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

[cliff harris]

If we had no other information, than potential layoffs...maybe the stock should drop. But as we all know how long the order backlog, and the profit per car is, surely the only possible response is that tesla are, yet again, managing to optimize their processes and do more with less?
I don't think elon ever gave up on the alien dreadnought idea. He had to re-trace his steps very quickly during model 3 ramp up because they tried too much too fast, but with billions in the bank, no debt to speak of, and now 4 factories to play with, I bet they are experimenting again with a super-optimized and streamlined production process.

I suspect the number of humans involved in a 4680 line is very very low. I also expect the number of humans involved in the cybertruck line is very very low.

 

[SN_8]

God help me if I start agreeing with Gary Black that a comms team is needed to provide better context and a more polished message in situations like this.

 

[mars_or_bust]

This is bullish: obviously the Optimus TeslaBots are more advanced than we thought, and are already ready to replace 10% of the current Tesla staff ;-)

 

[H Mak]

I didn't realize Honda was doing quite so horribly. Anyone know where they sit with EV development? They are one brand I don't recall hearing anything about.

They have an extremely cute looking EV but last time I looked it was overpriced and under-ranged. Also I've only ever seen one in real life here in the UK

 

[mars_or_bust]

God help me if I start agreeing with Gary Black that a comms team is needed to provide better context and a more polished message in situations like this.

Nah, not at this point. Whatever Tesla formally says, it WILL be spun the wrong way. History, regarding Tesla, has shown that the only way to reduce the negative spins is to provide as little info as possible. Giving ANY info lends credibility to the spins. And make no mistake, ALL official news, no matter how positive, WILL be spun negatively - there is a very clear, and well sponsored, agenda against Tesla, and the media is paid handsomely to participate in this agenda.

Maybe in the future, when the main enemies have been eliminated, or reduced to unimportance, would a traditional pr department make sense.

 

[mars_or_bust]

Cutting office jobs, not factory jobs. Less admin -> better efficiency.

https://twitter.com/x/status/1532675444960817152

 

[jbcarioca]

When look closely the "leaked" email about end of work from home and this 10% workforce cut fiasco (awaiting for the full unedited version or explanation/followup from Elon) is just perfect timing. Plus when these work from home ends we probably sees those "leak email" possibly disappeared and work efficiently will picked up once again.

This is plausible, if the leaks are correct. It will be important to know.
something analogous happened during Model 3 ramp IIRC.
Anyway post-pandemic major changes seem to be ubiquitous, so I see nothing disturbing about this, just continuing sharp attention to details and productivity.

 

[ZachF]

May 2022 - US Auto Sales - Ugly

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Link to Source:
Automotive News

Honda and Mazda…

 

[jbcarioca]

Elon still seems pretty reasonable to me and certainly not "radicalised". His tweets clearly state that he has voted for and donated to both parties in the past, and the current one in power has snubbed all of Tesla's accomplishments - so it is clearly a reasonable position for him to vote for the other team in this instance. He's clearly not (Practically - whatever that means) QANON or anything of the sort - perhaps you should reflect on how militant your own ideology is before jumping to these conclusions.

Demanding people return to the office again is not the result of some iron fisted tyrant. Any sort of job that benefits from in person collaboration can be improved by being in the office. I work in finance which should lend itself to remote work - but when it comes to training the new recruits and solving problems quickly, there is no better method than getting together in the same room and sorting out the problem - Just the learnings that are imbued by working next to more experienced people are noticeable. I can see how this would be doubly so for physical engineering.

I want Elon exactly where he is for as long as possible. It would be pretty strange to invest your dollarydoos with someone you have such little confidence in.

Thank you!

 

[ZachF]

I didn't realize Honda was doing quite so horribly. Anyone know where they sit with EV development? They are one brand I don't recall hearing anything about.

All of the Japanese OEM are horrendously behind on EVs.

 

[Mengy]

Cutting office jobs, not factory jobs. Less admin -> better efficiency.

https://twitter.com/x/status/1532675444960817152

Yep. I worked as an engineer in corporate America for over two decades, and frequent layoffs followed by hiring runs were a common way of "trimming the fat". This won't change the long term thesis of Tesla, though it could drop the stock a bit in the very short term.

EDIT: And looking at the stock in pre-market it has dropped quite a bit on this news, of course.

 

[Singuy]

Yep. I worked as an engineer in corporate America for over two decades, and frequent layoffs followed by hiring runs were a common way of "trimming the fat". This won't change the long term thesis of Tesla, though it could drop the stock a bit in the very short term.

EDIT: And looking at the stock in pre-market it has dropped quite a bit on this news, of course.

And will keep dropping until Elon say what Alex just said.

 

[saniflash]

EDIT: And looking at the stock in pre-market it has dropped quite a bit on this news, of course.

yep while normally stock price goes up when layoffs are announced because of the reduced fixed cost base going forward

coincidence this is leaked on a Fri AM when the stockprice was knocking at 800 with this open interest? now they even have a good shot at keeping it below 750, foregoing the payout of ALL the big call walls

when it comes to TSLA, the tail is wagging the dog

 

[marvinat0rz]

The last time I had stocks in a plane engineering company and they announced they were cutting 10% of employees to save costs, the stock price jumped 8% because investors liked the idea of cost saving. I am surprise the opposite is happening with TSLA even if the story was true.

I think the market is reacting to the fact that Musk has stated he is worried about Tesla's finances. Everyone figures they're in a super strong position, and then the CEO pops his head up and implies things are in dire straits. I wouldn't immediately think this is a big worry if you're focused on Tesla's long-term growth and dominance, but I can certainly see how it can be perceived as a negative rather than a positive signal.

You need to do a bit of reasoning, some might say mental gymnastics, to fit this into a long-term picture of a company that is pushing along on the perfect racing line towards global dominance. It wouldn't be the first time in Tesla's history that reality does indeed fit that kind of immediately counterintuitive interpretation, but it's far into the subtle realm where an average analyst would have to go out on a limb to defend it.

 

[Singuy]

yep while normally stock price goes up when layoffs are announced because of the reduced fixed cost base going forward

coincidence this is leaked on a Fri AM when the stockprice was knocking at 800 with this open interest? now they even have a good shot at keeping it below 750, foregoing the payout of ALL the big call walls

when it comes to TSLA, the tail is wagging the dog

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Factory jobs are directly related to production. A cut of 10% and a hiring freeze is a cut to growth.

This is why Elon need to clarify this is office jobs and not factory jobs. Huge difference. If it's all jobs then I wouldn't be surprised if we trip uptick rule today.

 

[Mengy]

Factory jobs are directly related to production. A cut of 10% and a hiring freeze is a cut to growth.

This is why Elon need to clarify this is office jobs and not factory jobs. Huge difference. If it's all jobs then I wouldn't be surprised if we trip uptick rule today.

In all honesty, if Tesla IS looking to cut factory jobs then I, even as a long term TSLA investor, would be very worried too. I want to see the growth continue to ramp, not decelerate.

 

[Todd Burch]

Lol there is absolutely no way Tesla is in any “dire straits” financially. Q2 won’t be the blockbuster due to China shutdown out of Tesla’s control, but they are still banking it and have almost no debt.

 

[traxila]

Elon has created an easy excuse to can anyone who pisses him off with his recent directives to come to work.

 

[ZachF]

Elon has created an easy excuse to can anyone who pisses him off with his recent directives to come to work.

This is it, right here.

 

[bro1999]

May 2022 - US Auto Sales - Ugly

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Link to Source:
Automotive News

That explains why the Honda dealership near me looks like an abandoned parking lot.