Tesla

[r0tor]

It was pretty much expected which is why the stock price has already sank YTD but didn't move on the news... Sales were pushed into Q4 for incentives and Q1 isn't exactly the time of year to sell RWD sedans

[12,000 RPM]

RWD seasonality is no different from the rest of the industry

[r0tor]

RWD seasonality is no different from the rest of the industry

.. which is fairly well known so?

[GoCougs]

It was pretty much expected which is why the stock price has already sank YTD but didn't move on the news... Sales were pushed into Q4 for incentives and Q1 isn't exactly the time of year to sell RWD sedans

Huh? All Tesla vehicles are available in AWD, and Tesla offers an SUV (Model X).

[r0tor]

Huh? All Tesla vehicles are available in AWD, and Tesla offers an SUV (Model X).

AWD requires dual motor option which increases the price dramatically

[12,000 RPM]

.. which is fairly well known so?

So the suggestion that "Q1 isn't exactly the time of year to sell RWD sedans" is BS. All its good selling competitors do fine year round

[giant_mtb]

I didn't realize the AWD versions was FOURTEEN THOUSAND DOLLARS extra.

[r0tor]

So the suggestion that "Q1 isn't exactly the time of year to sell RWD sedans" is BS. All its good selling competitors do fine year round

Sure, Ford selling 30-50% less mustangs in January then June pretty much every year for the last half century is just random numbers...

[12,000 RPM]

Sure, Ford selling 30-50% less mustangs in January then June pretty much every year for the last half century is just random numbers...

Yes, Mustang sales in the context of a discussion about Model 3 sales are indeed random and irrelevant. They are not competitors.

The incentives were a factor; drive wheels weren't. Especially when you consider that most Model 3 sales are on the west coast, where RWD killing weather is a non factor. We're done here

[Char]

Not looking good for Tesla. I hope GM buys them though.

[GoCougs]

Sure, Ford selling 30-50% less mustangs in January then June pretty much every year for the last half century is just random numbers...

what is going on here

[CaminoRacer]

Don't worry guys, they're gonna make a leaf blower.

Also Elon dissed Dwight.

[Eye of the Tiger]

Don't worry guys, they're gonna make a leaf blower.

Also Elon dissed Dwight.

I thought Dyson was making the leaf blower.

[giant_mtb]

Don't worry guys, they're gonna make a leaf blower.

Also Elon dissed Dwight.

Like...Dwight Schrute?  Where's this Musk guy.  Let me at 'em.

[GoCougs]

It was pretty much expected which is why the stock price has already sank YTD but didn't move on the news... Sales were pushed into Q4 for incentives and Q1 isn't exactly the time of year to sell RWD sedans

Well, that's not how it's worked out - down ~30 points or ~12% since earning announced...

[GoCougs]

Not looking good for Tesla. I hope GM buys them though.

Probably not likely - Tesla actually has a bit higher market capitalization than GM (even despite this week's tanking).

But GM builds a better car, and a better EV, and already is one of the leaders in autonomous driving with its partnership/stake in Cruise Automation. About the only benefit is the Supercharging network.

Plus, no one would have bought a $80k+ Model S, X or $50k Model 3 from GM. GM-owned Telsa would fair a bit better, if it remained a division a la Chevy, GMC, Buick, etc., but a lot of the Shiny Thingness would dull.

[Laconian]

I sat in my teammate's new Model 3. Interior quality is much better than the early Model S I tried before. Much better.

[93JC]

I was reading your post a little too quickly and thought you wrote "I spat in my teammate's new Model 3."

I thought, "Jeez, that's a little extreme even if you're a #short..."

[Laconian]

Bah, a decent #short would plant a remote explosive under a floormat and film the resulting inferno on a "security camera".

[Char]

I sat in my teammate's new Model 3. Interior quality is much better than the early Model S I tried before. Much better.

I mean, there isn't much to the interior, so that can't be hard.

[12,000 RPM]

I think Tesla's IP is its real valuable asset

Their power management algorithms are head and shoulders above the industry. If the EV market really heats up miles per kWh will be a thing, and anyone holding Tesla's algorithms will be well positioned.

[Laconian]

Their motors and overall drivetrain efficiency are the best.

[SJ_GTI]

https://www.cnn.com/2019/05/02/investing/tesla-raising-cash/index.html

Its cash reserves dwindling, Tesla announced plans Thursday to raise $2 billion through the sale of additional shares of stock and debt.

CEO Elon Musk had insisted through much of the last year that the company was doing fine and would not need to raise additional cash. But a depressed stock price forced it to pay off a $920 million bond in March with cash rather than stock.

That payment was a big factor in the company's cash reserves falling by $1.5 billion during the quarter, leaving it with just over $2 billion in cash on its balance sheet. It also reported a $702 million loss in the quarter.

[MrH]

HAIL MARY!

Whether this actually goes through or not is the make or break to keep this thing alive.  If it doesn't, it's game over.  If it does, it just buys them some more time.

I don't see how the financials get any better with time though.

[SJ_GTI]

Meanwhile, their stock price went UP on the news. Seems crazy to me.

[MrH]

Meanwhile, their stock price went UP on the news. Seems crazy to me.

There are still a ton of questions of how this is working, at what price, and when exactly.  There's a call at 11 apparently?

The best response on twitter:

"An 18-year old $40B "startup" that has never shown an ability to be sustainably profitable announces yet another raise, and the market thinks this is bullish"

By "up", the stock price basically went to where it was a couple of days ago.  A 2% swing in Tesla world is just noise.

I don't know why any bank would back this though. 6 months ago, Elon said they would be cash flow positive from here on out, equity raise wasn't necessary, and stock was $350+.  Now, they're back to hemorrhaging money, with no plan to stop the bleeding, need cash to keep the lights on, and are looking to raise with a stock price at $240.

[12,000 RPM]

My boss was saying the time for this was back when their stock was much higher. As is if things stay on the current path they have about a year before they start paying overdraft fees

[Morris Minor]

Meanwhile, their stock price went UP on the news. Seems crazy to me.

This would be where VW or GM, or Ford or Groupe PSA or someone comes in.

[thewizard16]

There are still a ton of questions of how this is working, at what price, and when exactly.  There's a call at 11 apparently?

The best response on twitter:

"An 18-year old $40B "startup" that has never shown an ability to be sustainably profitable announces yet another raise, and the market thinks this is bullish"

By "up", the stock price basically went to where it was a couple of days ago.  A 2% swing in Tesla world is just noise.

I don't know why any bank would back this though. 6 months ago, Elon said they would be cash flow positive from here on out, equity raise wasn't necessary, and stock was $350+.  Now, they're back to hemorrhaging money, with no plan to stop the bleeding, need cash to keep the lights on, and are looking to raise with a stock price at $240.

He also just said he thinks their cars can be appreciating assets and that the real value is in autonomous tech, something they've had to slow their roll on recently while they focused on making the Model 3 actually work.

Don't get me wrong, I kindof like the crazy bastard and I don't really want to see Tesla fail as an independent company, but their... exceptionally erratic... decision making lately doesn't inspire confidence that they have an actually legitimate long-term plan.

[MrH]

Yeah, none of it makes any sense.  Why is he even selling the cars if they're appreciating assets?  And if his autopilot is that good that it makes cars into appreciating assets, why even bother with making cars?  They're clearly not very good at making cars profitably. Go buy 20,000 Civics and outfit with Autopilot and release them into the world to turn Tesla into a money making monster.