You remember the days you were holding AAPL during 1998 when it dipped drastically. Car company is capital intensive and that can not be compared like Facebook. As dispatches increase profit goes up. You know investment is for long.
He already told ahead that TSLA is less profitable than last qtr. Future guidance is increasing. Read the entire the document, you will see how it is.
I listened to part of the earnings call and what I heard(so far) is surprisingly good.
Model Y has 76% common parts with Model 3, so CAPEX will be much lower(unlike Model S and Model X, where common parts were 30%)
Model Y will be built in next to Gigafactory in NV, so assembly with powertrain+drivetrain is instantaneous.
Worst case, even if recession in 2019, 50% higher production at a minimum.
More mobile vans to fix issues.
Parts will be stocked at Service centers(unlike past where they were stocked in Parts centers), and commonly used parts will be more in stock at the service centers.
No need to call, can schedule service via app.
Every Tesla owner if there is an incident with the car while driving, immediately even before the car has stopped a loaner vehicle and a tow truck will be on route to cater to him/her.
Cool ! First time, I listened the entire conference call. At times, Airpods dropped, failed to listen.
Except recession related, I see positive on TSLA for long hold. Lot of enhances coming.
On negative side, company is still operating at startup model , inefficiency. At one time, Musk said US team ordered parts from China and then imported, dispatched to Chinese customer…etc.
Really, profit margin is tough - with inefficiency - but workable with high volume.
Given the slew of managerial exits over the past year, not to mention the “funding secured” fiasco that happened less than six months ago, you might have expected Tesla to get to that news about its CFO a little sooner on the call. But no. Instead, we have a company seemingly on the cusp of sustained profitability and global expansion that has also slashed its workforce and spending and is now bidding farewell to its CFO. Truly astounding.
He is 56 years old, with 15M compensation (corrected). Hopefully, real retirement.
But that should not be an issue for company as they bring young one as CFO. Reading his resume, he jumped from Analysts position to CFO in 8 years ! The person should be dynamic than outgoing.
According to Ahuja’s most recent SEC filing on October 22, 2018, the Tesla, Inc. CFO holds 28,515 shares of Tesla directly and another 38,989 shares indirectly through a family trust.