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

[MP3Mike]

I've spent 48 hours trying to figure out why a 100,000 order by Hertz matters at all when TSLA can't fill all the orders from consumer demand as it is. What about this makes people decide now to buy TSLA? Meanwhile there seems to be a complete lack of any discussion (IRL not here, I mean) about 2 enormous factories that are about to open and essentially double production capacity of one of the fastest growing companies in the world. If anything that should have been a slow-burning catalyst for sustained buying for the last 6 months at least. I don't get this game at all.

The market didn't believe that there would be enough demand to consume what the new factories could produce. The Hertz order(s) show that there is plenty of demand to support increasing production capacity.

 

[BitJam]

Not to sound paranoid, but it does seem like this Hertz deal has given the symbolic "ok" for companies to embrace Tesla. We saw it first with a few suppliers, and now it's moving to the mainstream.

I agree. In addition, Hertz will be a valuable corporate ally when the fight with the regulators goes full Battle Royale. Hertz said they are planning to be ahead of their competitors by knowing how to maintain a fleet of EVs when autonomy happens.

It's like the Emperor's New Clothes in reverse. Hertz cut through all the FUD and BS that has been thrown at Tesla. $4.2B speaks volumes. And the free publicity (free to Tesla) and the millions of test drives are going to send demand for Teslas through the roof.

Hertz played the role of Mikey:

 

[Prunesquallor]

Okay this is way over my head, but congrats on your success here. I'm still learning stock terms beyond 'buy, sell, hold, market order, limit order, etc.'. Thanks for explaining it!

What is this “sell” of which you speak?

 

[AudubonB]

You are a dyed-in-the-wool Terry Pratchett fan. And if by lamentable misfortune you’ve not read his books, run, do not walk, to your nearest bookstore, library, or even to Amazon.

From Monstrous Regiment:

The enemy wasn’t men, or women, or the old, or even the dead. It was just bleedin’ stupid people who came in all varieties. And no one had the right to be stupid.

Which of my siglines/other-kind-of line am I going to have to abandon? All of them are my meta-children..... What a terrible choice!

 

[AudubonB]

{ Sigh }

Done. Hope everyone approves.

 

[Prunesquallor]

I'll be curious to see if Tesla sell offs along with Apple/Amazon or if investors see Tesla in an even more positive light now that it's clear for Q4 and Q1, Tesla will be a much stronger growth play (both revenue and earnings play) over those

Check AH for your answer

 

[Fobble]

some1 is pumping the SP, so EM has to pay more taxes

Yeah, EM to pay more tax or worse, to pay more tax and to Unionize Tesla (RE: Robert Reich)

 

[Iain]

The market didn't believe that there would be enough demand to consume what the new factories could produce. The Hertz order(s) show that there is plenty of demand to support increasing production capacity.

I’ll translate that into Gordo speak. Tesla’s demand has fallen off a cliff ( again) and so they have given Hertz a sweetheart deal in exchange for free advertising. Revised target is now $15.

 

[Prunesquallor]

So then... LG battery cells?

Cheers!

 

[Prunesquallor]

https://twitter.com/x/status/1453807452449763330

https://twitter.com/x/status/1453807452449763330

 

[2daMoon]

Sure sure, but the last couple awesome ERs were awesome because of gigafactory China. Now, there are 2 more GFCs about to go on line and the stock rockets up in a couple days because of...Hertz?

It was about Hertz, a recognizable icon that has provided a fleet of "mainstream" cars for decades, accepting Tesla into the fold.

A third-party whom everybody knows now have given Tesla street cred as a mainstream brand that can be rented.

With this crowning of the brand it is easier for the Muggles to accept Tesla than it was before, when they only heard good things about it from the HODLers and lots of FUD from their "programming" sources.

Edit: Or, as @BitJam shared, "Hey Mikey, he likes it" goes further convincing folks than facts and figures.

 

[Ogre]

It was about Hertz, a recognizable icon that has provided a fleet of "mainstream" cars for decades, accepting Tesla into the fold.

A third-party whom everybody knows now have given Tesla street cred as a mainstream brand that can be rented.

With this crowning of the brand it is easier for the Muggles to accept Tesla than it was before, when they only heard good things about it from the HODLers and lots of FUD from their "programming" sources.

It is serendipity, gives Tesla legitimacy and it gives the wounded Hertz brand a little bit of premium shine and maybe a little more draw with the younger and wealthier renters.

 

[larmor]

You said a mouthful there. I've spent 48 hours trying to figure out why a 100,000 order by Hertz matters at all when TSLA can't fill all the orders from consumer demand as it is. What about this makes people decide now to buy TSLA? Meanwhile there seems to be a complete lack of any discussion (IRL not here, I mean) about 2 enormous factories that are about to open and essentially double production capacity of one of the fastest growing companies in the world. If anything that should have been a slow-burning catalyst for sustained buying for the last 6 months at least. I don't get this game at all. It did, however, give me the opportunity to increase my holdings this year so....thanks? It just seems impossible that I'm that much smarter than all these "professionals," but whatever. Crazy times.

Like others have said, while all cars Tesla makes are all ready sold, the market had presumed they were sold to EV and tesla fanatics and not people who need a car which happens to be EV. Hertz adding or rebuilding its fleet with Tesla, presumably M3, gives credence that Tesla makes great cars, which happen to also be EVs. It gives credence that EVs are usable on a daily basis, and highlights the low maintenance which large fleet operators are keenly aware of. I still have not heard any speculation on Tesla Insurance and does this play into the fleet purchase from Hertz as an add on and possible cost savings for Hertz?

 

[cusetownusa]

New BBB Act language is up (and there seems to be an agreement on this language). (https://rules.house.gov/sites/democrats.rules.house.gov/files/BILLS-117HR5376RH-RCP117-17.pdf)

I read it very quickly, but seems pretty similar to before.

- Income limitations at $800k joint/$400k individual.
- Capped at MSRPS of: $55k (Car); $64k (Van); $69k (SUV); $74k (Truck)
- Effective in 2022
- Base Credit of $4000
- Additional $3500 for batteries >40kWh (and a tiny gas tank)
- Additional $4500 for domestic unionized assembly
- Additional $500 for domestic batteries
- Expires 2031
- Can be point-of-sale after 2022

Final result for Tesla: $7500-$8000 credit depending on how battery manufacture is determined for Models 3/Y/Cybertruck.

My take: A net positive for Tesla. No reason to get up in arms about union assembly -- it will be years before domestic unionized manufacturers can produce same quantities as Tesla and for now and a long while, Tesla's cost advantages are likely greater than $4500k. Plus, for now, Tesla treated the same as closest global competitors like VW.

There is also still a used EV credit of $2000 for middle income taxpayers (up to $150k joint) purchasing cars for less than $25k.

Does that mean Ford and GM plug ins with tiny batteries get $8500 rebate? If so, then they will probably just add a plug in battery to every gas car for like $1000.

 

[Ogre]

Does that mean Ford and GM plug ins with tiny batteries get $8500 rebate? If so, then they will probably just add a plug in battery to every gas car for like $1000.

It very much looks like that Is exactly what the bill is doing.

Giant waste of taxpayer dollars.

 

[M|S|M MYP]

Found out why $TSLA was rising today and AH:

Same Cramer that said $TSLA was going to $1k last week.....

 

[larmor]

Does that mean Ford and GM plug ins with tiny batteries get $8500 rebate? If so, then they will probably just add a plug in battery to every gas car for like $1000.

They could duct tape a battery to the back of their cars... just saying.

 

[Robertj]

Draft bill

 

[2daMoon]

They could will duct tape a battery to the back of their cars... just saying.

FTFY

 

[Iain]

They could duct tape a battery to the back of their cars... just saying.

I believe the qualifying car needs to have a gas tank no larger than 2.5 gallons