TSLA corporate outlook

[iPlug]

Yep. Just initiated the 2020 contribution process for the “backdoor Roth” IRA for myself and spouse. Takes a few days, but good to have the cash in the Roth account ready to buy more TSLA long term on future “corrections”.

[cwerdna]

Will there be tulips on Mars?

For those who don't get that reference, see https://www.cnbc.com/2017/09/12/jpmorga ... arter.html. This is when cryptocurrencies were just going up and up. I hadn't known about the tulip bulb craze until that was mentioned.

Have you seen the plans for the Tesla Semi on Mars? Solar power is the main power source in space. How many tankers of gas and diesel have been sent by rockets to the International Space Station?

The Tesla car is leading to better battery packs for space and more efficiency of electric motors that are be used on Mars.

Are you conflating two separate companies: Tesla and SpaceX?

Why would you send gasoline and diesel to the ISS? Internal combustion engines require burning of oxygen w/the fuel to provide motive force. You'd be burning up what little oxygen there is in the space station or need to generate it via other means. Would good would an ICE do at the ISS?

[coleafrado]

Have you seen the plans for the Tesla Semi on Mars? Solar power is the main power source in space. How many tankers of gas and diesel have been sent by rockets to the International Space Station?

The Tesla car is leading to better battery packs for space and more efficiency of electric motors that are be used on Mars.

Are you conflating two separate companies: Tesla and SpaceX?

Why would you send gasoline and diesel to the ISS? Internal combustion engines require burning of oxygen w/the fuel to provide motive force. You'd be burning up what little oxygen there is in the space station or need to generate it via other means. Would good would an ICE do at the ISS?

The point Gale is making is that the ISS doesn't run on gas. It runs on electricity (and, inconveniently, hydrazine) - fuels of the future. With Tesla's electric powertrains and huge battery production capacity, they could afford to ship a fully sustainable ground transportation system to Mars on their Starship.

Others have brought up how batteries could store power for electric thrusters, but that's not a particularly convincing argument. Batteries don't have enough energy density to make the delta-v tradeoff work.

[GRA]

ABG:

Tesla prices $2 billion stock offering at $767 a share
Company also reveals the SEC had subpoenaed its financial information

https://www.autoblog.com/2020/02/14/tes ... -subpoena/

. . . Just two weeks ago, CEO Elon Musk said the company had enough cash to fund its capital programs and that it didn't need to raise any more money.

But Tesla is taking advantage of seemingly insatiable demand for its stock. Tesla shares have almost doubled since the start of the year, and it's quadrupled since June.

That demand continued to surge Thursday, even though issuing the additional 2.65 million shares could dilute the value of the 180 million shares now on the market.. Nonetheless, shares closed up another 5%.

In early trading Friday, shares of Tesla Inc. were essentially flat in light trading at around $806.

Tesla also said Thursday that its U.S. revenue fell last year and that securities regulators are scrutinizing its finances.

All of the developments were disclosed in filings with U.S. Securities and Exchange Commission, which in December subpoenaed financial data and contracts, including the company’s financing arrangements.

In a prepared statement, Tesla said Musk will buy $10 million worth of the stock while billionaire board member and Oracle co-founder Larry Ellison will buy shares worth $1 million. . . .

In the Thursday filing, Tesla said underwriters of the share sale have a 30-day option to buy another $300 million in common stock. The company estimated that the net proceeds from the sale would be $2.31 billion if the underwriters exercise the options. . . .

On the company’s fourth-quarter earnings conference call on Jan. 29, Musk was asked about raising capital since the stock had gone up so dramatically.

He replied that the company was spending money as fast as it could spend sensibly, yet it’s still generating cash. “So in light of that, it doesn’t make sense to raise money because we expect to generate cash despite this growth level,” he told analysts.

In a note to investors, Wedbush analyst Daniel Ives called the stock sale a smart move because the shares are in a strong position as electric vehicle demand is starting to reach an inflection point, with China as the main driver.

He also wrote that the sale removes a potential cash shortage down the road. “The bulls (which we agree with) will say this essentially rips the Band-Aid off and takes the doomsday cash crunch scenario some predicted down the road now off the table," Ives wrote.

Tesla also disclosed on Thursday in its annual report that the SEC subpoenaed information in December about the company's financing arrangements but gave no further details. . . .

Also in the annual report, Tesla disclosed that its U.S. revenue fell 15% last year to $12.65 billion, despite record vehicle sales. The U.S. is by far its largest market. But overall revenue rose nearly 15% to $24.58 billion on increases in China, the Netherlands and Norway.

The company said that at the end of last year it had 48,016 employees, 801 fewer than in 2018.

Tesla lost $862 million last year and has never posted an annual profit. But it made $105 million in the fourth quarter. At the end of last year, it had $6.27 billion in cash and equivalents on hand, almost 70% better than at the close of 2018. But its debt grew from $9.4 billion at the end of 2018 to $11.6 billion in December of 2019.

[WetEV]

The future looks bright... If Tesla can become another monopoly.

https://www.vox.com/the-goods/2020/2/18 ... eerleading

... a broader trend that all Americans should be aware of — and angry about. Across industry after industry, sector after sector, power and market share have been consolidated into the hands of a handful of players.

[webb14leafs]

The future looks bright... If Tesla can become another monopoly.

https://www.vox.com/the-goods/2020/2/18 ... eerleading

... a broader trend that all Americans should be aware of — and angry about. Across industry after industry, sector after sector, power and market share have been consolidated into the hands of a handful of players.

That quote is true, but I would say that Tesla is overcoming more monopolistic practices than it is creating. There's a difference between legitimately dominating a market and being a monopoly.

[GaleHawkins]

The future looks bright... If Tesla can become another monopoly.

https://www.vox.com/the-goods/2020/2/18 ... eerleading

... a broader trend that all Americans should be aware of — and angry about. Across industry after industry, sector after sector, power and market share have been consolidated into the hands of a handful of players.

That quote is true, but I would say that Tesla is overcoming more monopolistic practices than it is creating. There's a difference between legitimately dominating a market and being a monopoly.

Tesla is no way a monopoly but is setting standards in auto and space by being a doer.

[WetEV]

That quote is true, but I would say that Tesla is overcoming more monopolistic practices than it is creating. There's a difference between legitimately dominating a market and being a monopoly.

Auto dealers are a good example of where Tesla is overcoming a current monopolistic practice. Yes, the glass is half full.

Automobiles are a market with high barriers to entry, and profits that increase with volume.

https://en.wikipedia.org/wiki/Natural_monopoly

EVs are more so, especially with proprietary charging networks.

[johnlocke]

In any large market there is a tendency toward consolidation into a few strong members at the expense of the smaller players. The larger companies either buy out smaller companies to gain mass or undersell them and drive them out of business using economies of scale. The field narrows down to a few strong companies fighting for market share. Tesla is disruptive in this regard because their product strips customers from a stagnant pool. Those customers are not going back to ICE's. The automobile industry is just starting to wake up to this fact and it scares them to hell. With hundreds of billions of dollars invested in equipment to build ICE's. they face the question of reworking or scrapping much of their equipment and converting to EV production or trying to continue selling an inferior product.

Tesla doesn't have any such problem and is open to new manufacturing techniques and unusual solutions (massive tents, anyone?). They brought nearly all their component manufacturing in-house to reduce costs and improve quality. The Gigafactory is the result of careful engineering and design choices. Tesla will only become a monopoly if old line automobile companies decide not to compete. So far the only company to recognize this is VW. Ford and GM are tentatively sticking their corporate toes in the water but refuse to commit. Nissan had an Idea but never really followed through and now they may be too late and have squandered their lead and reputation in the process.

[cwerdna]

They brought nearly all their component manufacturing in-house to reduce costs and improve quality.

Source? To what level do you define "components"? Let's set aside seats and batteries. Are you telling me they also manufacture their own glass, semiconductors, switch gear (e.g. switch and buttons), resistors, bearings, headlight and taillight assemblies, bulbs, capacitors, struts for the trunk/hatch and frunk, glass, wiring harnesses, struts, power steering racks (including boots, shafts, motors), AC compressors, heaters, hoses, tubes, tires (definitely not), wheels, fabrics, fasteners (e.g. plastic ones, screws, bolts, nuts, etc.)?