TSLA Market Action: 2018 Investor Roundtable

[shrspeedblade]

It shouldn't be overlooked that even Model S at its price point attracted a lot of buyers who had never paid that much for a car, and said they never would have, with the Model 3 being much less of a stretch than that!

It's not just upfront cost it's total cost of ownership, even if the Model 3 is only moderately reliable it compares favorably with well optioned compacts. Overcoming the preconceived bias is going to be the biggest challenge, which will be gradual as more cars are out on the market.

 

[neroden]

Any idea how 11,000 projects in Puerto Rico translates to revenue?

Perhaps something like $10k/project and $110m in rev?

Decent guess, with probably a $100 million wide error bar.

I don't really care about short-term numbers here: I do care that Tesla's production of Powerwall/Powerpack is not nearly high enough for demand, so I want to know what the bottlenecks in production (or delivery? or installation?) are and what is being done to ramp up.

 

[strangecosmos]

Does Tesla include depreciation and amortization for its factories under cost of revenues or SG&A?

cc: @ValueAnalyst

 

[ValueAnalyst]

Does Tesla include depreciation and amortization for its factories under cost of revenues or SG&A?

cc: @ValueAnalyst

Mostly, if not all, in cost of revenues.

 

[strangecosmos]

Mostly, if not all, in Cost of revenues.

Thank you!

 

[Dennisj00]

I just know the line I stood in that morning for a M3 reservation represented an extremely wide variation of owners from a 20k corolla /vw to a 70-80k bmwer/Mercedes.

I also know the most expensive car I ever bought was a 38k Highlander hybrid or a 30k Miata and a few years later $130 k into an S and M3 and very happy- and Long!

 

[Waiting4M3]

It all depends on what type of projects they are. Are they just small solar + a Powerwall? Are some of them large sub-stations? Hospitals?

I think $10k/project would be aminimum. A PW2 including install is $7500, plus small solar, almost no way it would be under $10k

 

[Lessmog]

Nah, TE's not going to zero, it already is aero!

FFS, zero, ZERO!

I heard you well the first time. Actually liked that even better!

 

[Waiting4M3]

I think Canada is really going to surprise everyone, including bulls.

I think Elon/Tesla purposely slowed down deliveries of S/X in the second quarter so he could pump out as much Model 3s as he could in June and deliver them in the US without crossing that 200k mark. The undelivered vehicles, will of course be in transit for next quarter.
...<snip>

Opinion: advantage slightly leaning on bulls. Tesla changing the VIN count was meant to take everyone by surprise. Elon has done enough to warn both bulls and bears: “place your bets” folks.

One thought regarding Tesla stashing thousands of M3 at the end of Q2, and changing their policy to not assign VINs until 7 days before delivery. Combine the two, we could see a YUUUGE avalanche of VIN assignments right at the end of June for delivery in early July. I think most traders are waiting till July 3rd for the Q2 delivery report to come out. But this is a possible catalyst that could occur before July.

 

[22522]

Mostly, if not all, in cost of revenues.

If it is not speculative it goes into Cost of Goods Sold.

 

[vinvin218]

Breaking News from Chinese Media: China’s Ministry of Commerce confirms that Tesla will build a plant (GF) in China

Shanghai


here is my tweet with link : vincent on Twitter

some detail info: "China will allow Tesla to establish its work as a wholly-owned subsidiary. China welcomes foreign investment, especially in high-tech, strategically emerging industries such as energy conservation and environmental protection in China."

 

[vinvin218]

@vinvin218 how is Chinese media on Tesla generally speaking? Positive, negative, neutral?

Very positive on Model 3 S X

 

[sundaymorning]

Breaking News from Chinese Media: China’s Ministry of Commerce confirms that Tesla will build a plant (GF) in China

Shanghai


here is my tweet with link : vincent on Twitter

some detail info: "China will allow Tesla to establish its work as a wholly-owned subsidiary. China welcomes foreign investment, especially in high-tech, strategically emerging industries such as energy conservation and environmental protection in China."

Thank you for this @vinvin218, here’s the English translation:

Breaking the barriers, the Chinese Ministry of Commerce confirmed Tesla will build a factory in Shanghai

The Chinese Ministry of Commerce has confirmed that Tesla will establish a wholly-owned factory in the Shanghai Self-Trade Zone. This move will break the limit of more than three decades.

"As far as we know, Tesla is negotiating with the Shanghai Municipal Government on the establishment of a factory." China will allow Tesla to establish a work as a wholly-owned subsidiary, and China welcomes foreign investment, especially on the high side. Technology, strategically emerging industries such as energy conservation and environmental protection in China.

 

[ValueAnalyst]

If it is not speculative it goes into Cost of Goods Sold.

Tesla's line item for the usual COGS is "Cost of revenue" on its income statement. It's the same thing.

 

[dandurston]

Thank you for this @vinvin218, here’s the English translation:

Breaking the barriers, the Chinese Ministry of Commerce confirmed Tesla will build a factory in Shanghai

The Chinese Ministry of Commerce has confirmed that Tesla will establish a wholly-owned factory in the Shanghai Self-Trade Zone. This move will break the limit of more than three decades.

"As far as we know, Tesla is negotiating with the Shanghai Municipal Government on the establishment of a factory." China will allow Tesla to establish a work as a wholly-owned subsidiary, and China welcomes foreign investment, especially on the high side. Technology, strategically emerging industries such as energy conservation and environmental protection in China.

These quotes appear inconsistent to me. The first says Tesla "will establish a factory " but the second says that Tesla "is negotiating....on the establishment of a factory". I fully expect Tesla will build a factory, but it sounds like things are still in the negotiation stage, not at the "for sure" stage.

 

[Wnuk]

Bear spin: Tesla will need a cap raise to pay for new factory in China.

 

[JRP3]

Breaking News from Chinese Media: China’s Ministry of Commerce confirms that Tesla will build a plant (GF) in China

Shanghai


here is my tweet with link : vincent on Twitter

some detail info: "China will allow Tesla to establish its work as a wholly-owned subsidiary. China welcomes foreign investment, especially in high-tech, strategically emerging industries such as energy conservation and environmental protection in China."

Some people are saying it's a reference to an older, inaccurate article. Can you clarify?

 

[vinvin218]

Some people are saying it's a reference to an older, inaccurate article. Can you clarify?

If a media company in China made up the story with a report about "Chinese Ministry of Commerce confirmed" , then this media will be in deep *sugar* trouble.

 

[vinvin218]

These quotes appear inconsistent to me. The first says Tesla "will establish a factory " but the second says that Tesla "is negotiating....on the establishment of a factory". I fully expect Tesla will build a factory, but it sounds like things are still in the negotiation stage, not at the "for sure" stage.

"is negotiating....on the establishment of a factory" was reported by Wall St Journal last week.

 

[vinvin218]

These quotes appear inconsistent to me. The first says Tesla "will establish a factory " but the second says that Tesla "is negotiating....on the establishment of a factory". I fully expect Tesla will build a factory, but it sounds like things are still in the negotiation stage, not at the "for sure" stage.

And the tweet i posted was happened within 24hrs