TSLA Market Action: 2018 Investor Roundtable

[BioSehnsucht]

They will replace out all the older chips/cpus and collect them to mine bitcoin...

GPUs are pretty cost ineffective these days for mining.

Having said that, if you knew someone who could supply a lot of free electricity using solar and storage.... yeah, the payoff window to build to facility to run all those AP2/2.5 boards as a massive mining rig will be way too long to be worth doing.

 

[ValueAnalyst]

I think the more relevant question is what will happen to the FSD portion of Deferred Revenue.

It’ll stay as deferred revenue

 

[CuriousSunbird]

Plus, all those FSD pre-payments could only earn interest, they couldn't count the payments themselves as revenue/cashflow until FSD is delivered, right?

So they just had this growing number that was a "liability" since it wasn't an "asset" on the accounting reports, that wasn't help them reach GAAP profitability. By slowing this (by not offering FSD on 3 at this time) they can make the numbers look better (even though when FSD is eventually delivered and they can list all that money as revenue, there will be a nice spike for whichever quarter it occurs in, it's just bear FUD fuel for now).

You are right that the payments couldn't count as revenue (only as deferred revenue).

Also you are right that they increased the liability item of Deferred Revenue. However, they also (and essentially equally) increased the asset item of Cash (something that Tesla, as an SGL-4 credit, desperately needs right now).

Of more immediate importance, if they give up on, or substantially postpone, FSD for the people who already paid for it, they will have to refund (or offer to refund in the case of postponement) the money. This will not impact profitability or solvency, but will impact cashflow & liquidity.

 

[ValueAnalyst]

Shorts are delighted, even more losses with this version!

This is actually a concern. Why not produce 7,000+ LR and ship to int’l? Or if cells are the limiting factor, why not increase price and ship int’l? Or why not price MR only $2k lower. MR will likely command lower margin; Mix will be important.

 

[gora321]

Why Porsche's CFO calls Germany's digital infrastructure a 'catastrophe'

Now they understand why Tesla in not in Detroit. But where is it?

 

[Matias]

Tesla is not selling FSD anymore

What happened to the FSD option????

 

[ValueAnalyst]

You are right that the payments couldn't count as revenue (only as deferred revenue).

Also you are right that they increased the liability item of Deferred Revenue. However, they also (and essentially equally) increased the asset item of Cash (something that Tesla, as an SGL-4 credit, desperately needs right now).

Of more immediate importance, if they give up on, or substantially postpone, FSD for the people who already paid for it, they will have to refund (or offer to refund in the case of postponement) the money. This will not impact profitability or solvency, but will impact cashflow & liquidity.

“Something that Tesla desperately needs right now.”

How do you explain the fact that Tesla neither needs nor wants external capital, if it so desperately needs it?

The fact is that Tesla never had a “cash crunch” problem; it was a perception that TSLAQ created and non-financial savvy bulls ate up... and apparently still do.

 

[CuriousSunbird]

Tesla is not selling FSD anymore

What happened to the FSD option????

That's the $64,000 question (actually $200 million I think).

 

[CuriousSunbird]

Tesla is not selling FSD anymore

What happened to the FSD option????

Is this part true?

Anyone here have it?

 

[dqd88]

You are right that the payments couldn't count as revenue (only as deferred revenue).

Also you are right that they increased the liability item of Deferred Revenue. However, they also (and essentially equally) increased the asset item of Cash (something that Tesla, as an SGL-4 credit, desperately needs right now).

Of more immediate importance, if they give up on, or substantially postpone, FSD for the people who already paid for it, they will have to refund (or offer to refund in the case of postponement) the money. This will not impact profitability or solvency, but will impact cashflow & liquidity.

Seems that they are just postponing it. But if someone wants a refund they could prob get one. But most won't because if they go back later for FSD it will just cost more.
Immaterial
You bears got out the magnifying glasses, looking hardcore for any iota of weakness. Unaware of the #paradigmshift taking place

 

[CuriousSunbird]

Seems that they are just postponing it.

I thought that would be the more logical course in most circumstances. But if they are actually taking it out of people's accounts as the above quoted poster suggests, that indicates a more fundamental change.

 

[YasB]

Why Porsche's CFO calls Germany's digital infrastructure a 'catastrophe'

Now they understand why Tesla in not in Detroit. But where is it?

Most of Teslas R&D is located in Fremont or Palo Alto which belong to the San Franciso bay area. That is in California. The region is also called Silicon Valley, because they know how to build software and high tech stuff there. It's about 20 miles away from the VW Electronics Research Lab which has been opened in 1998. It's also about 20 miles from Porsches Santa Clara R&D Center. All of those places are about 9300 km from Stuttgart-Zuffenhausen, where they know how to build cars. Glad i could help and answer your question. You are welcome!

 

[Earlian]

MID Range now, simply means: The cost curve and capacity improves and this is the proof that the base model will come. Just not yet.

FSD removed: Just wait with speculation until mid of November. Wouldn’t be the first time Tesla removed something in advance of a major change. 50:50 Chance this is the end or the beginning of Tesla’s Autonomous path.

 

[dqd88]

Is this part true?

View attachment 345141

Anyone here have it?

Not relevant to this thread. take elsewhere

 

[CuriousSunbird]

Not relevant to this thread. take elsewhere

Very relevant if they are going to have to refund $2-300 million in cash.

 

[dqd88]

Most of Teslas R&D is located in Fremont or Palo Alto which belong to the San Franciso bay area. That is in California. The region is also called Silicon Valley, because they know how to build software and high tech stuff there. It's about 20 miles away from the VW Electronics Research Lab which has been opened in 1998. It's also about 20 miles from Porsches Santa Clara R&D Center. All of those places are about 9300 km from Stuttgart-Zuffenhausen, where they know how to build cars. Glad i could help and answer your question. You are welcome!

read the article genius

 

[cheshire cat]

Please create a separate thread to discuss your feelings about creating a separate thread for feelings about the Market Action thread!

I'll ... see myself out, thank you very much.

Or as we say in U.K. "I'll get me coat".

 

[dqd88]

Very relevant if they are going to have to refund $2-300 million in cash.

so they have the chip coming out but are giving up on the software?

 

[CuriousSunbird]

so they have the chip coming out but are giving up on the software?

It makes no sense. They say the hardware is all on the car - if so, the upgrade is all software - minimal marginal/distribution cost - so why offer to some but not to others.

The only possibility that seems likely to me is that they have hit a big enough snag that they are withdrawing for both new and existing FSD. If it's true they're removing FSD from existing accounts, that would be supportive evidence.

 

[cheshire cat]

€233 in the fatherland ho-hum, another Zeberdee day? Boing!!!