TSLA Market Action: 2018 Investor Roundtable

[The Blue Owl]

More from Musk:

“Given that Tesla has never made an annual profit in the almost 15 years since we have existed, profit is obviously not what motivates us,” Musk wrote. “What drives us is our mission to accelerate the world’s transition to sustainable, clean energy, but we will never achieve that mission unless we eventually demonstrate that we can be sustainably profitable. That is a valid and fair criticism of Tesla’s history to date.
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CNBC's comments, as I'm typing, are pointing out the positive aspects of this.

 

[CuriousSunbird]

Hi guys. Quick question. If you ordered the Full Self Driving option, can you cancel that without penalty after you received the car?

 

[MP3Mike]

Hi guys. Quick question. If you ordered the Full Self Driving option, can you cancel that without penalty after you received the car?

Nope, there are no take-backs on EAP or FSD.

 

[MXWing]

Cash burn of $7280 per minute compared to $8000 per minute is positive step, no?

 

[The Blue Owl]

Elon tweets the letter he sent to employees about the layoffs.

 

[Dwdnjck]

I was wondering how I was going to pay for that next gen roadster! LOL!

Dan

Me too!

 

[RobStark]

According to Phil LeBeau Tesla has 47k employees. I thought it was currently 37k.

After the layoffs there should be just under 43k employees. And Tesla delivered just under 30k cars last quarter.

 

[Curt Renz]

This is a result of the long-announced re-structuring. It's removing dead-wood, this should be a catalyst for the SP...

Layoffs = good since this is them getting rid of deadwood so that they can be profitable in the next two qtrs.

Indeed, Elon is separating the wheat from the chaff. We had already been forewarned of this. The plan appears to be to maintain full production capabilities by not eliminating factory workers, while cutting white collar costs. Those salaried workers who were carrying most of the load will be retained, while those in unnecessary positions or outright slackers will be gone. This allows for a continued speedy ramp in production, while letting Wall Street and other investors know that profits will be more of a focus than they had been.

It's actually good news for investors, but as might be expected we get knee-jerk reactions from algobots and others who just read headlines without fully ascertaining the underlying implications. Of course there are short sellers who see only the dark side of any Tesla news. These quick reactors may have presented us with a second wind of opportunity. Let's not be surprised if this news soon results in analyst upgrades.

 

[hobbes]

I´ve been in this situation before: contemplating both selling a bit (stock has risen so much in the last few days) and buying more (this is just the beginning, more to come when the new line is fully operational+they don´t have to hold back any more to stay below 200,00)+possibly being profitable in Q3. So I guess I´ll just hold as usually .

 

[MXWing]

And 9000 employees need to be hired in Shanghai.

Why is this negative news?

 

[EarlyAdopter]

I'd say the layoffs, while painful for those affected, sets the stage for profitability in Q3. It's clear they are pulling out all the stops to make this happen. Q3 profit is really happening.

 

[dmvevguy]

Anyone have any guesses on how much this pull back will be? I have a lot of dry powder and thinking of getting in but I accumulated heavily in the 200s...just waiting to get back in for the action!

 

[EarlyAdopter]

Anyone have any guesses on how much this pull back will be? I have a lot of dry powder and thinking of getting in but I accumulated heavily in the 200s...just waiting to get back in for the action!

Need to see if the low from this morning holds, at $338.

 

[CuriousSunbird]

Nope, there are no take-backs on EAP or FSD.

thanks

 

[CuriousSunbird]

I'd say the layoffs, while painful for those affected, sets the stage for profitability in Q3. It's clear they are pulling out all the stops to make this happen. Q3 profit is really happening.

Yes, they need to get the severance into Q2, but with almost 3 weeks to go, that shouldn't be hard.

 

[bdy0627]

Need to see if the low from this morning holds, at $338.

What's the next likely support if it doesn't?

 

[justvisiting]

Couldn't resist, found some change down the back of the sofa and just bought 14 @ 351

Kinda kicking myself for not doing this a couple of days back...

great call!

 

[EVMeister]

great call!

For those with a long term horizon, who can see beyond now and the immediate future. Probably correct.

 

[dmvevguy]

Need to see if the low from this morning holds, at $338.

Seems as if it's holding. I'm debating to pull the trigger...may wait until tomorrow. I don't think this is bad news at all...I have a buddy who's brother was a robotics programmer at Fremont who just got fired b/c he was a contractor and didn't want to convert into an employee. I think Elon is doing the right thing here and getting rid of his bad performing employees.

 

[sundaymorning]

Elon tweets the letter he sent to employees about the layoffs.



View attachment 309062

Brace yourself for the incoming FUD, longs. Time to hunker down and get back to the twitter war. If shorting looked good at $290, it’s going to look good now with this news and SP at $340s.