Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable

[strago13]

With interest rates this high and the possibility that Tesla might have to reduce prices to spur demand and volume - wouldn’t it be best for Tesla to start providing their own financing?

Throw in free auto pilot with Tesla financing at competitive rates and you’ll get more business
+ bundle vehicle insurance when possible as well

20B cash- some of it put to good use

Tesla already does this for solar as our solar loan is with Tesla.

 

[Paracelsus]

With interest rates this high and the possibility that Tesla might have to reduce prices to spur demand and volume - wouldn’t it be best for Tesla to start providing their own financing?

Throw in free auto pilot with Tesla financing at competitive rates and you’ll get more business
+ bundle vehicle insurance when possible as well

20B cash- some of it put to good use

This makes sense on many levels @elasalle - to include that Tesla uses JPMorgan Chase to finance new vehicles (which I found a bit shocking when we purchased our Plaid).

Plenty of comments over the years on TMC regarding JPMorgan’s ‘analysis’ of Tesla and it’s stock price, and of course JPMorgan’s consistent presence in the news regarding it’s ranking as one of the top fossil fuel lenders worldwide should be reason enough for Tesla to justify furthering its efforts towards a more sustainable planet by providing its own lending. And if ‘inflation proofing’ some of their assets was still a priority, Tesla could arguably do so much more securely with a lending program instead of purchasing Bitcoin, particularly with lending rates that are now much higher than in recent years.

The world’s biggest banks have pumped trillions into fossil fuel projects in the past 5 years

The four biggest offenders were all American banks.

www.vox.com

Tesla says JPMorgan is suing the car maker because the bank's top executives hate Elon Musk | Business Insider India

JPMorgan sued Tesla for $162 million last year, alleging breach of contract. Tesla says JPM executives' "animus" towards Elon Musk is really to blame.

www.businessinsider.in

 

[Artful Dodger]

the part about giving preference to volumes over margins was new, but that's probably not "material"

That part is actually not new. It's is a reiteration of a statement Elon made on an earnings call back in about 2018. The question from an analyst was would Tesla favor volume over profitability. Elon said in that case, Tesla would favor higher volume over higher profits.

This is consistent with the Mission and will crush the competition (who will be sorry they came to Mudville).

EDIT: It was Elon's reply to a question from Toni Sacconaghi on the 2018 Q4 Earnings Call (transcript below)

Tesla, Inc. (TSLA) CEO Elon Musk on Q4 2018 Results - Earnings Call Transcript | Seeking Alpha

Toni Sacconaghi

Okay. And as you think about 2019, you talked about sort of scenarios for demand and how you plan to roll out the intermediate range and then ultimately the standard range. What is - if you do have to make a trade-off on volume or profitability during the course of the year, meaning to get the volume you need or you think you can deliver, you have to go to lower margins or vice versa, where's the trade-off? Is - are units produced most important to you? Or is delivering the 25% gross margin more important? So if you have a chance to deliver 450,000 or 500,000 cars but they'll be more standard editions and gross margins will end the year at 20%, is that - are you willing to make that trade-off?​

​

Elon Musk

My guess is it ends up being sort of about the 6.5 [does together] where if there's a given amount of free cash flow, you sort of decide - you decide to achieve that with a smaller production or smaller volume of cars or at a higher margin or large volume cars at a smaller margin. I think we're already towards the second. We're going to make more cars at a lower margin, but I think it's more or less a flat rate.​

 

[MABMAB]

When I stumble in my conviction of either Tesla or TSLA, a good old chat session with the man allays all my fears. HODLing through this pain best I can.

Absent MP3, an other good thing to go back to would be battery day presentation where they lay out there thoughts of where things need to be.

 

[Artful Dodger]

I suspect there's quite a few employees or even executives at Tesla that keep eyes on this thread.

Elon at least still seems to be reading my feed... just so he can mock me:

The Limiting Factor on Twitter: "22) The Tesla team is kicking ass and firing on all cylinders. The execution of the company is outstanding." / Twitter​

Wo hell. Pobody's nerfect...

Cheers!

 

[The Accountant]

$7,500 incentive offered by Tesla 2 days ago generates immediate drop in available inventory.
Inflation Reduction Act (IRA) tax credit of $7,500 arrives Jan 1st.
Is this a signal on the demand the IRA will bring?

 

[amolina]

Low risk longer horizon
Jan 25 100 puts for like $25
So like 12.5% return if not assigned
If assigned you bought Tesla for 75$

Also you will have a long time till assignment and can come up with the money

If SP bounces up these might not loose value as quickly…
But good option …

Want risk then buying a call might do wonders if SP goes up

Combo…
Think you are buying SP for 100$, but sell the 100 strike PUT
Then take the $25 premium and buy Jan 25 call

Shorter term options if looking for quicker wins but need to be more nimble and more knowledgeable with options….

Thank you so much for your response. Yes I would play around with combinations

 

[Buckminster]

I'm sure the comment about Tesla lowering prices to increase demand, to the point of negative margins, will be plastered all over the news for the week as a negative and the SP will go lower. But in reality, it should be the largest "Oh Sh!t" moment for every other automaker on the planet, because if Tesla lowers prices to the point of no profit, every other automaker will have no way to match them and compete without going bankrupt very fast!

Can Tesla reduce costs almost in-line with prices? Berlin and Austin will make more cost effective vehicles. "Highland" M3s will be also.

Temporary $7500 reduction, 1000 miles free supercharging, IRA, 30 days free autopilot all having an affect.

For end of year, Tesla are practically telling buyers to turn up with a wedge of cash and take it away. Minimizing sales people's time / sale is crucial.

 

[CYBRTRK420]

Is this a signal on the demand the IRA will bring?

Yes, that is exactly what it is. Now imagine Tesla will be able to massively improve margins on the Model 3 by introducing cheaper manufacturing techniques with Project Highland. This will be EPIC! I

 

[Nakata]

Shanghai still seems busy.

 

[Artful Dodger]

SHORTSVILLE TIMES:

Shortsville, NY, USA / Local Time
4:30 a.m.
Friday, December 23, 2022 Time in Shortsville, NY, USA

 

[Artful Dodger]

Temporary $7500 reduction, 1000 miles free supercharging, IRA, 30 days free autopilot all having an affect.

10,000 miles

 

[15Peter20]

I suspect there's quite a few employees or even executives at Tesla that keep eyes on this thread.

In 2015, when my Model S was in for repairs, I posted something in a Model S thread and got a call about it from the service center within an hour.

My auto wipers suck and are dangerous.

(starts stopwatch).

 

[Singuy]

Covid is hitting China hard

Bloomberg - Are you a robot?

 

[rikkert]

Shanghai still seems busy.

Yes, although Wu Wa reports that they appear to have slowed down production:

https://twitter.com/x/status/1606272113459228672

 

[trayloader]

Tesla gives owners a free 30-day trial of Enhanced Autopilot for the holidays

Tesla owners are starting to receive messages on their cars offering a free 30-day trial of Enhanced Autopilot, with the...

electrek.co

I sometimes think Elon reads this thread and forwards good remarks to his executives

Absolutely.
Too many accidentialities over the last weeks. Maybe he´s even posting here.



One little thing go me worried, but maybe it was a misunderstanding.
Listen closely, what does Herr Musk imply there. I set the marker where it starts:

"...You´ll get sort of automotive demand almost anywhere in the world...it´s PROBLEMATIC almost anywhere in the world, and not everywhere (sic!) does care about my political comments... though.. I really think that is of minor impact..."


Experts- what is Your take on this?

 

[Artful Dodger]

Personal Income and Outlays, November 2022 | U.S. Bureau of Economic Analysis (BEA)

Personal Income and Outlays, November 2022 | U.S. Bureau of Economic Analysis (BEA)

Personal income increased $80.1 billion (0.4 percent) in November, according to estimates released today by the Bureau of Economic Analysis (tables 3 and 5). Disposable personal income (DPI) increased $68.6 billion (0.4 percent) and personal consumption expenditures (PCE) increased $19.8 billion...

www.bea.gov

Highlights:

• PCE index shows annualized U.S. inflation rate falling to 5.5% in November
• U.S. durable-goods orders dropped 2.1% in November

 

[ThisStockGood]

/s

 

[Stretch2727]

PCE Inflation index looks pretty good. This is the inflation index the FED officially uses to gauge inflation.

0.1% for November, 0.2% excluding Food and Energy. Approx 5.0% over the last year but the monthly number is just 1-2% annualized.

Personal Income and Outlays, November 2022 | U.S. Bureau of Economic Analysis (BEA)

Personal income increased $80.1 billion (0.4 percent) in November, according to estimates released today by the Bureau of Economic Analysis (tables 3 and 5). Disposable personal income (DPI) increased $68.6 billion (0.4 percent) and personal consumption expenditures (PCE) increased $19.8 billion...

www.bea.gov

 

[sunwarriors]

I know people are upset that the share price is going down...but did anyone seriously think that the company was really worth that much?

Stocks are always a view into their future growth and it's not how much it's worth "now". You see this when companies raise/lower guidance and their stocks move accordingly talking about the future. It's rarely about the now.

With it cratering more than most other things, there is now certainly a view (the proof is in the stock tanking more than others) that it's future value as a stock/company compared to other things is down and it's future is not as bright as viewed by investors.

This said, if it was that easy to predict what stocks were going to do, everyone would be a multi-billionaire. I still think the competition and generally desireability (Tesla really had no real competition since their existence) is changing now. Musk isn't helping. The EV market has more options and you see more other EVs on the road now.

As inferior as everything else that Tesla fan bois like to claim anything else is, there are quite a lot of folks buying inferior stuff right now.

I'm sure anyone who just bought a M3/MY before December are feeling pretty bad missing out on the $7500. There are talks on this board that they may cut prices further which may put pressure/delays on sales if people think you're going to cut prices (like in China) to protect market share and not stop supply/production (which Tesla says there is no demand issue).