No surprise, they missed and blamed an extreme production ramp at the end of the quarter again.
Q1 was 14,820 vs forecast of 16,000
Q2 was 14,370 vs forecast of 17,000
They are missing their forecast by even more. Deliveries are decreasing sequentially. Model S had a huge drop from 12,000 to 9,745. It’s the same old story of production was much better the last month of the quarter, so things are great. They maintain the annual forecast of 80-90k vehicles.
They allegedly exited Q1 making 750 model X a week. That’s 9,750/Qtr. Q2 sales were 4,625 or about half that. Something is fishy.
They claim they will build 28,600 in Q3 and 31,200 in Q4.
I like one of the comments “I feel like TSLA will be one of those stocks where it NEVER a good time to buy but, in retrospect, we’ll all wish we had bought in at ANY time.”
Reddit is hilarious. …sorry but Tesla is by the IRS definition a hobby not a business that has to show a profit in 5 years…
If a company is going to take 10-20 years to be profitable, and you’re not a long term investor, you probably shouldn’t buy the stock?
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[–]HonorAmongSteves 1 point 8 hours ago
20 years to be profitable? That’s ridiculous. How can a company intend to stay in business for 20 years if it can’t turn a profit? Where would the operating funds and working cash come from? Are they going to issue debt and pay it off with more debt for 20 years? Who is going to lend money to a company that has never turned a profit for 20 years? Are they going to issue more shares and dilute current shareholders?
If your view is that a company won’t turn a profit for decades, it’s entirely unreasonable to own stock in that company.
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[–]VolvoKoloradikal 3 points 7 hours ago
A company that hasn’t made a profit in 20 years is a company which will take double that time to break even for investors.
They always miss, so it shouldn’t be a surprise. Was it expected to have a sequential decline?
I’m learning Tesla bulls are bad at math. They talk about Tesla being more profitable than Ford. Tesla has never made a profit. Their operating losses increased from $61M to $186M to $786M. That’s going in the wrong direction. Cash flow is getting worse every year too. So they lose more money every year, have worse cash flow, but the market cap increases? The entire worth is based on the promise of 500,000 vehicles a year. Does anyone believe they’ll do it by 2018 or even 2020?
500,000 won’t make them profitable either. They’ll be investing to get to 1M. They won’t get there without another factory which costs billions.
It is not lie: Elon has ambitious growth plan and he sets based on that, but practical difficulties pulls him out of his plan.
Volatility makes money:
I have made around 25 stocks/etfs purchases so far last one month, all that returned average of 2.5% gain so far.
This time, I did not buy his stock at $192, only reason skeptical about SCTY buyout idea. Had I purchased this at $192, now I would have made 13% profit.
It is possible, provided operating profit is higher than net profit (TSLA case is loss). Just equivalent example: I own rental SFH and always file tax loss while cash flow positive. Practical cash flow positive (operating profit) makes me hold/sustain my business while tax loss (net profit/loss) helps me moving my profit taking during retirement. Two factors play big role on this case, depreciation and mortgage.
Tesla does similar strategies and of course will take more money from shareholders then and there.
Are they going to issue more shares and dilute current shareholders? A Definite YES, as long as investors willing to pay, Elon is going to use them.
Their cash flow is negative. Their operating profit is negative. Their net profit is negative. It just amazes me so many people believe the hype after they continually fail to deliver.
If you can’t differentiate gross profit vs operating profit, then I’m not going to try explaining it. It’s pretty difficult to not have gross profit. You’d have to sell your product for less than it costs to make.
Yes, when it comes down less than $200, I own TSLA and hold for long term, may be until retirement.This is worth getting and accumulating sufficient interval.
On any case, this volatile stock, very risky one, especially after SCTY take over. Elon may further need money and it takes 2-3 years minimum to come back to track.
The only issue with me is just by seeing more than 25% profit an year, I simple sell it. I really need to control - that is the key issue with TSLA.
