I do not trust how the EPS swings so much quarter to quarter. That’s highly suspicious. I’ll have to look at some quarters side-by-side.
With SOX, they have to declare correct (even audits are there) otherwise jail term which both CEO and CFO well aware. No wrong declaration !
Because the huge capital cost involved during initial years, car industry is slow to get profit, but TSLA model 3 peaked supply. Above all, China factory is getting approval.
Capital is depreciated over time though, so it’s actually a pretty steady expense.
The last 5 quarters of auto gross margin are:
25.8%
24.3%
20.2%
18.9%
22.8%
That’s a big reversal of what was a declining gross margin trend. GM was declining as model 3 became a larger part of the sales mix. That makes sense. Lower priced cars usually have lower margins. I’ll say I’m skeptical of the one quarter reversal. Hopefully, someone asks about it in the earnings call.
They cut their operating expenses by $150M qtr/qtr. There were no restructuring charges and they spent less on SG&A.
GM is huge compared to TSLA, in case of capital cost as they have big range of vehicles.
GM Current strike one of the key issue is labor concern due to electric cars conversion (2023) from ICE engines, less parts and potential lay offs.
I am not going through all financial figures, but TSLA was brought down way below to $178, now it is recovering with good future hope including China factory.
However, TSLA is known for big volatility one day $50 up and next day $50 down.
I guess their trouble period is over with this, hoping so…
BTW: I do not own even single TSLA now ! Missed the boat !! Even if I have it, I would sell it tomorrow morning !!!
You are too eager to sell. Have faith. You need to read up on faith based investing.
No sir, I moved from investing to Trading. I do not have any FOMO as I may get another chance later.
1 Like
Have you converted to Musk-ology?
1 Like
Watch GOT🤗
probably a lot of accounting tricks, delaying stuff from one quarter and push future stuff in this quarter.
maybe layoff cut save 20 million bucks
while buy 20 million dollars of it’s own product - revenue
write off 18 mil as operational expense, 2 extra mil profit,20 mil cover back the lower sales
2 Likes
Musk was not kidding.
1 Like
Capital costs will not be steady for a fast growing, capital intensive company. What many keep forgetting is the money being spent on future products that doesn’t give immediate ROI will hurt financials at first glance. Model Y lines are essentially build, Shanghai Model 3 is built. Neither have sold a vehicle yet but will be in next 6 months.
But once those are humming, don’t expect huge profits again because that money will be spent building European Gigafactory, Semi production, then Pickup production. Oh and their own battery cell production which is going to make their batteries cheaper and more energy dense than now (which is already industry leading).
Not to mention massive money being spent on autonomous stuff which at least will generally not scale as vehicles produced scales.
All this is in plain site if you pay attention.
Competitors are way behind, if you pay attention.
Great long term hold.
2 Likes
Here’s my TSLA position as of today. Love you guys long time… 
On a personal note, Adam was born earlier this month so I’m a stay-at-home dad now 
12 Likes
Congratulations on the baby! Glad everyone is healthy and happy
So @wuqijun is busy making babies!
Congras.
Do we know the lucky lady?
With the newborn child, @wuqijun has to work harder since no longer $5M per person.
Welcome to the SAHD club 
1 Like
Why TSLA another 5% up today