What's your take on Tesla?
Discussion
Watch this illuminating short video on the future of Tesla between two analysts with differing viewpoints:
https://www.youtube.com/watch?v=3Hcfzv5dl1Y
The cynic makes some good points about cashflow (burning cash) and consistently missing targets.
In contrast, the optimist compares Tesla to that of early Amazon. His point being that early Amazon was 'unprofitable' for a long time, but it was investing everything to carve out a new industry, become a leading pioneer... hence it's share price today.
I like the Amazon metaphor... but I do wonder if that could apply for Tesla. The big car manufacturers (competition) are already beginning to tickle their market with electric automobiles. Think Chevrolet Bolt, Jaguar I-pace etc
What do you think - would you buy Tesla shares?
https://www.youtube.com/watch?v=3Hcfzv5dl1Y
The cynic makes some good points about cashflow (burning cash) and consistently missing targets.
In contrast, the optimist compares Tesla to that of early Amazon. His point being that early Amazon was 'unprofitable' for a long time, but it was investing everything to carve out a new industry, become a leading pioneer... hence it's share price today.
I like the Amazon metaphor... but I do wonder if that could apply for Tesla. The big car manufacturers (competition) are already beginning to tickle their market with electric automobiles. Think Chevrolet Bolt, Jaguar I-pace etc
What do you think - would you buy Tesla shares?
Edited by JaredVannett on Sunday 22 July 23:08
Interesting thoughts.
The point about Tesla having an apple type fanbase is a great point... maybe it's worth considering 'brand' value.
Also, the silicon valley narrative probably gives them the edge. Examples include, first to put in a massive 'ipad' in the dash which companies like Volvo now include in some of their vehicles. Also the ability of over the air updates akin to mobile phone OS updates.
As already mentioned, maybe the endgame is to license out some of these features when the big boys arrive, and move away from vehicle production.
The point about Tesla having an apple type fanbase is a great point... maybe it's worth considering 'brand' value.
Also, the silicon valley narrative probably gives them the edge. Examples include, first to put in a massive 'ipad' in the dash which companies like Volvo now include in some of their vehicles. Also the ability of over the air updates akin to mobile phone OS updates.
As already mentioned, maybe the endgame is to license out some of these features when the big boys arrive, and move away from vehicle production.
Trevor555 said:
Edit, sorry I misunderstood your question, stock, as in shares I presume. Silly me...
Changed it to 'shares' now anyway Heres Johnny said:
There's a market for one driver, its not exactly main stream. They're not going to add approx half a ton of batteries to give just you a 1000 mile range
Secondly - a 1000 mile range on current performance would equate to something like a 300kwh battery. Home charging at a typical 7kw would take about 2 days - so its not really practical in that sense either.
It does make me wonder, decades from now if and when full EV becomes mainstream, the demands that will be placed on the energy grid.Secondly - a 1000 mile range on current performance would equate to something like a 300kwh battery. Home charging at a typical 7kw would take about 2 days - so its not really practical in that sense either.
eg. Bob, Sue, Mary all arrive home from their 9-5 job, plug in the car charger etc.
Clearly we'll need to build more nuclear plants, no? ... I guess China can build a few for us
ruggedscotty said:
electric is the future no hybrids or hydrogen. pure electric. and it will happen sooner than we imagine. governments are desperate to get rid of fossil fuel. the market for electric cars is immense as once people start to see the real cost of running one they will be desperate to get on the bandwagon.
[put's on tin foil hat]What does the oil industry think of this? I mean sure, most of them have some small form of exposure to renewables, but their bread and butter is selling black gold. Given, many of them have influence over governments (party sponsors), I find it hard to believe they'll sit back and allow the electric revolution to take off so easily... conflict of interest?
DonkeyApple said:
Very interesting announcement last night re Tesla:
‘Shares in the electric carmaker jumped 10pc in after-hours trading this evening after Tesla said it could be "sustainably profitable" by the end of the year.
It reported a loss of $742m (£565m) for the three months to June 30, slightly down on its previous numbers. However, revenues rose to $4bn in the three months to June 30, up from $2.7bn, and its negative free cash flow came in at around $160m below analyst expectations, at $740m, as it burned much less cash than in recent quarters.
Tesla ended the second quarter with $2.2bn in cash, and said it expects this to grow in both its third and fourth quarters.
Going into the results, analysts had suggested it would need to raise additional funds before the end of the year, given the amount it was investing into production, with some predicting it would need up to $3bn.’
If they can achieve their 10k cars a week and don’t need to raise any more money then they are into the next phase.
Indeed, video recap here: https://www.youtube.com/watch?v=99FURfX4aKw‘Shares in the electric carmaker jumped 10pc in after-hours trading this evening after Tesla said it could be "sustainably profitable" by the end of the year.
It reported a loss of $742m (£565m) for the three months to June 30, slightly down on its previous numbers. However, revenues rose to $4bn in the three months to June 30, up from $2.7bn, and its negative free cash flow came in at around $160m below analyst expectations, at $740m, as it burned much less cash than in recent quarters.
Tesla ended the second quarter with $2.2bn in cash, and said it expects this to grow in both its third and fourth quarters.
Going into the results, analysts had suggested it would need to raise additional funds before the end of the year, given the amount it was investing into production, with some predicting it would need up to $3bn.’
If they can achieve their 10k cars a week and don’t need to raise any more money then they are into the next phase.
Jon39 said:
The rules will differ between USA and UK, but I was surprised that a director of a publicly quoted company, makes a market moving statement openly on social media, before formally announcing to the exchange.
If a FTSE 100 CEO did that, there would be trouble.
Is it allowed in the US?
As a side note, who had the authority to suspend TSLA yesterday - the exchange?
pssst... Donkey has a massive short on TSLA!
just kidding
Really interesting hearing differing points of view, all of them give something to ponder over.
On the question of batteries, I wondered how easily they're recycled vs what is wasted?
Seems pretty straightforward according to this: https://www.batterysolutions.com/recycling-informa...
just kidding
Really interesting hearing differing points of view, all of them give something to ponder over.
On the question of batteries, I wondered how easily they're recycled vs what is wasted?
Seems pretty straightforward according to this: https://www.batterysolutions.com/recycling-informa...
Short interview with Elon on a tech channel regarding Tesla.
https://www.youtube.com/watch?v=MevKTPN4ozw
https://www.youtube.com/watch?v=MevKTPN4ozw
mikebradford said:
Could it be his actions are deliberate?
Driving down share price such that he or his associates can gain more shares at effectively a discounted rate.
I don't know, but his appearance on Joe Rogan wasn't because "it would be fun" imo.Driving down share price such that he or his associates can gain more shares at effectively a discounted rate.
JR podcasts are excellent, if you enjoyed watching the Elon interview you should check out the JR podcasts with 'Peter Schiff', a stock broker providing commentary on finance and the world economy.
Heres Johnny said:
The conspiracy theorists would have you believe Musk is trying to get banned, He would then walk away from Tesla saying he was pushed, not his doing.
Meanwhile, there's more noise about the finances not looking good despite sales, but they took in what looks like at least a thousand cars in part ex in Sept to help hit the MSMX numbers, they've just dropped a thousand more unsold inventory into Holland, and the M3 wait list is relatively short.
If they can't make substantial operating profits last quarter at a time when production is all but at capacity and they're selling the most profitable models, when will they?
So if he is seeing the writing on the wall, and if he wants out, this is probably his best way. Be banned, be pissed off, your loyal fans feel sorry for you, you cash out a couple or 3 Billion to move into other projects and watch the Tesla world fall apart or consumed by others. Much better than hanging on and end up with nothing.
Makes me wonder if the whole thing could be DeLorean "the next generation".Meanwhile, there's more noise about the finances not looking good despite sales, but they took in what looks like at least a thousand cars in part ex in Sept to help hit the MSMX numbers, they've just dropped a thousand more unsold inventory into Holland, and the M3 wait list is relatively short.
If they can't make substantial operating profits last quarter at a time when production is all but at capacity and they're selling the most profitable models, when will they?
So if he is seeing the writing on the wall, and if he wants out, this is probably his best way. Be banned, be pissed off, your loyal fans feel sorry for you, you cash out a couple or 3 Billion to move into other projects and watch the Tesla world fall apart or consumed by others. Much better than hanging on and end up with nothing.
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