-
Want to remove ads? Register an account and login to see fewer ads, and become a Supporting Member to remove almost all ads.
TSLA Investor Discussions
- Thread starter Fr23shjive
- Start date
-
- Tags
- investment market TSLA
- Status
I wouldn't think they would consider selling credits part of the profit margin of the car. I could be wrong, but you aren't guaranteed to sell the credits, but you are the car. I would be really scared if they were banking on credits to be profitable. Because at 25% margins that means that they would be selling the car below cost, and using the $~35,000 to make up the difference, and provide the entire 25% margins.
If they put the credits in their margin numbers I am selling my TSLA stock immediately! I am sure they are counting on the money, but it is on TOP of their 25% margins.
Citizen-T
Active Member
I'm assuming that they aren't able to sell all 7 credits for each car. That would be best case scenario IMO. I don't know anything about the proper accounting practices, but my point is just that I'm sure that Tesla has some expectation for how much they will make from selling credits and that it is accounted for somewhere in the guidance that they have already given us.
I think that this news helps the stock because it makes the guidance they gave us more believable to more people.
Also, the price of credits is set by supply and demand. As Tesla increases the supply, it will have to lower its offer price on the credits to sell them all.
Citizen-T
Active Member
Maybe. Demand is also increasing. Every year the percentage of sales that need to be zero emissions increases. Lots of moving parts.
Agreed!
I don't know which cars earn credits, or how many, but I'm going to guess that the Model S will earn so many credits that Tesla will be flooding the market and the price of credits will drop drastically. Tesla is the only car maker that will not be able to use its own credits and will have to sell all of them or lose their value. Other car makers can consume their own credits by balancing off their green cars with their stinkers. But not Tesla. Credits which fetched $5,000 to $10,000 when 500 Roadsters were generating them for the market and other companies were using theirs in house may drop to a couple of hundred dollars each when 20,000 Model S cars are generating 140,000 credits, all of which go on the market because Tesla has no use for them.
That billion dollars probably shrinks to a few million, and Tesla knows it and probably already knows what they're actually going to be worth.
gg_got_a_tesla
Model S: VIN 65513, Model 3: VIN 1913
Yeah, if the Chinese elite can be weaned off their Audis and Buicks, it'd be a tremendous oppty for Tesla. If Tesla's retail store concept catches on, it might establish the kind of brand name cache that Apple enjoys in China.
Speaking of China. The consortium they largely own may have just purchased SAAB
Saab Automobile deal 'complete': report - The Local
ken
Speaking of China. National Electric Vehicle may have just purchased SAAB.
Saab Automobile deal 'complete': report - The Local
Saab Automobile deal 'complete': report - The Local
Maybe. But as the saying goes, diamonds are forever. Clean car credits have value only as long as the law supports them. If the government ever wises up and abandons the whole "cap and trade" concept, so that every manufacturer pays fines for its stinkers, and cannot buy credits from cleaner car makers, then the credits become worthless.
Also, I don't know if credits can be held over indefinitely. When you build a clean car, are those credits good forever? Or is there a use it, sell it, or lose it clause? And finally, diamond mines are very few, and De Beers has managed to create a consortium that strictly controls the diamond market. With more and more companies building EVs, clean car credits are going to proliferate, at the same time as gas prices rise and the market for stinkers decreases, so there will be less and less demand for credits.
I really don't think that clean car credits can be manipulated the way diamonds have been. They will have to sell them or watch their value disappear. And the number of EVs produced is going to rise geometrically, unlike diamonds.
(Off topic: I think diamonds are uninteresting. If ever get engaged, I'll buy my fiance an emerald ring. Much nicer stone. And if she really wants a diamond just because that's what everyone else has, I'll know that she'd be a dull person to grow old with.)
I discovered the hard way: Emeralds have fissures and cracks. You can't drop them or bang them against anything without risking their integrity. I'd steer clear of them.
JRP3
Hyperactive Member
JRP3
Hyperactive Member
I'd say the diamond industry is an example of not only restricting supply and artificially increasing prices but also artificially creating a demand as well. Unfortunately too many people buy into the hype. I agree with Daniel, I doubt I'd want to be with a woman who actually thinks a diamond ring means something. Probably why I'm single :wink:
NigelM
Recovering Member
I'll keep that in mind. They are pretty, though. Diamonds sparkle under the light, but that's about it. As a kid I got hold of a silicon crystal. A silicon crystal will scratch glass, so I went around "proving" to people that it was a diamond. No idea if anybody was dumb enough to believe me. The engagement ring thing is not likely to become an issue, though, since I'm a complete flop with women. They all think I'd make a great husband... for somebody else. Here's an idea for an engagement gift: a few hundred shares of TSLA. (Had to bring it around to the thread topic somehow. :biggrin
- Status
Similar threads
- Locked
