He’s now moved on to selling these
Handy for burning the piles of money
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That’s the cash burn not losses. They will turn a profit in Q3 and Q4 of this year.
Some of the news stories about Tesla are ridiculous. It’s an exciting company and it generates clicks so you have the media generating stories out of nothing about them. Google Tesla+crash and look how many stories come up. Last week you had the venerable New York Post berating Tesla after two teenagers had died in a Model S after crashing in a 30mph zone even though data had showed they were travelling at 116mph three seconds before the crash. You would probably need to go through seven or eight sources on the story to find that information though.
There are a lot of things wrong with Tesla like how they have been so slow to ramp up Model 3 production and how sensitive Musk is to criticism but there are a lot of very wealthy individuals and corporations who have a vested interest in ensuring we don’t migrate to electric vehicles for a good few years yet so I’d take most Tesla stories with a grain of salt.
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Burning through approx 1bn a quarter with only 2.4bn of cash left to hand.
His revolutionary production system has transpired to woefully inefficient and they spent multiple of man hours per car compared to real car makers. The party is over.
Musk projected they would make a profit in Q3 & Q4 based on achieving production of 5,000 cars a week. He staked his reputation on hitting that figure by around now and they did manage it to much fanfare at the start of this month.
However Bloomberg are doing some really good monitoring on this and you can see production basically fell off a cliff in advance of that week and slipped again after.
So were they half building cars in the week before so they could claim they finished them the week after or was the 5,000 a one off push that is unsustainable?
https://www.bloomberg.com/graphics/2018-tesla-tracker/
Most analysts do not believe they’ll make their Q3 profitability targets. They are squeezing suppliers now for discounts to try and make it happen but that’s not very sustainable either.
Also Musk is a fucking clown who has got completely carried away on a cloud of his own hype.
Renault-Nissan has a lower market valuation and already sells more electric cars than Tesla, can produce more electric cars than Tesla, consistently turns a multi billion dollar profit and has a huge array of other non electric vehicle based income streams.
It also pays a dividend yield of about 4% while Tesla just continually waters down your holding with stock issuance and debt raises. The fact that the market somehow thinks Tesla is more valuable than Nissan is evidence enough that the efficient market hypothesis is absolute rubbish.
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He lived the dream though with Amber Heard.
@TreatyStones is the forum expert on Tesla having listened to a lady talking to Pat Kenny about them for 5 minutes this morning. In fairness to him he is repeating it back verbatim
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Tesla are fucked. The time to own the stock was during their hype phase which ended once they tried to become a mass market producer. They’re making cars in a tent in Fremont FFS. They have also lost a load of senior executives, Elon is an absolute bastard to work for apparently.
The model 3 is an ugly pos and will be destroyed by manufacturers who know how to mass produce cars, the higher end models will be destroyed by BMW and the new Jaguar iPace.
The EU ruling has really hurt Google. Alphabet up 5% this morning as Google earnings smash expectations. There is simply no stopping the bastards.
I’ve been a Tesla sceptic since @Julio_Geordio told me to be one. Their woes have been all over the media in recent days.
Musk is a wanker. Fuck him.
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Tesla are like Nokia. Created a market and a buzz. However unlike Nokia Tesla will be killed by companies with centuries of automobile manufacturing and selling expertise pivoting towards EV.
Breaking them up ala the oils and railway monopolies of late 19th century is coming.
FB being absolutely decimated afterhours, down 20%.
Buy the dip…,
Don’t catch a falling knife.
Is Instagram rolled into the FB share price?
Yes.
Nine Facebook executives have dumped $4B in stock since the Cambridge Analytics scandal in March, Zuckerberg dumped over $3B of that.
Follow the insiders.
Not a good time to be in social media stocks, Twitter now also down 20%.
Has the bubble burst?