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

[Singuy]

https://twitter.com/x/status/1452715560513515523

 

[lafrisbee]

The Future of Hertz will be as a dual business...you can rent vehicle by the day...or by the trip (robotaxi)>
Now the facet not seen till you move the diamond... The geographic-advantage of Hertz at airports will displace shuttles and taxi services.
Hertz may make more at some airports doing rides to and from the airport, especially if they charge the rider by a standard shuttle fee.

 

[ByeByeJohnny]

Took 3½ hours to catch-up reading tonight. In the middle of that it hit me that I was actually a Teslanaire. No matter how you figure it.

I'm past 50. Before 2017 I had never had even $5.000 in total savings at any point in my life. In late 2018 I suddenly had $15.000. Just like someone else mentioned in a post today that would never make a meaningful difference if put into funds so I decided to find something that maybe could.

Three weeks of studying/reading/youtube watching led me to Tesla and today with the help of shares and the occasional shift to options I passed $1 million in tsla assets. Never put more than that original $15k in.

Without finding this thread there is zero chance I would have held through the downswings. So thanks again to everyone that has been a poster over the last few years.

 

[Curt Renz]

Tesla does not advertise. However, Hertz does. Its decisions to buy 100,000 Tesla EVs, and feature Tom Brady in related ads are perhaps even more significant than some imagine.

I expect the reason Brady was chosen for the ads is his influence with viewers of televised NFL games, not to mention the upcoming World Series.

Furthermore, Hertz renters may become convinced to buy a Tesla, and suggest that their friends do so too.

Hertz will begin providing rental Teslas early next month, not later next year as stated by Phil LeBeau of CNBC. Hence the point of the ads with Tom Brady starting today. It's by the end of next year that Hertz expects to have completed its initial purchase of 100,000 Teslas.

USA Today - today: Hertz to buy 100,000 Tesla cars as rental car company pivots toward electric vehicles

Excerpts:

The rental car company, which filed for Chapter 11 bankruptcy protection early in the COVID-19 pandemic, announced Monday that it plans to buy 100,000 cars from Tesla by the end of 2022 in a pivot toward electric vehicles...

...Hertz said it would provide Tesla Model 3 compact cars for rent at airport and neighborhood locations in major markets and certain European cities beginning in early November.

 

[Singuy]

These guys can't even get production on one line to mass produce....

Rivian R1T production rate stalls at just over 1 electric truck per day

Rivian revealed the shockingly low production rate when they filed Amendment No.1 to their original S-1 filing October 22, 2021.

driveteslacanada.ca

That last guy on the assembly line must be playing candy crush all day just to wait his turn to drill in some screws as he waits 14hrs for the truck to get to him.

 

[Prunesquallor]

I would think he can borrow any amount needed. Seems like a trustworthy guy. I’d probably lend him a few bucks if he asked.

Just sayin.

That’s what drives some people nuts. He has a paper worth of billions, can borrow as much as he needs, pays negligible interest, and no taxes.

I am emulating this on a microscopic scale.

 

[MP3Mike]

I would think he can borrow any amount needed. Seems like a trustworthy guy. I’d probably lend him a few bucks if he asked.

He might be able to, but then he would have to pay interest on that loan. (Either selling ~240k shares per year or continue to borrow even more every year.) At some point you have to pay the piper.

There is also a limit on how many of his TSLA shares he is allowed to use as collateral. (I don't know if it is a hard limit on the number or a percentage of his shares.)

 

[Dwdnjck]

Now we need a deal for Hertz to supply Tesla with service loaners.

 

[MP3Mike]

That’s what drives some people nuts. He has a paper worth of billions, can borrow as much as he needs, pays negligible interest, and no taxes.

No, he has to pay taxes on the options he executes. It isn't optional. (The taxes cost way more than executing the options.)

 

[Prunesquallor]

No, he has to pay taxes on the options he executes. It isn't optional. (The taxes cost way more than executing the options.)

I meant taxes on the loan.

 

[jhm]

So when does Avis announce their contract to buy the best cars on the planet? Can we do a new car rental contract every week now?

I think Hertz was smart enough to buy up the available supply so that Avis and other can't get into the action in any big way. Avis would need to buy out Model Y production capacity at an extra $5k over the Model 3. I think this was a deliberate strategy.

 

[Fobble]

Now we need a deal for Hertz to supply Tesla with service loaners.

Oh great. You pat my back, I'll pat yours

 

[MXWing]

https://twitter.com/x/status/1452715560513515523

Hilarious how Elon is patting RJ Scaringe on the head and lecturing him the way I would my own kids.

 

[OrthoSurg]

Hertz will provide free charging for the Tesla Model 3 rental.

(Edit; Willow Hiller said the same thing about 5 minutes before me)View attachment 725770

Charging a Tesla | Hertz Electric Vehicles

Learn more about charging the Tesla, and explore more FAQ's around renting a Tesla with Hertz Rental Car.

www.hertz.com

Imagine a company paying Tom Brady to advertise test drives for Tesla with free charging.

That doesn’t hurt.

I am booking Model 3s with Hertz when I travel in the US or Europe for conferences for my CME credits next year.

 

[RobDickinson]

Where are the "tesla need to advertise and have a marketing dept" crowd.. ?

This is going to get more reach than superbowl adverts and puts literally millions of people into teslas cars every year.

 

[shrspeedblade]

Also, if each of those 100K Hertz cars get rented by 4 unique people per month who have never driven a Tesla, that's 400,000 people per month or 4.8 million people per year) who get to drive a Tesla for the first time! Me thinks that's going to ensure Tesla can make as many cars as they want and sell every one they make for a long time to come.

I am thinking along the same line. As someone who has given thousands of people a ride in my Tesla, for most of them their first time in the car, I often summarize with the warning they should be ready to buy before driving one, lest they have happen what happened to me. (Thanks @roblab !)

I can assure you the majority of the general public have little knowledge, or carefully implanted false knowledge, of EVs in general and Tesla in particular even today. It's changed a bit from 3 years ago, but it's not even close to being over 50% yet. Having a veteran owner with 175k miles under his belt talk about it goes a long way: driving the car/spending a few days with it will go even further.

Up to today I didn't think being production constrained would outlast Berlin and Austin being fully ramped. Now I'm not so sure.

 

[Artful Dodger]

That’s what drives some people nuts. He has a paper worth of billions, can borrow as much as he needs, pays negligible interest, and no taxes.

I am emulating this on a microscopic scale.

Yes, Elon's net worth passed $200B last month with the semi-annual liquidity event for SpaceX, back when TSLA was well below the $880 ATH close. It would be no problem for him to borrow ~4% of his net worth from his two big investment banks to pay off his tax bill in full all WITHOUT selling a single share.

That always smacked of Shortzes fantasy talk, like when they were foaming at the mouth in anticipation of Elon getting Margin Called back in June 2018.

Cheers!

 

[BrownOuttaSpec]

Hertz + Tesla is a huge deal!

Free advertising for Tesla for all the Hertz ads, Test drives to potential new Tesla customers all day long, rental car company competitors will have to do something to compete (Who else can supply a meaningful amount of EVs?Ford?GM? VW? LOL, nope! Another Tesla deal coming soon?), additional supercharger fees, FSD rental? in the near future. There is SO much upside to this annoucement I would almost say it was bigger than the Q3 earnings blowout.

We (TMC, Youtube,Twitter bloggers, etc) didn't see this as a catalyst for this year so I bet Wall Street didn't either.. I wouldn't be surprise if we see the same + $100/share gain tomorrow as everyone (MM, Investors, Avis/Allamo/Enterprise) tries to scramble to to do something to ride this explosive news.

 

[SO16]

Yes, Elon's net worth passed $200B last month with the semi-annual liquidity event for SpaceX, back when TSLA was well below the $880 ATH close. It would be no problem for him to borrow ~4% of his net worth from his two big investment banks to pay off his tax bill in full all WITHOUT selling a single share.

That always smacked of Shortzes fantasy talk, like when they were foaming at the mouth in anticipation of Elon getting Margin Called back in June 2018.

Cheers!

Too bad the taxes couldn’t be “paid” (liability reduced) by gifting shares to Tesla employees. Would be great PR and the unions would really be speechless.

 

[Knightshade]

That always smacked of Shortzes fantasy talk

Elons sales of tesla stock have always been to cover the exercise and tax cost on options.

Not sure why you think it's "fantasy" he'll do exactly the same thing next time.


I mean, Elon literally said he'd sell shares when he exercised to cover the taxes last month when discussing these exact options and the fact he'd have to pay a ton of taxes on them.

“So you will eventually pay a lot of taxes?” Swisher said.

“Massive, yeah,” Musk said. “Basically, a majority of what I sell will be tax.”