ Mitchell can write this nonsense:
Tesla sets sales record, yet it's stuck with factory overcapacity
Tesla said it delivered a record 139,300 cars in the third quarter. For Tesla investors, that’s the good news. The bad news is that the company finds itself saddled with factory overcapacity.
The delivery numbers top the previous record by 24%. That record had been set last December, when 112,000 deliveries were reported, with all cars made at Tesla’s only factory at the time, in Fremont, Calif.
Then it opened a plant in Shanghai, dramatically increasing capacity.
But sales in China have been flat all year, and sales in Europe are down. Given that the Shanghai plant increased Tesla’s annual production capacity by 40%, “selling another 27,000 cars isn’t stellar,” said Matthias Schmidt, publisher of the European Electric Car Report in Berlin.
Tesla sets sales record, yet it's stuck with factory overcapacity
Tesla said it delivered a record 139,300 cars in the third quarter. For Tesla investors, that’s the good news. The bad news is that the company finds itself saddled with factory overcapacity.
The delivery numbers top the previous record by 24%. That record had been set last December, when 112,000 deliveries were reported, with all cars made at Tesla’s only factory at the time, in Fremont, Calif.
Then it opened a plant in Shanghai, dramatically increasing capacity.
But sales in China have been flat all year, and sales in Europe are down. Given that the Shanghai plant increased Tesla’s annual production capacity by 40%, “selling another 27,000 cars isn’t stellar,” said Matthias Schmidt, publisher of the European Electric Car Report in Berlin.
The macro-market weakness in the wake of the president's illness is unhelpful. Traders only in for the TSLA P&D report may be closing their positions. Selling on the news is typical.
Meanwhile it's Friday, which implies options expirations. Based on overnight open interest and current trading volumes, strikes at $420, $425 & $430 all appear to be potential targets for big option writers (mainly hedge funds and market makers) capable of share price manipulation.
Meanwhile it's Friday, which implies options expirations. Based on overnight open interest and current trading volumes, strikes at $420, $425 & $430 all appear to be potential targets for big option writers (mainly hedge funds and market makers) capable of share price manipulation.
Down 6-7% on record breaking quarter....Definitely just added to position.
Can’t wait for Berlin to come online.
I’ve put S&P in the back of my mind, but I cannot wait to be reminded
Also, thanks to the moderators who spend a lot of time on here making sure we are on topic.
I want to know what the weekly output of Shanghai is with regards to the new tooling. Sorry if this is redundant but if someone has numbers let me know.
Love,
Big time.
Can’t wait for Berlin to come online.
I’ve put S&P in the back of my mind, but I cannot wait to be reminded
Also, thanks to the moderators who spend a lot of time on here making sure we are on topic.
I want to know what the weekly output of Shanghai is with regards to the new tooling. Sorry if this is redundant but if someone has numbers let me know.
Love,
Big time.
TheTalkingMule
Distributed Energy Enthusiast
It's easy. Start with the conclusion and then work backwards
TheTalkingMule
Distributed Energy Enthusiast
Today was supposed to be a great macro FANG+T day, then it reversed. It happens. NASDAQ down 1.7% usually means TSLA down 4-5%. That doesn't account for our 6% drop and the fact that we just reported record deliveries and will likely hit 2020 guidance, but it's a good bit of the story. We got unlucky.Down 6-7% on record breaking quarter....Definitely just added to position.
Can’t wait for Berlin to come online.
I’ve put S&P in the back of my mind, but I cannot wait to be reminded
Also, thanks to the moderators who spend a lot of time on here making sure we are on topic.
I want to know what the weekly output of Shanghai is with regards to the new tooling. Sorry if this is redundant but if someone has numbers let me know.
Love,
Big time.
There will be a massive rebound next week, that's how these guys have been trading tech this entire "recovery".
What I'm really curious about is the time it will take to start producing the Model 2. I'm expecting production method like the Berlin Model Y - casted, smaller hatch style, more automated, reduced cost + ~55kWh pack for 300 mile range.
Would be another step function in Telsa EV value and massive, massive demand if anywhere near $25k
Would be another step function in Telsa EV value and massive, massive demand if anywhere near $25k
corduroy
Active Member
Yes. Yes to all of this. No surprises with the way Tesla has historically moved after good news. I’m sure there are people out there much more savvy than me who time their trading anticipating TSLA downward movement after positive news. I’m too much of an optimist for that though.
Thx
BT
StealthP3D
Well-Known Member
POTUS is getting a TESLA? And a custom one at that!
This is great news but I hope he doesn't tweet about the panel gaps or the whompy wheels!
bkp_duke
Well-Known Member
CARE. I sometimes fat finger the keyboard.
EDIT - thank goodness I have never done that on a trade . . .
Tesla saves battery assembly company from bankruptcy in new acquisition: report
Everything is falling into place more or less the way we predicted it would way back in 2011 when Tesla bought their first factory at bargain basement prices. Fremont was the canary in the coalmine for anyone paying attention. Big auto sold one of the world's biggest factories to a small EV startup for a song. Back then, I thought, well, that's the way it'll keep going. As Tesla expands, it can just keep on buying factories that big auto will be forced to sell as their demand drops.
It didn't quite work out that way. Tesla grew quicker than expected and had more access to capital than expected. It turned out that Giga Nevada was one of the ways Tesla was going to grow quickly. Tesla was going to need more battery cells (and a cheaper price) than the cell industry was planning to make. Tesla foresaw a cell supply crunch, so it used its capital to give the battery cell industry a boost. Last week's battery day saw an extension of that strategy with Tesla going upstream to now help out the lithium mining industry since, again, Tesla foresees a supply shortage in that sector. Again, Tesla is using its abundant capital to make this happen.
Acquiring Grohmann, Hibar, Maxwell, and now ATW is another strategy Tesla is employing. More foreseeable shortages - this time in engineering talent. And again, Tesla uses its very valuable stock price to acquire these companies - and at great prices. ATW was about to go bankrupt just because their customers, big auto, has had a huge revenue shortfall. So instead of buying big auto's factories, they are buying big auto's talented suppliers, and on the cheap.
This will just accelerate big auto's decline. Without engineering talent, they can't innovate. Without access to cheap battery cells, they can't compete. Tesla isn't screwing over big auto intentionally, but gosh, they couldn't be doing a much better strategic job at it if they were trying.
Everything is falling into place more or less the way we predicted it would way back in 2011 when Tesla bought their first factory at bargain basement prices. Fremont was the canary in the coalmine for anyone paying attention. Big auto sold one of the world's biggest factories to a small EV startup for a song. Back then, I thought, well, that's the way it'll keep going. As Tesla expands, it can just keep on buying factories that big auto will be forced to sell as their demand drops.
It didn't quite work out that way. Tesla grew quicker than expected and had more access to capital than expected. It turned out that Giga Nevada was one of the ways Tesla was going to grow quickly. Tesla was going to need more battery cells (and a cheaper price) than the cell industry was planning to make. Tesla foresaw a cell supply crunch, so it used its capital to give the battery cell industry a boost. Last week's battery day saw an extension of that strategy with Tesla going upstream to now help out the lithium mining industry since, again, Tesla foresees a supply shortage in that sector. Again, Tesla is using its abundant capital to make this happen.
Acquiring Grohmann, Hibar, Maxwell, and now ATW is another strategy Tesla is employing. More foreseeable shortages - this time in engineering talent. And again, Tesla uses its very valuable stock price to acquire these companies - and at great prices. ATW was about to go bankrupt just because their customers, big auto, has had a huge revenue shortfall. So instead of buying big auto's factories, they are buying big auto's talented suppliers, and on the cheap.
This will just accelerate big auto's decline. Without engineering talent, they can't innovate. Without access to cheap battery cells, they can't compete. Tesla isn't screwing over big auto intentionally, but gosh, they couldn't be doing a much better strategic job at it if they were trying.
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Well this is definitely not what I expected yesterday. Tesla exceeds the market expections, but the stock goes down because the White House resident tests positive for Covid? Jeez, you'd have thought EM and the entire board caught it.
To quote a good friend, "This sucks like a fare thee well."
To quote a good friend, "This sucks like a fare thee well."
jebinc
Well-Known Member
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