Author Topic: TSLA - Tesla Motors  (Read 517634 times)

Voodooking

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Re: TSLA - Tesla Motors
« Reply #1900 on: July 10, 2018, 08:18:00 AM »
https://electrek.co/2018/07/10/tesla-gigafactory-3-china-official-production/

Plans for Tesla Gigafactory 3 in China to begin production in 2 years and produce 500,000 cars a year in 5 years time.

Looks like Papa Musk is making some big bold moves.  :D

China will be the biggest economy in the world soon, so it makes sense to grab a slice of the 'new rich' I guess.

Hope it works!  :)


FFHWatcher

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Re: TSLA - Tesla Motors
« Reply #1901 on: July 10, 2018, 08:33:19 AM »
And the Shorts will be like, 'They will have to raise capital to build this factory!!!!  We were right!!"  and then they rejoice. 

Voodooking

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Re: TSLA - Tesla Motors
« Reply #1902 on: July 10, 2018, 08:45:56 AM »
Hhhmmmm... depends

If they need to start building it soon they will need to raise capital. If it starts running late because it's on "Elon Time" (i.e. Enthusiastic Mode) then they might have become profitable and be able to funnel those profits from the Model 3 into Giga3 in China.

People said all the same things about Amazon.com back in the day, and Bezos was subject to scathing analysts and short sellers too. It looked like they had a valid argument because Amazon had high costs and wasn't showing a profit, but Jeff just had a different plan.  8)

peterHK

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Re: TSLA - Tesla Motors
« Reply #1903 on: July 10, 2018, 08:58:00 AM »
Amazon has always had free cash flow; they just invest through the income statement. To compare their business model to Musk's (which is to operate a car company: low gross margins, low ROIC) misses a lot of things.

To put this in context, they just signed a MOI, which isn't an actual agreement. Further, they've announced this China plant story before like 2 years ago and it led to nothing.
They also have to get the capital to build production for the semi, and the Model Y, so when you add it all together it is a HUGE amount of capital they require to meet the promises they've made. Add to that the track record of consistently coming up late/short/with worse quality than promised, and I don't see how this all plays out as promised. 

The real risk for Musk is that the US hits a slowdown sometime in the next 2-3 years when he has to raise all of this capital and then can't. This thing is built on a house of cards (negative working capital, no free cash, capital intensive and highly cyclical industry etc.) and will like fall hard in any real selloff.

rb

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Re: TSLA - Tesla Motors
« Reply #1904 on: July 11, 2018, 12:35:08 AM »
Yes, a company with negative cash flow and a junk credit rating will build one of the largest auto plants in an industry that is insanely capital intensive. I'll believe that when I enjoy my Tesla Candy while traveling on the hyperloop.

rkbabang

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Re: TSLA - Tesla Motors
« Reply #1905 on: July 11, 2018, 09:29:33 AM »
Yes, a company with negative cash flow and a junk credit rating will build one of the largest auto plants in an industry that is insanely capital intensive. I'll believe that when I enjoy my Tesla Candy while traveling on the hyperloop.

You mean the underground Hyperloop built by the Boring Company... on Mars.

fareastwarriors

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Re: TSLA - Tesla Motors
« Reply #1906 on: July 11, 2018, 09:36:46 AM »
Yes, a company with negative cash flow and a junk credit rating will build one of the largest auto plants in an industry that is insanely capital intensive. I'll believe that when I enjoy my Tesla Candy while traveling on the hyperloop.

Tesla Candy? Where do I pay my $1,000 to buy it?

Investmentacct

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Re: TSLA - Tesla Motors
« Reply #1907 on: July 11, 2018, 11:44:25 AM »
My brother just ordered a 3.

 :-\

Once your brother receives , drive for yourself to find out the difference. Put the pedal down to feel the Tesla effect. Performance version heading to showroom for test ride. You may able to check it out sooner.

Cardboard

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Re: TSLA - Tesla Motors
« Reply #1908 on: July 11, 2018, 02:14:49 PM »
There may be no pedal if that one was built under the tent in the rush days of late June? Maybe that the red cable won't be fully connected to the battery?

Then Musk having nothing better to do, called for the build-out of a submarine to rescue kids in Thailand. Once it arrived, the kids had all been securely evacuated.  ::)

Cardboard

Lakesider

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