TSLA Market Action: 2018 Investor Roundtable

[oneday]

TESLA NEITHER NEEDS NOR WANTS CAPITAL

SO **** WALL STREET

Short term that is the case. I hope Tesla provides at least one more secondary offering next year in the 3-8 billion range. The reason being the lack of interest compared to credit lines, bonds, etc and accelerate growth and its ambitious plans.

VA I know you have been expounding large profits in the next couple years and perhaps you’re right. Personally I think relying on profits to grow more organically would be against their mission.

 

[BornToFly]

One of the things that surprised me was the comment that Elon agrees with the thought that you aren't a real company if you aren't profitable, and he wants to be profitable after Q3. As an investor, I want them to raise more capital soon and build two new giant factories at the same time to start Model Y and pickup truck production ASAP. KEEP THE PEDAL TO THE METAL. Profits can come after total market domination!

 

[NOLA_Mike]

One of the things that surprised me was the comment that Elon agrees with the thought that you aren't a real company if you aren't profitable, and he wants to be profitable after Q3. As an investor, I want them to raise more capital soon and build two new giant factories at the same time to start Model Y and pickup truck production ASAP. KEEP THE PEDAL TO THE METAL. Profits can come after total market domination!

If his plans of domination of the Model 3 market segment come to fruition then he will have enough profits to finance all of that.

 

[rocketlow49]

One of the things that surprised me was the comment that Elon agrees with the thought that you aren't a real company if you aren't profitable, and he wants to be profitable after Q3. As an investor, I want them to raise more capital soon and build two new giant factories at the same time to start Model Y and pickup truck production ASAP. KEEP THE PEDAL TO THE METAL. Profits can come after total market domination!

I agree. But with so much debt, profit should come sooner rather than later

 

[Yonki]

Initially I was concerned about the negative effect Elon's F-You to Wall Street was going to have on the stock price. But then I thought...what are they gonna do? The Analyst Average at Fidelity already rates TSLA a 0.9 (on a scale of 0 to 10). Maybe they'll write some BS negative articles? Nope, the media's already saturated with BS negative articles / intentional misrepresentation.

Then I started thinking about the positive effect of Elon's F-You to Wall Street. First, I imagine he's feeling pretty damn good, like a huge amount of cow manure has been taken off his back. Second, we're probably going to get better questions at every future conference call from here on out, both because an "outsider" asked better questions than the analyst (so hopefully he or others similar will be back), and because analysts, even if they hate Elon and TSLA, won't want to be hung up on again. Finally, he's energized his base! I'm happier and more confident in TSLA than ever before!

 

[Paracelsus]

As an already long long-term investor who has listened to every call since the spring of 2013, I was a little taken back when this call changed direction abruptly and purposefully, but it didn't take long until I found I was enjoying this more than any of the previous calls:

• FUD works best when people believe it is relevant. Elon took full advantage of the most public forum he had available to drop the mic on everyone he wanted to be viewed as unrelevant or misleading. So what it was unconventional? When has Tesla been conventional? The 'unconventional approach' is the foundation to their success.
• I viewed this pre-conceived change in direction as the result of a 'First Principles' approach to FUD & Quarterly calls. Use the very thing that the people that have screwed you need most to beat them with.......and do it in the coliseum they thought they owned. "Are you not entertained?" says Elon after slaying the Gladiator on his way to earning his freedom.
• Wall Street wants Tesla to borrow money. And when they borrow money Wall Street wants to maximize the amount they have to borrow. Elon reminded them today that Tesla is now printing their own money at a sufficient rate to achieve Tesla's goals. Short term day trading can no longer effect Tesla's borrowing capacity because Tesla now has no need to borrow. I think Elon is heavily motivated to solve Model 3 ramp for the very reason that he never has to succumb to short term Wall Street manipulation again once he reaches 5,000 per week.
• And then very quietly and humbly at the end of the call Elon told the world that Tesla will soon be printing money in China - with China empowering them to do so at the highest levels - in a Gigafactory making both batteries and cars. This is tremendous lost opportunity for Wall Street and a tremendous gain for Tesla. I think this opportunity further empowered Elon's behavior today.

In summary, Elon was rightfully pissed that he had been publicly undermined by a group of people wanting him to continue their mafioso-like financial protection - where you pay more and more each time for less and less support............and in the 'Final Act' of the performance he took them behind the woodshed and beat them with the China-stick. Ha! Love it. Long overdue. Tesla has rewritten the recipe for batteries, cars, solar, energy distribution, dealerships, and now they may likely rewrite the recipe for Earnings calls. I want them all on YouTube video live going forward - taking great interesting questions from a broader audience, and doing so with better sound WITH video to boot. And soon they can then broadcast them on Tesla/SpaceX internet to twist the knife. I need a celebration beer............................

 

[Bet TSLA]

Profits can come after total market domination!

I think that the old rule about most of the smart people in the world always being in other companies applies. To really enable the transition to sustainable energy Tesla needs to have lots of other companies joining them. Being immensely profitable will do that, in the long run much faster than trying to do it themselves.

So far they've been going it alone because nobody has been willing to follow. Demonstrating awesome technology and inviting others to share hasn't done the trick. It's likely that demonstrating immense wealth will. I'm happy to be along for that ride.

 

[JRP3]

As an investor, I want them to raise more capital soon and build two new giant factories at the same time to start Model Y and pickup truck production ASAP.

Profits will increase the share price which will increase the efficiency of any cap raise. I approve.

 

[SteveG3]

One of the things that surprised me was the comment that Elon agrees with the thought that you aren't a real company if you aren't profitable, and he wants to be profitable after Q3. As an investor, I want them to raise more capital soon and build two new giant factories at the same time to start Model Y and pickup truck production ASAP. KEEP THE PEDAL TO THE METAL. Profits can come after total market domination!

He did say that "real company," comment. Kind of get the feeling today what he's actually decided is that the raise money for expansion model is not worth playing within Wall Street's idea of 'rules,' so, it's more about

"I don't want to play that game, but, I'll somewhat sarcastically say, 'yeah, all you guys were right, we've not been a real company' and be largely done with the lot of you, and just fund our growth from profits from our existing business, even if it means going somewhat slower."

 

[Starno]

One of the things that surprised me was the comment that Elon agrees with the thought that you aren't a real company if you aren't profitable, and he wants to be profitable after Q3. As an investor, I want them to raise more capital soon and build two new giant factories at the same time to start Model Y and pickup truck production ASAP. KEEP THE PEDAL TO THE METAL. Profits can come after total market domination!

I agree but being profitable is useful when there is no external capital available. Such circumstances often happen during an economic recession. I think Tesla, as long as they execute well, will always find capital if they want. But better be safe than sorry.

 

[Bet TSLA]

Initially I was concerned about the negative effect of Elon's F-You to Wall Street was going to have on the stock price.

I think that by morning the ridiculous dip will be gone. I think TSLA will close green tomorrow (although that depends on macros to a degree). I bought 1500 shares after hours at $287.05. Long term free money! Short term... we'll see.

 

[anon]

This might impact the stock tomorrow - NHTSA backing away from Tesla's claims about autopilot safety - their report last year contained only a cursory analysis: U.S. safety agency says 'did not assess' Tesla Autopilot effectiveness

 

[BornToFly]

The CC was awesome. In addition to buying after hours around 286, I have a limit order for tomorrow for 275 just in case we wake up in up-side down world.

 

[Zhelko Dimic]

Elon is.. I don't know what he's doing here. Doesn't seem great.

Elon is ... being his usual immature self.
Just more so...
His answer to Ben Kalo's question is real tone deaf.
But I guess balanced ones don't get to reinvent whole industries

 

[EinSV]

This might impact the stock tomorrow - NHTSA backing away from Tesla's claims about autopilot safety - their report last year contained only a cursory analysis: U.S. safety agency says 'did not assess' Tesla Autopilot effectiveness

One positive nugget from the call was Elon's statement that Tesla will be releasing quarterly Autopilot safety stats -- that should be very helpful for raising awareness of Autopilot's lifesaving potential and defusing fears about Autopilot safety.

 

[MacRocket]

FUD Alert!!!

Come on folks. Earnings is over.

Let’s all pop over to twitter and have some fun fighting FUD with facts.

Let’s see if we can pop the share price too.
My retirement is relying on it.

 

[brian45011]

I cannot believe this call...

This guy is Chairman and CEO of a 50B+ company. He's taken like 7-8 questions from a YouTuber? While scolding press and real investors?

What will Cramer the Clown say in the AM?

 

[sdtslafan]

Tesla beats expectations with $3.4 billion in revenue

Beat is a beat. Great job Tesla! Share price will recover...possibly very soon.

 

[ChrisH]

I think that by morning the ridiculous dip will be gone. I think TSLA will close green tomorrow (although that depends on macros to a degree). I bought 1500 shares after hours at $287.05. Long term free money! Short term... we'll see.

$430,000?

 

[copyhacker]

Short term day trading can no longer effect Tesla's borrowing capacity because Tesla now has no need to borrow. I think Elon is heavily motivated to solve Model 3 ramp for the very reason that he never has to succumb to short term Wall Street manipulation again once he reaches 5,000 per week.

If you subscribe to the notion that the change in tone was somewhat premeditated (and it’s a big if, but I’ll play along), then Elon must be extremely confident that production hell is almost over and Tesla is no longer dependent on Wall Street. Fits with the leaked email and the talk of profitability and day traders.