Ok, Thanks! I got it. So selling those 14k inventory cars means we can get the profit on them (20%) of around 140M, meaning still 560M profit to find. 188M costs were non recurring, but that's still a chunk to make up. Now I understand.
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Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable
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Ok, Thanks! I got it. So selling those 14k inventory cars means we can get the profit on them (20%) of around 140M, meaning still 560M profit to find. 188M costs were non recurring, but that's still a chunk to make up. Now I understand.
Fact Checking
Well-Known Member
The full quote is even worse in my book:
"Unlike some other EVs we’ve recently tested, the E-Tron doesn't lunge off from a stop; it has a more leisurely rollout. That’s appropriate for a luxury vehicle, but drivers should be aware of it if they try to jump into a line of traffic or merge from a stop. On the plus side, there is no spinning of wheels that we have experienced in some other EVs, such as the Hyundai Kona EV. (Because EVs have so much power right away, their tires can spin faster than they can gain traction.) Once the E-Tron is moving, drivers get smooth and effortless power on demand, at any speed."
and I find it incredible how CR was able to, with a straight face, list poorer acceleration as a "luxury" advantage, ignoring that:
- Better acceleration combined with traction control is a safety feature, it can save the car and passengers from serious accidents, even if the driver is careful, as it happened recently with a Model 3:
- Tesla owner taps into his Model 3's instant torque to evade out-of-control car:
- "At the rightmost lane, a Honda Accord violently slammed into the right wall, and because of the impact, the Japanese sedan bounced off and veered towards the left lane, straight into the Model 3."
- There's also a YouTube video about a Tesla avoiding a rear end crash narrowly through emergency acceleration:
- Will Consumer Reports acknowledge that the eTron would not have been able to evade these accidents? Rhetorical question...
- But even if poorer acceleration is a "luxury" feature, it can be activated on Teslas with "Chill Mode". Why pretend that it is unique to the eTron?
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Baird analyst came out with a report this am. Upgrading Tesla. Hasn’t hit main news feeds yet
It doesn't work like that, because there will be new inventory/in transit at the end of Q2 replacing the sold inventory/in transit at the end of Q1. What does influece profit is the number of cars sold. In Q3 that was 63k, if Q2 is - say - 93k, then they will have sold an extra 30k. It depends on the ASP and margin on the total mix how much extra profit that brings in.
Tesla makes money selling cars (and energy products), reducing sales numbers must impact profits.
Q1: Selling less cars (whether made or not) and thus not receiving revenue from them impacts overal profitability.
Q2: Selling more cars (regardless of when they were made) boosts the automotive gross profit total, automotive net profit total, and thus bottom line.
Q1: $1.09 billion in operating expense, $4.5 billion total revenue, on 12k S/X deliveries, 51k 3 deliveries +TE. $522 million operating loss
Q4: $1.02B opEx, $7.22B Revenue, 27.7k S/X 63.3k 3 deliveries. $414M operating profit
Gotta sell the widgets to make the money.
As to others saying Q1 2019 was the worst ever, Q1 2018 was a $597 million operating loss. Compared to that, YoY operating loss improved 13% and operating margin improved 6%. The quarter ended with 30 days of inventory.
Here's a summary:
Baird boosts Tesla target to $355 from $340 ahead of delivery release TSLA - The Fly
There's also a positive article from Jefferies analyst:
Tesla Bull Jefferies Says They Got It Wrong So Far This Year
BTW., Consumer Reports (surprise) writes a gushing recommendation for the eTron:
In the eTron recommendation CR 'failed' to hold against Audi a number of things they listed as a concern for the Model 3: production issues (which the eTron has currently), range and efficiency (which is subpar for the eTron), nor the fire risk related eTron recall, which I suppose should have been a factor in its 'reliability' and 'safety' score"?
Instead:
"Reviewers from the organization proved impressed with the all-electric SUV, noting that the vehicle “takes charge among new EVs.”"
And the lackluster acceleration of the eTron was spun positively too:
Quite interestingly, the e-tron’s rather leisurely acceleration, which was less aggressive than other electric cars such as the Model 3, was dubbed as “appropriate” considering the SUV’s luxury segment. “Unlike some other EVs we’ve recently tested, the E-Tron doesn’t lunge off from a stop; it has a more leisurely rollout. That’s appropriate for a luxury vehicle… On the plus side, there is no spinning of wheels that we have experienced in some other EVs… Once the E-Tron is moving, drivers get smooth and effortless power on demand, at any speed,” Consumer Reports noted.
Because Consumer Reports reviewers would have been unable to activate "Chill Mode" on a Tesla to simulate an eTron, right?
You cannot make this up - their review reads almost as an Onion article. It's almost as if Consumer Reports was now acting as a marketing and PR arm of Audi.
In other news, Consumer Reports CEO and President Marta L. Tellado:
worked as "Vice President Global Communications, Ford Foundation, 2004–2014, 10 years, Greater New York City Area":
While the Ford Foundation has no official ties to the Ford Motor company today anymore, and CR's sympathy towards gascar makers and apparent antipathy towards Tesla might just be a coincidence, but it's a small world, isn't it?
Anyway, all the CR apologists here who argued that CR is simply being tough to Tesla in interest of their subscribers should read the eTron review and compare it to their Tesla coverage ...
Infomercial - they did it too obviously.
Slow acceleration - that’s a good thing.
Less range - that’s perfect, longer range is a waste.
Fire risk - we reserve that word only for Tesla.
Production issues - don’t mention anything negative in infomercials.
Money talks, anyone who doesn’t believe it is simply naive.
Driver Dave
Member
Another day, another clueless Times article, this one brought to you by SuperCruise.
Driverless Cars May Be Coming, but Let’s Not Get Carried Away
Clueless example 1
“The A.I. system, unless it’s fed with hundreds of millions of examples, can’t pick that up, because it doesn’t think. It just pattern-matches,” Mr. Pratt said.
Yes, this is why Tesla Fleet feeding data into their software solves this, and will leapfrog everyone.
Clueless example 2
“The joy of driving a car is something that is incredibly innate and precious, and we don’t think that’s under threat at all,” he said.
At this point, I enjoy driving with autopilot on much more than having to deal with driving manually. Driving is totally under threat. Autopilot is a joy!
With articles like this, the majority of investors have no clue what's coming.
Driverless Cars May Be Coming, but Let’s Not Get Carried Away
Clueless example 1
“The A.I. system, unless it’s fed with hundreds of millions of examples, can’t pick that up, because it doesn’t think. It just pattern-matches,” Mr. Pratt said.
Yes, this is why Tesla Fleet feeding data into their software solves this, and will leapfrog everyone.
Clueless example 2
“The joy of driving a car is something that is incredibly innate and precious, and we don’t think that’s under threat at all,” he said.
At this point, I enjoy driving with autopilot on much more than having to deal with driving manually. Driving is totally under threat. Autopilot is a joy!
With articles like this, the majority of investors have no clue what's coming.
You are forgetting the Osborne effect The Osborne Effect On The Auto Industry | CleanTechnica
It doesn't matter how many % of ICEs OEMs can produce if people don't want to buy them.
Per that article, 2024 can be a year when it becomes obvious nobody wants them and ICE sales go down to almost nothing in 2025.
Then EV sales share can be 90% (U.S.) with the majority of consumers waiting or buying a used ICE as a temp workaround.
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@TradingInvest
That's going to need a lot of batteries, are you aware of the article on battery growth? (recent article)
Global Lithium-Ion Battery Planned Capacity Update: 9% Growth In A Single Month — March Charts! | CleanTechnica
Which money though? This doesn't make sense.
Are you saying they got a donation from Audi?
Wondering if there's a way to verify it. Otherwise I am totally at loss why such an obvious bias.
We have a tight garage, and the doors can’t open all the way.
Artful Dodger
"Neko no me"
Fastned, a fast charging network operator based in the Netherlands, opened trading on Euronext. It wasn't an IPO per se since Dutch retail investors could previously already subscribe to certificates through a boutique trading desk. Those certificates traded (with very little liquidity) at around 8-11 EUR/share for the last few years. Today, first day on Euronext the share price rose from 11 EUR at opening to 31 EUR right now (late afternoon here). Market cap is around 470M EUR for 103 in-service CCS charging stations at prime locations in the Netherlands and Germany with a further 150+ in development in the Netherlands, Germany, the UK, Switzerland and Belgium. It remains to be seen how much of that share price is just opening day excitement in a small market (volume worth of 2.4M EUR so far) or a lasting valuation.
Still, assuming Fastned is valued at $500M, how much should we value the Tesla network within Tesla? On the one hand the supercharger network is a lot bigger, but on the other hand it is restricted to one brand and (at least in Europe) not located in the same premium locations as Fastned's. Still, $2-3B just for Tesla charging network does not seem an implausible valuation?
Still, assuming Fastned is valued at $500M, how much should we value the Tesla network within Tesla? On the one hand the supercharger network is a lot bigger, but on the other hand it is restricted to one brand and (at least in Europe) not located in the same premium locations as Fastned's. Still, $2-3B just for Tesla charging network does not seem an implausible valuation?
I took the time to post correcting some of the FUD in the comments, pointing out that what's being sold in the EU is inventory S+X (incl. 75Ds, and sometimes even 85Ds), that no Ravens have been reported registered anywhere in Europe yet, that nobody has reported a Raven delivery yet, and that reports are that homologation is only due to be completed next week.
The comment posted, but then subsequently disappeared. SA sure likes to maintain its bubble. :Þ
Papafox, the more I watch the SP over the years, the more I’m convinced that the bulk of the mischief is not done by pure shorts, but by sellers of options. It’s unadulterated manipulation to make money on weekly (and longer) options. There is enormous profit in this.
The shorts happily pile on, but I suspect that they don’t have nearly as much influence themselves on the SP relative to all the noise they make in the press, TSLAQ, etc.
The option sellers quietly make their money, with help from shills like Tamberrino. They don’t care one way or the other about Tesla. It’s pure greed. I suspect that most of the suspicious trades you are documenting every single day are for the purpose of profiting from weekly options.
Antares Nebula
Active Member
It's all the hedgies and Russian trolls!
EVNow
Well-Known Member
As they say predicting is hard, esp., about the future.
Surprising traffic down trend since May 27 according to Alexa.
Tesla Competitive Analysis, Marketing Mix and Traffic - Alexa
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