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

[Artful Dodger]

I missed mainly on the Regulatory Credits and strong Lease Revenues:

Nicely sussed on SG&A + CEO Award.

 

[wtlloyd]

Investment Grade, come out to plaaaayyy

You can fix that issue any time though, just by paying it off.

That's not how you do it.
AZBO - "All zero but one" .
Leave a trivial amount in balance to report each month - 1% or 2% of your credit limit.
This is a well documented strategy to maximize your credit rating.
There are others...

 

[adiggs]

No, but like actually. What is the plan with this much cash on hand? There's only so many factories and R&D to spend on

Elon - the guy that thinks starting a colony on Mars, moving Earth bound personal transport to a new energy source, and buying a major social media platform to take it private and improve the freedom of speech on the platform (agree or disagree with the intent).

Yeah - he's going to have a hard time figuring out what to do with cash on hand (not ).

 

[Prunesquallor]

Game on. On time.

 

[jbcarioca]

Best of all, the way I see it, is we don't care what Moody's has to say about TSLA debt. I really, really hope that Tesla does the 'inefficient' think and runs off of its own cash and doesn't borrow money. Or even roll over existing debt. Pay it off as it comes due and don't get any replacement loans.

I don't count lease type stuff - that's more working capital kind of stuff.

The have $100,000,000 is total debt remaining. Adding the zero's may help us think that their total debt ia more than a few days of free cash flow.

 

[MABMAB]

Nice to hear them all chuckling at the start.

 

[fiveten]

Why did it start on time????

 

[henchman24]

$288m of reg credit due to a CAFE change, did I hear that right?

 

[thx1139]

So Zach just said the change to CAFE standards added to the regulatory credits.

 

[EVMeister]

Nice to hear them all chuckling at the start.

Wasn't that when "SEC" was mentioned?

 

[dm28997]

True enough. In my mind this also reveals an interesting problem with modern, or at least USA, business. If you don't have debt / leverage then you're not doing it right. Good for the investment bankers (that price and sell the debt), but not necessarily appropriate or good for individual businesses.

Part of my attitude here is that my understanding is that Moody's et. al. revisit and update bond ratings when the company has new debt to price, and pays them to do so. I suppose that a 3rd party can ask Moody's to update the rating as well, such as a mutual fund or endowment that wants to invest but needs the investment grade due to their investment criteria. I realize that I could be wrong about the update cycle.

Perhaps Bitcoin mining from excess electrons could add to future financing. Is a Tesla Bank possible?

 

[TheTalkingMule]

Guidance reiterated at 50% or more.

 

[Moon Buggy]

What's this on time start nonsense? I was banking on another 15 mins to get my work done.

 

[thx1139]

$288m of reg credit due to a CAFE change, did I hear that right?

Yeah, but he seemed to say one time. I dont see how that can be. Its not like other manufactures mix just took a big jump in CAFE standards.

 

[henchman24]

50% growth still achievable! That's fantastic news for the stock!!

 

[Electroman]

While this is certainly a beat, I'm curious to see how the market actually reacts. As in tomorrow, when the SP drops because everyone thought a beat should have taken it up. We've all been down this road before. I'm happy they beat as a miss could have resulted in a precipitous Netflix drop, but I'm not convinced the Market is going to respond the way most think it should.

remember the 3 day rule

 

[TheTalkingMule]

Elon doing a good job not shooting himself in the crotch. 60% growth possible.

 

[Pezpunk]

new vehicle mentioned ... dedicated robotaxi. no steering wheel or pedals.

 

[larmor]

You lost me there.

I could see them treating this as if it were another one-off anomaly that won't be repeated but not as missed expectations.

Basically the street treats TSLA opposite to what rational or even irrational investment strategy is. The street demands increasing margins, higher revenues, guaranteed sales, but usually finds something weird or does a word twist to frame excellent results in a negative light.

for example:

Tesla Hikes Prices on Model 3 / Model Y Again​

Or Tesla books more profit on sold out M3/MY
https://www.thestreet.com/tesla/news/tesla-hikes-prices-on-model-3-model-y-again-tsla

 

[Prunesquallor]

new vehicle mentioned ... dedicated robotaxi. no steering wheel or pedals.

Volume production in 2024