TSLA Market Action: 2018 Investor Roundtable

[Ulmo]

Tesla does not intend to raise equity or debt; current operating plan is to pay off debt, reduce debt load, reduce overall leverage of company, and not renew the debt.

 

[tivoboy]

That’s not what I heard. 7k will be easy to reach, with minimal capex. And JB said that batteries are no longer a bottleneck for the cars, only for energy.

Are we debating the difference between the word SOME and MINIMAL? I find minimal, in the world of 1+B to build a factory, to probably mean in the 50-150M range. Maybe it's 10,000, but I doubt it. As for batteries, didn't they talk about new lines coming "on line", will that take some time? Is there NO constraint for batteries at this point? If there isn't whey the heck aren't they producing 5-6K cars a week NOW?

 

[omarsultan]

operating plan is to pay of debt, not renegotiate it
no plans for outside capital (debt or equity)

 

[Todd Burch]

Not just shipping costs, the much bigger gain is tariffs: in China they avoid 40% import tariffs, in Europe they avoid 10% import tariffs.

Very good point.

 

[SOULPEDL]

Spend capex smartly: 7k-8k/week possible with minimal capex, and get the Chinese Gigafactory going - which gets combined output to 12k-13k/week.

Correct, move on to new factories. Margins are fine!

 

[tivoboy]

Does not intend to raise debt nor equity

"not now" at least.

 

[Sparky4life]

$75M dollars of product per day!

 

[Ulmo]

The time to get car from built to delivered was 30 days in August, was reduced to 20 days, goal is <10 days (USA). Then next goal is under 7 days worldwide.

Wants to reduce supply chain parts inventory at factory so that working capital is increased. That profoundly changes financial effectiveness of Tesla. Also said having faster car delivery profoundly changes financials of company.

 

[electracity]

He said worldwide M3 demand is guessed at 500K to a million.

 

[Johann Koeber]

It takes 30 days to get a car from the factory to the customer? Are they kidding? Most of the customers were in California.

Ok, Elon will improve to 10 days, which is really good.

 

[Cherry Wine]

I'm very impressed with the way the stock price has held throughout this call. Interesting to see what tomorrow will bring.

 

[MXWing]

So far so good Elon... when Goldman Ballsachs comes on..please dont lose it. Please don't.

 

[sweter]

2019 can't come soon enough...

 

[ls7corvete]

What I'm hearing is they are planning to make 12k-18k/week M3 longer term. I'd never heard larger than 10k/wk. That's bullish. And making them in EU/China is better, as shipping costs will be lower.

With all the tarrif stuff going on, shift focus on China instead of 7k->10k sounds like a smart move.

 

[tti_7]

Will compete against Uber and Lyft

So much for that big Uber IPO... perhaps deflated now.

 

[tivoboy]

It's really pretty amazing that the stock hasn't move a nickel during the entire call. It's not held, is it?

 

[tivoboy]

So much for that big Uber IPO... perhaps deflated now.

There will be no competing with uber and lyft for quite a while. at least 3-5 years IMHO.

 

[Sparky4life]

It's really pretty amazing that the stock hasn't move a nickel during the entire call. It's not held, is it?

I was wondering the same thing. Is everyone glued to the call??

 

[emir-t]

Please, please have Tesla shorts as merchandise in stores worldwide. I'd wear them everywhere.

 

[Ulmo]

Deepak reiterates what he's said before about opex discipline and increase of efficiencies with ramp up and refinement.