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

[ByeByeJohnny]

That's a good point. I'm no accountant, but here was some accounting treatment discussion in the Tesla 10-K filed Feb 8, 2021: (excerpt from pg 22)



Paging @ByeByeJohnny You may have missed this discussion on March 13, 2021 since the topic was banned/relegated to another thread by our ever helpful MODS.

So my original point stands. Tesla has to sell BTC to lock in its value, otherwise it inevitably will incur an impairment charge at some future time which is NOT automatically undone. Only a sale revalues the asset after the impairment.

I fail to se anything relevant in the specific post you linked to or in any other post in that thread from one week before yours and two weeks after. Not gonna bother reading more.

A number of people already seem to agree with me that not selling in a quarter does nothing to the booked value of already owned crypto. From the Q1 report it appears that neither does selling.

 

[kengchang]

It’s hard to know without knowing how badly the pool is missing it’s emissions targets. Yes, if Stellantis and Honda are still woefully lacking, Tesla could be getting cash for every car they sell in the EU. More cars sold, more cash.

At SOME point, one would assume the partners would be selling enough of their own ZEVs that they wouldn’t need every Tesla. It appears they are not there.

Also, the rules are getting tougher every year - “phase-in” exemption for dirtiest cars: gone, Supercredits: reduced. In 2024 the targets get dramatically reduced. The goalposts are moving faster than the ball carriers.

I used to try to estimate the credits Tesla could get, but it turned into an exercise in frustration. Too many unknowns, not enough equations.

 

[joh01652]

I think you got the figures backwards on this one. (Or was it a downgrade and not an upgrade?)

Edit I looked and they upped the price target form $419 to $1,071. That is a big hike in price target.

I simply copy-and-pasted the headline from my Schwab account. Regardless, the PT is close to $1000 and they have a "Buy" rating on the stock (I'm assuming Schwab typed the info correctly), so a bullish PT in any case.

 

[keydiver]

On the surface: Weird.
On the other hand: It shows that Elon's stature has grown a lot the last few years. Even detractors have to recognize much, or at least some of his unique acumen. If not, they are simple not credible, and too many people ignore what else they have to say.
So even as weird as it is, it is actually very positive.

Or, maybe they're afraid that someone else is going to come along as the "Nikola Tesla of our time"?

 

[Artful Dodger]

I fail to se anything relevant in the specific post you linked to or in any other post in that thread from one week before yours and two weeks after. Not gonna bother reading more.

A number of people already seem to agree with me that not selling in a quarter does nothing to the booked value of already owned crypto. From the Q1 report it appears that neither does selling.

From the 10-K :

"any decrease in their fair values below our carrying values for such assets at any time subsequent to their acquisition will require us to recognize impairment charges, whereas we may make no upward revisions for any market price increases until a sale"​

So Tesla CLEARLY SAYS if BTC goes below the level where they bought it, then they have to declare a loss, but they also can't undo the loss w/o selling the asset

Blame GAAP.

 

[MP3Mike]

Another good video by Rob:

Shows that Jim Cramer doesn't even get the SBC issues...

 

[Joe F]

You offered that a media person told you they did what they did (the did being essentially bad behavior) because it put food on their table.

That is a bs answer to questionable behavior and unacceptable. That’s what I originally was commenting on.

I mistreat dogs because cat owners pay me to cat sit. Replace mistreat with bash, dogs with Tesla, cat owners with GM/Ford/VW/any OEM and cat sit with talk them up. I bash Tesla because GM pays me to talk them up (and it puts food on my table).

I have a problem with that. You should and even more so the media person who thinks it’s okay to do because it puts food on their table.

Edit: I went back to reread your original post on the subject to remind myself what triggered me and to try and understand your responses since. I was triggered specifically by your use of ‘BS’ commercials. Perhaps you meant something else than what I interpreted.

You then went on to equate that reasoning to those who bash Tesla, which sent me over the edge.

I believe we are on the same page, but I think I’m reading a different paragraph.

Bolded above is not what I said. Post is here.

Thank you for going back to reread it. Sorry it triggered you; It was not intended to. And yes, on your points, we are 100% on the same page, but that's not what I wrote or meant.

For clarification, I once complained to a CNBC reporter who once (as best I can recall now) commented about how good a commercial was, and possibly it was, I truly don't recall. Doesn't matter now.

My point to her then was commercials are a scourge on society with their constant same old tired messaging that they think will somehow cause consumers to buy their products. They are BS messages as far as I am concerned, and boring as hell. Do I really need to be told the same thing 25 times a day? Or told "call now" and hear their phone number repeated 3-5 times in the same commercial. Hence the BS comment.

At that point, she stated that, essentially, those commercials are what pays the enormous bills media incurs in producing their broadcasts. And by extension, pays her salary and puts food on her family's table.

Friends now?

 

[printf42]

Just wait until TSLA starts realizing FSD revenue. The Short "interpretation" = Tesla's massive ER beat is from software NOT cars... deduct that and they are losing $...

And Tesla FSD is not sustainable income. Because it will soon be rated weapon grade AI and limited to US military use only, with restricted exports.
/s

 

[ByeByeJohnny]

From the 10-K :

"any decrease in their fair values below our carrying values for such assets at any time subsequent to their acquisition will require us to recognize impairment charges, whereas we may make no upward revisions for any market price increases until a sale"​

So Tesla CLEARLY SAYS if BTC goes below the level where they bought it, then they have to declare a loss, but they also can't undo the loss w/o selling the asset

Blame GAAP.

The 10-K supports what I (and others) have been saying the whole time and not what you said.

You even went back to your original post and edited to say you were wrong. You write above what it CLEARLY SAYS. Which is not what you said. At all.

 

[StealthP3D]

I simply copy-and-pasted the headline from my Schwab account. Regardless, the PT is close to $1000 and they have a "Buy" rating on the stock (I'm assuming Schwab typed the info correctly), so a bullish PT in any case.

Schwab didn't type anything - they are just republishing other news. Schwab is still reporting it as an apparent lowering of the price target. So is Marketscreener:

Tesla : Canaccord Genuity Adjusts Tesla's Price Target to $974 From $1,071, Maintains Buy Rating

-- Tesla has an average rating of hold and price targets ranging from $155 to $1,200, according to analysts polled by Capital IQ. Price: 718.32, Change: -19.88, Percent Change: -2.69 ...

www.marketscreener.com

 

[Phobi]

It’ll be interesting to see what comes of the upcoming Stellantis Electrification day (July 8th) with FCA seemingly buying the bulk of the credits. The merger with PSA “should” help alleviate future credit purchases...but in reality I highly doubt it.

-Three EV centric car/suv platforms “starting” in 2023
-Two Battery factories end of 2023 and 2025 respectively
-2024+ Special forth platform for pickups...yea

If curious, you can read here.

 

[Todd Burch]

Nah. Echo chambers are dangerous. You need to know all viewpoints and know what your enemies are spouting.

I agree. If they aren't spouting nonsense.

 

[Curt Renz]

Reuters - hour ago: Government Loans for Power Grid

Excerpt:

The U.S. Energy Department said on Tuesday it is offering up to $8.35 billion in loans for companies to boost the power grid as part of the Biden administration’s goal to decarbonize it by 2035.

The department is making financing available for projects that improve resilience and expand transmission capacity across the grid, “so we can reliably move clean energy from places where it’s produced to places where it’s needed most,” Energy Secretary Jennifer Granholm said.

 

[Opus BC fan]

Just taking a step back and looking at the narrative in the last month

FROM Will they produce and deliver enough? (in the worst quarter of every year for an auto manufacturer)
TO Blowout production and delivery numbers!
TO Today's "Failure" and "Disappointment" at not posting astronomical profits (while meeting & exceeding rational expectations)
AND everything is spun to suppress TSLA.

Give me a break!

I don't think I EVER want to sell my shares now!
(that's not really a big change in my position, I am in for the cause more than the money)

 

[corduroy]

Well, I was wrong, no red to green for us today. So I bought 3 shares at the close in protest.

 

[TheTalkingMule]

Cap the top.....push it doooooooowwwnnn. Let's see what tomorrow brings!

 

[woodisgood]

Not that I want to restart the conversation regarding SNL, but this article illustrates exactly why the general public needs to see more of the real Elon. If SNL writers, who probably represent the “woke left,” have such a poor impression and understanding of what Elon is all about, it’s a problem for the mission and all of the things Elon is trying to accomplish. The court of public opinion is important, and it’s often wrong.

I wonder if folks would be so upset or articles like this being put out if it were Bezos or Gates or Buffett hosting.

'SNL' cast members signal they're unhappy about Elon Musk hosting. He's not the first to cause a stir

In a surprise move over the weekend, "Saturday Night Live" announced that business mogul Elon Musk would be hosting the NBC variety show on May 8. Some "SNL" cast members didn't seem too excited about it.

www.cnn.com

 

[ggies07]

Reuters - hour ago: Government Loans for Power Grid

Excerpt:

The U.S. Energy Department said on Tuesday it is offering up to $8.35 billion in loans for companies to boost the power grid as part of the Biden administration’s goal to decarbonize it by 2035.

The department is making financing available for projects that improve resilience and expand transmission capacity across the grid, “so we can reliably move clean energy from places where it’s produced to places where it’s needed most,” Energy Secretary Jennifer Granholm said.

Huh, isn't this exactly what Elon was talking about on the call yesterday about how this goes against the current () of the best way to upgrade the grid? Local, renewable energy is the cheapest and easiest way to go.

 

[Artful Dodger]

Huh, isn't this exactly what Elon was talking about on the call yesterday about how this goes against the current () of the best way to upgrade the grid? Local, renewable energy is the cheapest and easiest way to go.

Elon also talked about HVDC transmission lines and I^2R. Doubtless went over many heads in the financial media, but you should see how he intends for the two to work in concert.

Cheers!

 

[ZachF]

Reuters - hour ago: Government Loans for Power Grid

Excerpt:

The U.S. Energy Department said on Tuesday it is offering up to $8.35 billion in loans for companies to boost the power grid as part of the Biden administration’s goal to decarbonize it by 2035.

The department is making financing available for projects that improve resilience and expand transmission capacity across the grid, “so we can reliably move clean energy from places where it’s produced to places where it’s needed most,” Energy Secretary Jennifer Granholm said.

Renewables are already dirt cheap.

If we want renewable penetration to really speed up, we should focus on batteries and a nationwide HVDC grid (And if Canada and Mexico want to get in on the game, continent-wide.)