Tesla’s Make-Or-Break Moment Is Fast Approaching


#1640

Madoff’s return was amazing until it wasn’t.


#1641

200 miles = 100 miles from home. That is NOT “long distance.”


#1642

You should be more worried about social security and Medicare. They are the largest ponzi schemes in history.


#1643

With conservatives’ newfound fondness for debt and deficit we can always borrow and print our way out.


#1644

I understand that. I use 95% of time car driving local commute and is on Bolt. Rarely I go long distance by car. All our trips (even to Los Angeles) are by flight+rental cars for many years.


#1645

The only forum member that bought a Tesla is very unhappy with its unreliability


#1646

That’s exactly not true. I live in a Tesla 3 household. My brother loves his 3. He wants me to get a Y and he wants to get a Tesla truck later.


#1647

I was referring to another member. Do you own actually own a 3 or the stock?


#1648

I know you were talking about member. I’m just adding another opinion. We own the car and like 20 shares of stock.


#1649

Tesla has $920 million in debt that’s coming due — and it could wipe out a large chunk of the company’s cash


#1650

This debt load was many times the topic even last quarter. I read even the complete bond documents.

If stock price goes above $359 (IIRC), it will be converted to stocks - which dilutes existing share holder.

If TSLA has 3B cash (they do) and TSLA is supposed to pay off 1B loan, as an existing investor, I would prefer pay off 1B (which Elon will do) than diluting my shares !

This is positive news than negative.

Any way, enough said about TSLA, I won’t be updating anything about TSLA. I am in and will be in with TSLA as I strongly believe in the company. It is left the individual investors to do research, it is their own money and returns.


#1651

Only dilute ownership, didn’t dilute share price, @harriet, correct?
Those debtors got the shares at market price not at a discount, definitely not ‘free’ as in RSUs.
Debt becomes “cash” to pay for these shares.


#1652

I never buy the first model year or two of any car or any other product…Let others be the beta testers


#1653

Tesla is supposed to be a fast growing company. That’s what their insane PE implies. Musk said it’s turning profitable.

Which other fast growing and profitable company suddenly announces at 2am they are laying off 7% of their people? Something is not adding up.

More and more traditional car companies are selling EV’s. Don’t laugh at Hyundai. They will give model 3 real trouble. There’s also a new Nissan leaf with much longer range. The break moment for Tesla is indeed fast approaching, and Musk knows it. Thus the layoff.


#1654

People think Tesla is a tech company with tech gross margins. It’s not. The gross margin is similar to best in class auto companies. There’s zero reason to give that a premium evaluation over other auto companies. Especially when Tesla needs to invest tens of billions to match the manufacturing capacity of others. Also, gross margin will only get worse as they discount to offset loss of government EV credit.

Their main advantage is the giga factory and the cost advantage it creates for batteries. Calculate whatever benefit that is, and that’s the logical valuation premium. It’s doubtful they’ll maintain that advantage as more and more companies focus on EVs.

I’d be more interested if they focused on the battery business and selling them to other auto companies. It’d be far less capital investment. There’s less competition. They should be able to achieve much higher margins than on cars. Plus, the addressable market would be huge.


#1655

supercharger network investment?


#1656

How often do people actually use them? Also, it’s not free to use anymore. When it came free with car purchase, then it was an advantage. Now that customers have to pay, I don’t see an advantage to that.


#1657

Less valuable than before agreed.

However, the option to have fast charge ports for long trips removes range anxiety(major worry point for EV buyers) and hence valuable/makes Tesla cars a more attractive buy(which the competition lacks and would need to spend quite a bit to get establish it).


#1658

I wonder how often people drive long enough trips to need it. It’d be easy enough to drive the family’s other car, rent a car, etc. I know people that rent for long trips just to not put all the miles on their own car.


#1659

There are charging stations for many different types of EV. Not sure how fast they charge and how compatible they are with different car brands.

Tesla’s supercharging station is worth something. But how much are people willing to pay for it as an extra? 5k? 10k? I bet it’s much less than the premium Tesla charges over other EV’s.