TSLA Market Action: 2018 Investor Roundtable

[EVNow]

Tesla Slams Report That China Sales Plummeted Last Month

In a statement to Fortune on Tuesday, a Tesla spokesperson called the report “wildly inaccurate” and said that the company does “not disclose regional or monthly sales numbers.” However, the association’s claim that Tesla only sold 211 cars in China last month is “off by a significant margin,” the spokesperson added.

Looks like the Market ignored Tesla comment. It is down (2%) - even as NASDAQ is green.

 

[Fact Checking]

The company still has to pay the 50,000/100,000€ for the car first, but it can reduce the taxes it pays.

In Germany income inequality isn't as extreme as in the U.S., and meaningful amounts of stock compensation is the exception, not the norm.

Healthcare is universal and has pretty high standards, so there's a smaller pool of perks that come with employment - corporate cars being an important one.

So the purchase price does not matter much to the user of the car (who often has influence on the model bought - this is a perk/benefit after all) other than it being within the approved range.

The monthly "personal use" tax matters a lot, because it attaches to the employee, not the firm, and firms cannot reimburse this tax directly.

So for example if for a larger firm the purchase limit for that position is €55,000, employees will normally try to max out that purchase.

The tax incentive will increase net salary by €275 per month instead of €550 - a 7% effective raise if net salary is €4,000.

As a result I expect 90%+ of the German corporate car sales to shift to hybrids and BEVs.

 

[EVNow]

With citizen united they don't know who's behind the message they are receiving.

Doesn't matter. As long as he has Fox News and Senate Republicans on his side he is safe. Republicans are absolutely terrified of him - he is now the dictator of GOP. Fox News is going to stick with him until the bitter end.

BTW, Trump can slam (with or preferably without any evidence) that any negative ads against him are done by the crooked west coast rich guys.

 

[Earlian]

In Germany income inequality isn't as extreme as in the U.S., and meaningful amounts of stock compensation is the exception, not the norm.

Healthcare is universal and has pretty high standards, so there's a smaller pool of perks that come with employment - corporate cars being an important one.

So the purchase price does not matter much to the user of the car (who often has influence on the model bought - this is a perk/benefit after all) other than it being within the approved range.

The monthly "personal use" tax matters a lot, because it attaches to the employee, not the firm, and firms cannot reimburse this tax directly.

So for example if for a larger firm the purchase limit for that position is €55,000, employees will normally try to max out that purchase.

The tax incentive will increase net salary by €275 per month instead of €550 - a 7% effective raise if net salary is €4,000.

As a result I expect 90%+ of the German corporate car sales to shift to hybrids and BEVs.

One should emphasize, that most companies have limited selection for “allowed” cars, manufacturers, brand and size.

And as of today Tesla is rarely on that lists. Sure German companies that have German customers among the automotive supply chain do favor vw, bmw and MB.

So, yes, this is huge and a lot employees will consider a hybrid or ev next year, but I don’t expect a major impact on Tesla sales from the start, as long as Tesla Germany don’t speek with the fleet managers in advance.

 

[anthonyj]

I don’t even know what to say about this price action

 

[AlexS]

Looks like the Market ignored Tesla comment. It is down (2%) - even as NASDAQ is green.

I think we need article to hit yahoo finance news board, then we will see if we get some reaction.

ED: ok, it is already there for some time, didn't see it at first

 

[HG Wells]

I don’t even know what to say about this price action

Perhaps the ritual morning dip has returned?

 

[McMountain]

In Germany income inequality isn't as extreme as in the U.S., and meaningful amounts of stock compensation is the exception, not the norm.

Healthcare is universal and has pretty high standards, so there's a smaller pool of perks that come with employment - corporate cars being an important one.

So the purchase price does not matter much to the user of the car (who often has influence on the model bought - this is a perk/benefit after all) other than it being within the approved range.

The monthly "personal use" tax matters a lot, because it attaches to the employee, not the firm, and firms cannot reimburse this tax directly.

So for example if for a larger firm the purchase limit for that position is €55,000, employees will normally try to max out that purchase.

The tax incentive will increase net salary by €275 per month instead of €550 - a 7% effective raise if net salary is €4,000.

As a result I expect 90%+ of the German corporate car sales to shift to hybrids and BEVs.

The last sentence may be a bit optimistic. The tax situation has been similar to the German regulation in Austria for the last three years ("Sachbezug"), and we have definitely not seen a 90% shift to EVs as corporate cars.

I have a nice Excel, though, that shows that if I hold my 110.000,- € Tesla for eight years it will be cheaper (to me) than a 60.000,- € fully loaded Mercedes C class.

The Tesla is cheaper for the company on top of that.

 

[KarenRei]

Down doobie doo down down, comma comma comma...

 

[j6Lpi429@3j]

Am I mad to expect a big SP jump once November EV sales figures are out? I know some people will just assume October was a fluke...

 

[EVNow]

Perhaps the ritual morning dip has returned?

That's my take - shorts taking advantage of the negative China report, despite Tesla's denial. Down $10.

 

[AlexS]

Am I mad to expect a big SP jump once November EV sales figures are out? I know some people will just assume October was a fluke...

I guess so if M3 number is 22 000 or higher

 

[Right_Said_Fred]

Schizofrenic market (or manic depressive, as Elon phrased it)

 

[Artful Dodger]

I don’t even know what to say about this price action

WSJ*: "Everything is bad news".

*We Sell Junk

 

[OnBass]

Good point.

And if Tesla were to consider buying a GM plant in Michigan, as part of the deal the state may have to allow Tesla stores and service centers.

This please and thanks!

 

[AWDtsla]

That's my take - shorts taking advantage of the negative China report, despite Tesla's denial. Down $10.

According to IB, 500,000 shares became available for shorting this morning, likely meaning shorts covered. Is this another one for market manipulation thread? Have your buddies spin a story so you can cover?

 

[anthonyj]

Have $100k ready to buy at the inevitable 330

 

[anthonyj]

According to IB, 500,000 shares became available for shorting this morning, likely meaning shorts covered. Is this another one for market manipulation thread? Have your buddies spin a story so you can cover?

This has been my theory. Manipulate downward, trick retail bear cubs into shorting, then grizzly bears cover

 

[Artful Dodger]

One should emphasize, that most companies have limited selection for “allowed” cars, manufacturers, brand and size.

And as of today Tesla is rarely on that lists. Sure German companies that have German customers among the automotive supply chain do favor vw, bmw and MB.

So, yes, this is huge and a lot employees will consider a hybrid or ev next year, but I don’t expect a major impact on Tesla sales from the start, as long as Tesla Germany don’t speek with the fleet managers in advance.

Dear Tesla Germany: Please speek with the fleet managers in advance. Danke.

 

[Zaxxon]

VICKI SALVADOR on Twitter