TSLA Market Action: 2018 Investor Roundtable

[22522]

Tesla's line item for the usual COGS is "Cost of revenue" on its income statement. It's the same thing.

R and D is G and A because it is speculative.

Autopilot software development costs money and drives revenue. Is that cost of revenue?

 

[vinvin218]

Thank you for this @vinvin218, here’s the English translation:

Breaking the barriers, the Chinese Ministry of Commerce confirmed Tesla will build a factory in Shanghai

The Chinese Ministry of Commerce has confirmed that Tesla will establish a wholly-owned factory in the Shanghai Self-Trade Zone. This move will break the limit of more than three decades.

"As far as we know, Tesla is negotiating with the Shanghai Municipal Government on the establishment of a factory." China will allow Tesla to establish a work as a wholly-owned subsidiary, and China welcomes foreign investment, especially on the high side. Technology, strategically emerging industries such as energy conservation and environmental protection in China.

welcome

 

[ruralectric]

Some people are saying it's a reference to an older, inaccurate article. Can you clarify?

Yeah. Dint this same member post something very similar about a week or two ago? Pretty sure they did, because I remember watching the premarket early in the week to see if there was going to be a pop.

 

[ruralectric]

A Chinese media report: (Rumor) from a person who is close to the Shanghai government: "Tesla will set up GigaFactory in Shanghai and already signed documents with the city government"

here is my tweet : vincent on Twitter

Here it is. So what's the story?

 

[Words of HABIT]

One thought regarding Tesla stashing thousands of M3 at the end of Q2, and changing their policy to not assign VINs until 7 days before delivery. Combine the two, we could see a YUUUGE avalanche of VIN assignments right at the end of June for delivery in early July. I think most traders are waiting till July 3rd for the Q2 delivery report to come out. But this is a possible catalyst that could occur before July.

IMHO Tesla is not stashing any cars, let alone thousands. It makes no financial sense to stash and pay for products that they can keep the purchase price from, even if only delayed. Simply send off to Canada or other Countries to keep the US tab rebate in check.

 

[22522]

IMHO Tesla is not stashing any cars, let alone thousands. It makes no financial sense to stash and pay for products that they can keep the purchase price from, even if only delayed. Simply send off to Canada or other Countries to keep the US tab rebate in check.

Don’t know about Canadian rebate windows.

For every car Tesla stuffs in the window there is 7.5K more dollars in the Tesla community. Modeled as cliff cut off.

 

[Bet TSLA]

Looks like we won't have to worry about SpaceX failure blowback tomorrow: SES-12 deployed successfully!

 

[sundaymorning]

Looks like we won't have to worry about SpaceX failure blowback tomorrow: SES-12 deployed successfully!

Another successful mission. I think the strong jobs report will have a continued effect on the market tomorrow.

 

[BioSehnsucht]

They could have confirmed with China that they are opening a factory, and even the location, but still have not completely closed the deal with regards to the details. There's no need for it to be one or the other.

 

[ValueAnalyst]

R and D is G and A because it is speculative.

Autopilot software development costs money and drives revenue. Is that cost of revenue?

Good question, and we don’t know the allocation of Autopilot expenses between cost of revenue and R&D.

Note, however, that Autopilot revenue is first classified as Deferred Revenue on balance sheet, and recognized on income statement over time as features are rolled.

Also note that autopilot revenue is high gross margin (likely close to 100%), so my guess would be development costs are mostly in R&D, and not much is recognized in cost of revenue when deferred revenue is recognized later in revenue. Hope that helps.

 

[Tslynk67]

China factory announcement is just the kind of thing to communicate at shareholder meeting...

 

[ValueAnalyst]

What would you like Elon to discuss on Tuesday?

Tesla Energy, a top area of interest for investors, is leading the way with more than 50 votes, followed by Model 3 production update and subsequent gigafactories. What do you want to get out of tomorrow's Shareholder Meeting?

 

[ruralectric]

What would you like Elon to discuss on Tuesday?

Tesla Energy, a top area of interest for investors, is leading the way with more than 50 votes, followed by Model 3 production update and subsequent gigafactories. What do you want to get out of tomorrow's Shareholder Meeting?

A $150 pop.

 

[Unpilot]

A $150 pop.

Would you sell it you got that?

 

[ValueAnalyst]

Would you sell it you got that?

I would buy more Holding for the longer term.

 

[ruralectric]

Would you sell it you got that?

Yup. A couple hundred shares, anyway. My M3 reservation came up about a month ago. Been waiting for a little price recovery before I pull the trigger. Honestly, I'll probably sell a couple hundred shares well before that. I'm driving a Prius with duct tape and a broken windshield : o

Edit: To be clear, the duct tape is not for the windshield, but it could probably use a little.

 

[avoigt]

Untapped shareholder potential. I did not expect that.

Responsible Choices?
More ESG funds hold Facebook than Tesla despite Tesla's green credentials

Tesla Is Rejected by One Class of Investors Who Should Love It

 

[Words of HABIT]

Don’t know about Canadian rebate windows.

For every car Tesla stuffs in the window there is 7.5K more dollars in the Tesla community. Modeled as cliff cut off.

Canada EV rebate is split by provinces here: rebates-incentives
Ontario: $14k (on EVs under $75k MSRP), Quebec: $8k, British Columbia: $5k
Eastern, Northern and Prairies Provinces (Alberta, Saskatchewan and Manitoba) have no rebate to support their oil and gas income.
For the three provinces that have rebates, they are not tied to income, everyone treated the same, and no timeline set for when the rebate will be reduced or removed (for example without warning January 2018 Ontario put a $75k MSRP cap on the rebate effectively eliminating the MS & MX from the program).
Note the exchange rate between USD and CAD, as of this morning it cost $1.30CAD to buy $1.00USD.

 

[MacRocket]

Untapped shareholder potential. I did not expect that.

Responsible Choices?
More ESG funds hold Facebook than Tesla despite Tesla's green credentials

Tesla Is Rejected by One Class of Investors Who Should Love It

I see Dana Hull in there as a co author

 

[aubreymcfato]

Untapped shareholder potential. I did not expect that.

Responsible Choices?
More ESG funds hold Facebook than Tesla despite Tesla's green credentials

Tesla Is Rejected by One Class of Investors Who Should Love It

I actually did: I have a small amount of money in a ESG fund in Italy, call Etica SGR. They have a very good street cred regarding ethical banking, and few years ago I put some money in, alongside my TSLA investment. I explicitly asked them if they were invested in TSLA, and they said "no": it doesn't satisfy all their criteria, which I don't know because, while the portfolio is public, the analysis is not.

I feat that lack of union is one of the problems: high volatility for sure is not appreciated. I wonder what could be don about that, but I'm quite sure that Tesla can do more to change the narrative focusing at least on this progressive/ethical bear side.