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

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Aircraft are scarce and always have been even in the US, unremarkable, uncollectible 40 year old Cessna 152s with massive airtime sell for $70,000. That's for a 2 seater barely capable of moving 2 skinny guys at 90 MPH.

There are several orders of magnitude more ICE vehicles then there were ever piston aircraft. Comparing the 2 is just ridiculous.

Third world countries are not going to prop up the resale value of used ICE vehicles.
Yes they will. They already do. Embargoed poor countries already do that. Singapore exports used cars en masse (they don't let >5 year old cars there for the most part. Japan exports used cars throughout the RHD markets just as does Singapore. LHD is different, but has far broader destruction of used cars.

Luckily, those of you who think otherwise for both aircraft and motor vehicles haven't had to live in the consuming countries. Comparing C152 to ancient operating commercial aircraft, like even the Boeing 747 SPs still in commercial service in Iran recently.
 
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Welp so much for that theory about growth/risk leading the way. They’re taking it on the chin today. As for macros, I’m to thinking they get driven down to the June lows before the Fed meeting next week

Maybe I'm just feeling rosy this week, but IMO today is yet another super strong day. The macro pump is on full blast trying to push the end-of-the-world narrative, and TSLA is sitting here banging on the logical triple-witching close. And on very low volume.

Sure looks to me like MM's have been eating orders since 10:30am and will likely lose their grip on $300, slipping to hold maybe $305. That's quite strong considering we're all about to die in a cataclysmic FedEx cyclone of death in the second half of 2022.

We're ready to test and blast right through $333.33($1,000), today was simply not allowed to be the day. IMO triple witching needed this FedEx nonsense in order to not be defending that today.

We've learned a lot this week. Tuesday forced the world to show their cards, and they want TSLA above all else. We now just need the tide to come in.

Edit: And oh yeah.......you know this narrative is when oil futures pop 1% on the "end of the world"!
 
Yahoo is finally showing an EPS estimate again for TSLA 3Q. It's at $1.05

Screenshot_20220916-130641_Chrome.jpg
 
You seem to have gotten your tail in a twist over a bunch of things I never wrote. I was commenting on a post by a self-described "idiot" who was saying how amazingly wonderful FSD Beta had suddenly become for him. Not autopilot, not divided highways on long road trips: FSD Beta 10.69.2. And that it is now worth the ridiculous price Tesla is now charging, or even more, because wow!

And yeah, it's gotten a bit better, on the whole. Sadly it isn't anywhere close to autonomous, which means it isn't much use for all the use cases that would make it particularly valuable. That's undisputed. Sure, it's getting closer. And if you are willing to bet on the come, then maybe it's worth real money now. But so far, progress has been asymptomatically approaching better but not nearly good enough for autonomy, so I think not.

And while I'm sure you have "used it successfully on city streets at times", that doesn't mean it's anything but a novelty at this point. Successfully pretty much just means no interventions, not that you could pay no attention. You still had to remain attentive and you were responsible for any problems. So, it's fun if you like that sort of thing. But it's hardly worth real money.

What is worth something at this point is Navigate on Autopilot on highways. It consistently leads to less stress and better drives. This is (for me) mostly because I can pay much less detailed attention to what's going on, just monitor the big picture for unusual threats.
I originally thought that FSD was zero-or-one too (two? 😉). That is, it only had value if it required no oversight.

Now, I have a more nuanced view. It has considerable value even short of full autonomy.

As with Autopilot on freeways, I find that it takes less effort to drive and I feel I have a better overall situation awareness than if I have to focus more on keeping to the lane and maintaining a particular speed.

There was a time where I felt it demanded more than it contributed. Now, I think it contributes more even with the limitations that remain.

Over time, it’s learned—quite a bit actually—and I’ve also learned. I pay attention to where I am, the time of day, and what’s ahead and then I engage, disengage, or modulate FSD based on the situation.

For example, I use it in local school zones—where there are sidewalks, bike lanes, crosswalks all well marked—even though I still have to manually and quickly switch from the 30 mph speed limit to the 20 mph school hours limit every time I enter one here during school hours (because FSD doesn’t ‘get’ school hours yet). I find that my car keeps to the limit and the lane quite accurately. I expect that it will also avoid kids, bicycles, etc. I am able to keep a better watch for kids, bicycles, etc. myself than if I were driving without FSD. This is one reason FSD can make for vastly safer driving.

We ‘share the road’ where I live, meaning pedestrians, bicycles, and vehicles mix on many roads—without bike lanes, sidewalks, or much in the way of shoulders. Often there are tourists during the summer. We have a local tradition of giving pedestrians wide berth (remember pedestrians usually walk against traffic by law in the US) well before it is necessary just so folks walking don’t have to guess whether they are going to need to jump aside.

When will FSD learn this courtesy? Who knows? I don’t know if it’s learning from me. Does the FSD team study road segments where everybody turns it off?

Roundabouts I take on a case by case basis. I report issues, but usually not more than once per release.

Still FSD is a great tool now: I use FSD on almost every drive and most of the time during those drives. Even though I knew this, it was still a bit of a surprise how much I missed it when I didn’t have it when driving other cars recently.

Sure, you can complain that it isn’t yet fully autonomous everywhere and all the time. But the claim that it must be fully autonomous to have value is a specious one. I paid for it in part to help encourage the technology and I am encouraged by the progress.

My personal investment target for initial robotaxi deployment in the US has been 2024 (iirc, that’s been my target since I joined TMC). Seems to me we are track for that still.
 
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I agree…it’s underestimating but it’s a much more respectful estimate than I gave credit for.

I was eager beaver on dumping on MS/AJ. AJ, I apologize and take it back.

Haha, yeah, I wouldn't be so quick to apologize. Last time I looked at MS/AJ's 'predictions', they had Tesla China deliveries peaking around 2027, then declining after that. And, AJ thinks Tesla will have to spin off their China operations into another company.

Clearly, AJ should not DRINK the bong water... :p

Cheers to the Longs!
 
Not so good news
There are about 500 car fires a day in the US. Only one brand makes news when it happens.
 
Not so good news
I smell insurance fraud, or arson... From that:

According to Fire Officers on the scene, this fire may have been relatively easy to put out compared to some others across the nation because the entire bank of batteries dropped on the ground underneath the vehicle, where firefighters were focusing their fire attack.

I have never heard of the battery pack dropping out of a vehicle as a result of a fire. Of course we haven't seen many Model 3 fires to begin with.
 
I have been to places in lowland Bolivia, as far removed from enough of….anything…to make Paxson seem urban.
And shared the back seat of a taxi with two open barrels of gasoline. Not open-bunged barrels, but open-topped. 😱
Supply will meet demand, somehow, some way, everywhere.
In Sana'a my fuel was delivered by camel, but the barrels were sealed, more or less...and that was the capitol. not some remote lowland Bolivian site. Still, the local natural gas here in urban Rio de Janeiro, most of our gas comes from Bolivia.
 
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Not so good news
I have always wondered why Tesla fires always have either:

1. Total amount of gallons of water reported to put out the fire
2. Gallons of water/minute

Strange that hardly any other car fire, none of the above information is published 🤔 🤔 🤔 🤔
 
In Sana'a my fuel was delivered by camel, but the barrels were sealed, more or less...and that was the capitol. not some remote lowland Bolivian site. Still, the local natural gas were in urban Rio de Janeiro, most of out gas comes from Bolivia.
I have been to places in lowland Bolivia, as far removed from enough of….anything…to make Paxson seem urban.
And shared the back seat of a taxi with two open barrels of gasoline. Not open-bunged barrels, but open-topped. 😱
Supply will meet demand, somehow, some way, everywhere.
There are plenty of places in this world where you have to walk/ski/sail for days if you want gasoline or other fossil fuels. I've been in quite a few of them, including in Alaska, in Bolivia, and any others. Many times I have hiked for days to get kerosene or benzina blanca. Increasingly the folk in those places have man-carried (or woman-carried) in solar and wind and batteries and are very happy to stop carrying in kerosene/etc on their backs. Heck, way back in c.2000 high up in the Andes we installed a large solar array on - wait for it - an oil & gas well site because it was cheapier and easier than trucking in the fuel for a generator.

The world is changing.
 
Heck, way back in c.2000 high up in the Andes we installed a large solar array on - wait for it - an oil & gas well site because it was cheapier and easier than trucking in the fuel for a generator.

The world is changing.
That definitely qualifies for inclusion in the "Isn't It Ironic" song...
 
Just for scale, Toyota reported U.S. sales of 2,027,786 vehicles in 2021. That was up 10.4% over 2020. So 3M in the USA by 2030 would be excellent.

Still, I think they are underestimating U.S. sales at just 3.0 Million. With Fremont already at 700K/yr, that would mean Giga Texas capped at around 2.5M/yr and no other factories build in N. America this decade.

Unlikely, IMO. ;)

Cheers to the Longs!
Key word is the word "by" if they say "by" 2030 that means including what already sold and what sells in the next 7+ years hits 3M total.

If they say 3M per year by 2030 that is totally different.
 
~7% Nasdaq and ~5.5% SP500 from right here in 2 trading days would be a very large move after a week of large moves. Possible, just seems unlikely.

Here's an interesting point of reference. Tesla is ~299 today and Nasdaq is ~11,380. The last time the Nasdaq was around this level was July 18th. On July 18th, Tesla closed at 240.55 (split adjusted obviously). Tesla is up ~25% while the Nasdaq is roughly flat. If you extend earlier in July, you have a similar level Nasdaq with Tesla at 230. Pretty massive relative strength over the last couple months.
Yeah....I'd say those Nasdaq/S&P are definitely within the realm of possibility, especially considering where they're both at as of right now. Wall St will play up the 100 basis point Fed hike to stoke a ton of fear. The funny part is that I think if the Fed were to do it, it would actually be viewed favorably by Wall St. In that the Fed just rips the band aid off, speeds up the incoming recession, and then they'll pause in Nov.

As for TSLA specific, the strength this week has been astounding. But I gravitation of 300/share, I feel it's mostly options related. And I wouldn't be surprised at all to see TSLA underperform significantly next week.
 
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Heck, way back in c.2000 high up in the Andes we installed a large solar array on - wait for it - an oil & gas well site because it was cheapier and easier than trucking in the fuel for a generator.

U.S. Marines did exactly that for their outposts in Afghanistan. Not only cheaper, but fewer dead truck drivers in the fuel convoys, too.

Bonus.