Numbers:
- 1Q Adj Loss/Shr $3.35, Est. Loss/Shr $3.41
- 1Q Rev. $3.41B, Est. $3.32B
- Tesla reported 19.7% gross margins for Q1, beating Wall Street estimates. Model S and Model X are now above 25%,
- Cash burn in the quarter looks to be $1.05 billion
Misc:
- Customer deposits up to $984 million from $854 million
- says it will reach full GAAP profitability in Q3 and
- company had $3.2 billion in cash on hand.
- says it can get to 5,000 Model 3 units a week in about two months.
- Solar City seems done as a consumer product, After installing just 87 megawatts in the fourth quarter, it deployed even less in 1Q -- 76 megawatts.
- Tesla's 5.3% bonds are unchanged at 89 cents on the dollar,
- Tesla will not offer a leasing option on the Model 3 this year. Translation, Telsa needs cash and needs it right now in a big way.
- "Our Model 3 general assembly line consists of fewer than 50 steps, which is about 70% less than conventional assembly lines. All Model 3 vehicles use only one standard body frame, down from more than 80 for Model S, a wiring harness that has 50% less mass than average vehicles, and a fraction of the number of controllers, connectors and CPUs."
- "At this stage, we are expecting total 2018 capex to be slightly below $3 billion, which is below the total 2017 level of $3.4 billion." Open Question... how do you ramp up car manufacturing from 2500 to 5000 to 10,000 per week and reduce CapEx at the same time. Seems like eithr Capex estimates will blow out or prodcution will but both can't coexists. Check bond yields....
- Tesla spent $146 million on interest payments in 4Q -- roughly the same interest expense as GM, a company with approximately 10 times more revenue. Interest expenses rose to $149.5 million last quarter.
In case you ever feel like its a waste of time, I, for one, appreciate your posts with notes + numbers.
Its so easy for conversations about these things to get derailed about, oh, I dunno, flying cars, that its great having your post with hard numbers there to keep the discussion grounded.
Its great that companies have big dreams and grand visions, but how will it work out in the numbers?
”how do you ramp up car manufacturing from 2500 to 5000 to 10,000 per week and reduce CapEx at the same time.”
That could be possible if the production line for the larger production rates is mostly done, and all that’s needed is fine-tuning robots, training personnel, and starting to run the factory 24/7.
I also see the quarterly cash burn of $1.054 billion, and also don't understand how the company could reduce capex by $0.4 billion this year at the same time it aggressively ramps up Model 3 production... seems optimistic.
Looks like Tesla will need to raise more cash fairly soon.
>- "Our Model 3 general assembly line consists of fewer than 50 steps, which is about 70% less than conventional assembly lines. All Model 3 vehicles use only one standard body frame, down from more than 80 for Model S, a wiring harness that has 50% less mass than average vehicles, and a fraction of the number of controllers, connectors and CPUs."
There is a lot to unpack in this statement...
I find it hard to believe there were 80 unique body models for the model S. The S has 3 major trims and about 3 major options that could even theoretically change things like wiring harnesses or body panels. This seems to me another Elon overstatement (air resistance and heat and robots oh my...).
also, re his later subcontractors comment. I have been given the impression here and by industry friends that subcontractors are increasingly unwilling to work with them.
How do you understand the lease-vehicles line in the balance sheet? From $4.1bn down to $2.3bn. I understand there's some accounting change, but I don't see where the other side of that missing $1.8bn shows up.
It seems like there’s a disconnect between expected revenue and the stock price. If people took the expected revenue from analysts seriously then they’d have to believe that Tesla was nearly insolvent.
The talent that Tesla has to spin bad results is amazing.
"In its letter to investors, Tesla provided some updates to its Model 3 production, noting it hit 2,270 cars produced per week for three straight weeks in April."
Seems pretty great, 2270 cars for three straight weeks! Looks like Tesla's production is going steady.
However, in its early March press release about the Model 3 production, Tesla was still saying something else:
"The Model 3 output increased exponentially, representing a fourfold increase over last quarter. This is the fastest growth of any automotive company in the modern era. If this rate of growth continues, it will exceed even that of Ford and the Model T."
Exponential production increase! .. which they now say abruptly stopped after the press release.
Yeah there comes a point where you stop rooting for the little guy doing little-guy marketing gimmicks and realise it's a billion dollar company making intentionally disingenuous statements.
The Model T reached around 70k per week. Tesla has no business referencing it. It's like saying I got a promotion growing my salary from $50k to $80k this year, a growth rate of income that, if continues, will exceed even that of bill gates. It's a joke.
It was... pretty strange. This is being pegged as the reason for the 5% drop in after hours trading despite beating estimates. Some details, and a youtube link to a portion of the call here:
In the quarter ended March 31, Tesla's net loss widened to $784.6 million, or $4.19 per share, from a loss of $397.2 million, or $2.04 per share, a year ago.
Revenue rose to $3.41 billion from $2.7 billion a year ago, and outpaced analysts estimates of $3.22 billion.
It's deceptive to list the revenue in dollars and the loss in dollars per share. Reality is a loss of $785 million on $3.41 billion revenue.
"Tesla also expects to achieve full GAAP profitability in Q3"
That would be a massive hit at skeptics as Q3 is almost around the corner (I wasn't even expecting it to happen this year), but even being a fanboy myself I still doubt such bold statement.
I hope they do become profitable, but I'm skeptical they will.
1) Their losses are growing, not shrinking. From March 2017 to now, they lost $330M, $336M, $619M, $675M, and $785M. Maybe they hit a tipping point and there is an abrupt change, but it seems like the more natural trajectory would be for losses to become smaller and then turn into profits.
Tesla is a really cool company, but it's hard to see a future where they justify their share price. Let's say that Tesla becomes the next Toyota 15 years from now. Toyota is only worth $213B. So, the kinda max value for Tesla is around 4x their current price. So, under really rosy conditions, Tesla appreciates at 12% per year over the next 15 years. That's not bad, but the likelihood that Tesla is the next Toyota is very small.
Let's say that Tesla is incredibly successful and becomes the next Volkswagen, Daimler, or BMW (the #2, 3, and 4 auto makers by market cap). They'd be a $106B, $85B, or $73B company. That doesn't leave much for price appreciation over their current $51B market cap.
Maybe Tesla can make a company that's way more profitable per vehicle and sell so many vehicles. But that's a bit of a moon-shot.
It seems more likely that Tesla will become a company like Subaru ($26B), Mazda ($8B), Nissan ($43B), Ford ($44B), Hyundai Motor ($40B), Fiat Chrysler ($34B), Renault ($32B), PSA Peugeot Citroën ($22B), Suzuki Motor ($26B), GM ($51B), or Honda ($60B). Those are all very successful auto companies. If Tesla becomes the next Mazda 15 years from now, that will be incredibly bad for investors. Basically, if Tesla doesn't become the next Toyota, it seems hard to believe Tesla won't underperform the market by a lot.
It's possible that Tesla will become the next Toyota, but unlikely. Comparing Tesla's market cap with that of most auto manufacturers makes you realize that investing in Tesla isn't just betting that Tesla will become a great volume car company like Mazda. They have to become the car company.
When investing, it's also important to note that money later is less valuable than money now and account for risk. Tesla is being priced like it's making $6B/year today and it's future is certain.
Beyond that, is the automotive industry long for this world? People are re-urbanizing and city traffic is only getting worse. Self-driving vehicles will mean that being driven unlimited places might fall to $50-100/mo which is significantly less than the $400+/mo of car payments, insurance, gas, parking, maintenance, etc. Why should I spend $631/mo for a $35,000 car plus insurance, gas, parking, maintenance when I can just get driven around for a fraction of that cost? Today, Uber's help is more limited since the human driver costs a lot of money per mile. If that future comes to pass, there will be a lot fewer cars manufactured and bought which limits Tesla's value.
If an autonomous car is serving 25 people a day, that's a lot fewer vehicles that need to be bought. World vehicle production is around 90M/year and Toyota and Volkswagen are 10M of that each. If the demand for vehicles falls to 4% of its current demand, that's only 3.6M vehicles per year. Even if Tesla makes 100% of those vehicles, they don't come close to being the next Toyota or Volkswagen. Even if an autonomous vehicle only serves 10 people a day, that cuts the vehicle market down to 9M. Even if an autonomous vehicle can only serve 4 people a day, that cuts the market to 22.5M. The future market for vehicles might be pretty small compared to the current one and so even if Tesla hits a Toyota or Volkswagen-like 10% of the market, it might not be a large market.
And self-driving services are likely to have stiff price competition. Unlike an Uber competitor that has the network effects of having drivers already signed up, it's relatively cheap to blanket a city with self-driving vehicles. $20,000/mo isn't a huge run rate to to buy 50 vehicles at $400/mo and that will let you place a vehicle within a short distance of everyone in a city like San Francisco (47 square miles). You could position them so that they're usually less than half a mile away to pick you up. $20,000/mo isn't a huge run rate to get your service started and you can buy more vehicles as you get riders. So, even if you think that Tesla might be that self-driving network and will make profits that way, I think it's more likely that the space will have a lot of competition that will push margins down. Waymo and GM/Cruze are well on their way. Nissan and Toyota are expecting to enter the game in a few years. Uber wants to be in this space.
It just seems like Tesla is more likely to become Mazda than Toyota and that the auto industry might be facing a large market-shrinking threat in self-driving cars. As such, it's hard (for me) to look at Tesla's market value and see the potential for a lot of appreciation over the long term. They're already worth more than most successful auto makers.
At around $1B negative cash flow a quarter, with a little over $3B in the bank, they _have_ to do this. I'm not a bond expert, but the debt markets seem tapped out for them, and another stock offering wouldn't look so good either (but is likely).
The skeptics should be saying, "what a coincidence that they project to achieve profitability _just_ before they go bankrupt."
That would be amazing if they did achieve GAAP profitably, considering that GAAP earnings include stock-based compensation, non-operating expenses, and R&D expense.
OTOH, GAAP because generally requires R&D to be expensed in the period incurred, Tesla may really be saying that R&D expenditures are expected to drop to near $0 in Q3 (R&D being their biggest non-operating expense). That should worry investors if that's really what's happening.
"Tesla also expects to achieve full GAAP profitability in Q3"
This is essentially saying "we don't expect to go insolvent". But no company would announce that they expect to go insolvent, so the statement is mostly meaningless.
Interestingly, I think nearly all people in Ontario on the Tesla waitlist got their option to buy cars in the last few weeks. I believe it is because the likely new provincial leader is going to revoke a huge tax break to electric cars, so Telsa is trying to get all of its Ontario customers to buy in before the rebate is gone.
I know 3 people on the waitlist who just all of a sudden got told they can now buy a car immediately. That is likely not a coincidence.
Has America fallen out of love with the sedan? Even the Tesla version?
Ford announced they are not going to be selling sedans in America, Mustang excepted. GM are ditching the Bolt (or Volt?) and FCA aren't making a lot of regular cars in the USA.
From now on monster SUVs powered by oil is what the future is in America, thanks to fracking and easy credit. Can't wait for the invasion of affordable Chinese electric cars.
This was essentially what happened in late 90s/early 00's, and the subsequent rise in oil prices and '08 recession led to the bankruptcy of American auto companies that had stopped producing fuel efficient cars. The taxpayer-funded bailout included a stipulation that increased their fuel economy standards; that part of the deal is now being reversed by the current administration.
This is one thing that is strongly in Tesla's favor. A pivot to SUVs and trucks has essentially zero geopolitical/oilprice risk, unlike every other domestic automobile maker which is gambling big time that gas prices don't continue to increase. I'm not sure Ford (focusing nearly exclusively on trucks) could survive a sustained $4/gallon gas price again, let alone whatever the gas price would be if the "$300 per barrel" scenario [0] happened (even for just a few months).
Gas prices are about $1/gallon higher than they were when the Model 3 was unveiled and Tesla got a huge backlog of orders. That's about $5000 in additional gas savings over the life of the vehicle (some of that in the form of residual used value). OPEC is still cutting back, and they want oil at about $80/barrel, up from the current ~$65. Gas prices arguably still haven't reached equilibrium for the current price of oil, and continued under-investment in oil capacity during the last slump could lead to significantly higher oil prices going forward, particularly if the global economy stays fairly strong. This is incredibly good for Tesla.
So I think Tesla has more going for it than a lot of people give credit. Theoretically, other car makers could've switched to electric tech, too (it's fairly simple, although it takes investment), but just about the only car makers who are TRULY serious about it (versus talking about it) are in China. Certainly when compared to other domestic car makers.
I find it strange there hasn't been mention of what's being reported on here [1] in this thread. Anyone who actually paid attention to the earnings call care to comment?
I didn't hear the call but that article has a pretty clear agenda given how many shots it took. That was not a news story, it was a hit piece editorial. Furthermore only MarketWatch is reporting on it.
If you look at the financial statement their cash flow used by operation went up 4x from the same quarter last year. Their margins on their cars are getting worse, I guess probably due to the model 3. Maybe Musk would have been better off just focusing on their high end cars and get all the processes ironed out.
[+] [-] chollida1|8 years ago|reply
- 1Q Rev. $3.41B, Est. $3.32B
- Tesla reported 19.7% gross margins for Q1, beating Wall Street estimates. Model S and Model X are now above 25%,
- Cash burn in the quarter looks to be $1.05 billion
Misc:
- Customer deposits up to $984 million from $854 million
- says it will reach full GAAP profitability in Q3 and
- company had $3.2 billion in cash on hand.
- says it can get to 5,000 Model 3 units a week in about two months.
- Solar City seems done as a consumer product, After installing just 87 megawatts in the fourth quarter, it deployed even less in 1Q -- 76 megawatts.
- Tesla's 5.3% bonds are unchanged at 89 cents on the dollar,
- Tesla will not offer a leasing option on the Model 3 this year. Translation, Telsa needs cash and needs it right now in a big way.
- "Our Model 3 general assembly line consists of fewer than 50 steps, which is about 70% less than conventional assembly lines. All Model 3 vehicles use only one standard body frame, down from more than 80 for Model S, a wiring harness that has 50% less mass than average vehicles, and a fraction of the number of controllers, connectors and CPUs."
- "At this stage, we are expecting total 2018 capex to be slightly below $3 billion, which is below the total 2017 level of $3.4 billion." Open Question... how do you ramp up car manufacturing from 2500 to 5000 to 10,000 per week and reduce CapEx at the same time. Seems like eithr Capex estimates will blow out or prodcution will but both can't coexists. Check bond yields....
- Tesla spent $146 million on interest payments in 4Q -- roughly the same interest expense as GM, a company with approximately 10 times more revenue. Interest expenses rose to $149.5 million last quarter.
[+] [-] dharmon|8 years ago|reply
Its so easy for conversations about these things to get derailed about, oh, I dunno, flying cars, that its great having your post with hard numbers there to keep the discussion grounded.
Its great that companies have big dreams and grand visions, but how will it work out in the numbers?
[+] [-] Someone|8 years ago|reply
That could be possible if the production line for the larger production rates is mostly done, and all that’s needed is fine-tuning robots, training personnel, and starting to run the factory 24/7.
[+] [-] djrogers|8 years ago|reply
This doesn't necesarily follow, as it'd be fairly straightforward to run the leases through a third party who would give Tesla cash.
[+] [-] cs702|8 years ago|reply
Looks like Tesla will need to raise more cash fairly soon.
[+] [-] avs733|8 years ago|reply
There is a lot to unpack in this statement...
I find it hard to believe there were 80 unique body models for the model S. The S has 3 major trims and about 3 major options that could even theoretically change things like wiring harnesses or body panels. This seems to me another Elon overstatement (air resistance and heat and robots oh my...).
also, re his later subcontractors comment. I have been given the impression here and by industry friends that subcontractors are increasingly unwilling to work with them.
[+] [-] sysk|8 years ago|reply
Can anyone explain this like I'm 5?
[+] [-] mrfusion|8 years ago|reply
[+] [-] kyleblarson|8 years ago|reply
[+] [-] danohu|8 years ago|reply
[+] [-] gcb0|8 years ago|reply
[+] [-] rdl|8 years ago|reply
[+] [-] empath75|8 years ago|reply
[+] [-] bhouston|8 years ago|reply
[+] [-] misja111|8 years ago|reply
"In its letter to investors, Tesla provided some updates to its Model 3 production, noting it hit 2,270 cars produced per week for three straight weeks in April."
Seems pretty great, 2270 cars for three straight weeks! Looks like Tesla's production is going steady. However, in its early March press release about the Model 3 production, Tesla was still saying something else:
"The Model 3 output increased exponentially, representing a fourfold increase over last quarter. This is the fastest growth of any automotive company in the modern era. If this rate of growth continues, it will exceed even that of Ford and the Model T."
Exponential production increase! .. which they now say abruptly stopped after the press release.
[+] [-] IkmoIkmo|8 years ago|reply
The Model T reached around 70k per week. Tesla has no business referencing it. It's like saying I got a promotion growing my salary from $50k to $80k this year, a growth rate of income that, if continues, will exceed even that of bill gates. It's a joke.
[+] [-] krrrh|8 years ago|reply
https://edge.media-server.com/m6/p/nwvzygvo
It was... pretty strange. This is being pegged as the reason for the 5% drop in after hours trading despite beating estimates. Some details, and a youtube link to a portion of the call here:
https://www.zerohedge.com/news/2018-05-02/musk-meltdown-tesl...
[+] [-] unknown_apostle|8 years ago|reply
[+] [-] Animats|8 years ago|reply
In the quarter ended March 31, Tesla's net loss widened to $784.6 million, or $4.19 per share, from a loss of $397.2 million, or $2.04 per share, a year ago.
Revenue rose to $3.41 billion from $2.7 billion a year ago, and outpaced analysts estimates of $3.22 billion.
It's deceptive to list the revenue in dollars and the loss in dollars per share. Reality is a loss of $785 million on $3.41 billion revenue.
[+] [-] traek|8 years ago|reply
It's just convention. Earnings per share (EPS) is a very commonly used metric, sales per share much less so.
[+] [-] caio1982|8 years ago|reply
That would be a massive hit at skeptics as Q3 is almost around the corner (I wasn't even expecting it to happen this year), but even being a fanboy myself I still doubt such bold statement.
[+] [-] mdasen|8 years ago|reply
1) Their losses are growing, not shrinking. From March 2017 to now, they lost $330M, $336M, $619M, $675M, and $785M. Maybe they hit a tipping point and there is an abrupt change, but it seems like the more natural trajectory would be for losses to become smaller and then turn into profits.
2) Tesla has said they'd be profitable before. https://www.reuters.com/article/us-tesla-results/tesla-expec...
Tesla is a really cool company, but it's hard to see a future where they justify their share price. Let's say that Tesla becomes the next Toyota 15 years from now. Toyota is only worth $213B. So, the kinda max value for Tesla is around 4x their current price. So, under really rosy conditions, Tesla appreciates at 12% per year over the next 15 years. That's not bad, but the likelihood that Tesla is the next Toyota is very small.
Let's say that Tesla is incredibly successful and becomes the next Volkswagen, Daimler, or BMW (the #2, 3, and 4 auto makers by market cap). They'd be a $106B, $85B, or $73B company. That doesn't leave much for price appreciation over their current $51B market cap.
Maybe Tesla can make a company that's way more profitable per vehicle and sell so many vehicles. But that's a bit of a moon-shot.
It seems more likely that Tesla will become a company like Subaru ($26B), Mazda ($8B), Nissan ($43B), Ford ($44B), Hyundai Motor ($40B), Fiat Chrysler ($34B), Renault ($32B), PSA Peugeot Citroën ($22B), Suzuki Motor ($26B), GM ($51B), or Honda ($60B). Those are all very successful auto companies. If Tesla becomes the next Mazda 15 years from now, that will be incredibly bad for investors. Basically, if Tesla doesn't become the next Toyota, it seems hard to believe Tesla won't underperform the market by a lot.
It's possible that Tesla will become the next Toyota, but unlikely. Comparing Tesla's market cap with that of most auto manufacturers makes you realize that investing in Tesla isn't just betting that Tesla will become a great volume car company like Mazda. They have to become the car company.
When investing, it's also important to note that money later is less valuable than money now and account for risk. Tesla is being priced like it's making $6B/year today and it's future is certain.
Beyond that, is the automotive industry long for this world? People are re-urbanizing and city traffic is only getting worse. Self-driving vehicles will mean that being driven unlimited places might fall to $50-100/mo which is significantly less than the $400+/mo of car payments, insurance, gas, parking, maintenance, etc. Why should I spend $631/mo for a $35,000 car plus insurance, gas, parking, maintenance when I can just get driven around for a fraction of that cost? Today, Uber's help is more limited since the human driver costs a lot of money per mile. If that future comes to pass, there will be a lot fewer cars manufactured and bought which limits Tesla's value.
If an autonomous car is serving 25 people a day, that's a lot fewer vehicles that need to be bought. World vehicle production is around 90M/year and Toyota and Volkswagen are 10M of that each. If the demand for vehicles falls to 4% of its current demand, that's only 3.6M vehicles per year. Even if Tesla makes 100% of those vehicles, they don't come close to being the next Toyota or Volkswagen. Even if an autonomous vehicle only serves 10 people a day, that cuts the vehicle market down to 9M. Even if an autonomous vehicle can only serve 4 people a day, that cuts the market to 22.5M. The future market for vehicles might be pretty small compared to the current one and so even if Tesla hits a Toyota or Volkswagen-like 10% of the market, it might not be a large market.
And self-driving services are likely to have stiff price competition. Unlike an Uber competitor that has the network effects of having drivers already signed up, it's relatively cheap to blanket a city with self-driving vehicles. $20,000/mo isn't a huge run rate to to buy 50 vehicles at $400/mo and that will let you place a vehicle within a short distance of everyone in a city like San Francisco (47 square miles). You could position them so that they're usually less than half a mile away to pick you up. $20,000/mo isn't a huge run rate to get your service started and you can buy more vehicles as you get riders. So, even if you think that Tesla might be that self-driving network and will make profits that way, I think it's more likely that the space will have a lot of competition that will push margins down. Waymo and GM/Cruze are well on their way. Nissan and Toyota are expecting to enter the game in a few years. Uber wants to be in this space.
It just seems like Tesla is more likely to become Mazda than Toyota and that the auto industry might be facing a large market-shrinking threat in self-driving cars. As such, it's hard (for me) to look at Tesla's market value and see the potential for a lot of appreciation over the long term. They're already worth more than most successful auto makers.
[+] [-] dharmon|8 years ago|reply
The skeptics should be saying, "what a coincidence that they project to achieve profitability _just_ before they go bankrupt."
[+] [-] gamblor956|8 years ago|reply
OTOH, GAAP because generally requires R&D to be expensed in the period incurred, Tesla may really be saying that R&D expenditures are expected to drop to near $0 in Q3 (R&D being their biggest non-operating expense). That should worry investors if that's really what's happening.
[+] [-] ucaetano|8 years ago|reply
This is essentially saying "we don't expect to go insolvent". But no company would announce that they expect to go insolvent, so the statement is mostly meaningless.
[+] [-] adrianratnapala|8 years ago|reply
Doesn't Q3 happen every year?
[+] [-] Jdam|8 years ago|reply
[+] [-] bhouston|8 years ago|reply
I know 3 people on the waitlist who just all of a sudden got told they can now buy a car immediately. That is likely not a coincidence.
[+] [-] Theodores|8 years ago|reply
Has America fallen out of love with the sedan? Even the Tesla version?
Ford announced they are not going to be selling sedans in America, Mustang excepted. GM are ditching the Bolt (or Volt?) and FCA aren't making a lot of regular cars in the USA.
From now on monster SUVs powered by oil is what the future is in America, thanks to fracking and easy credit. Can't wait for the invasion of affordable Chinese electric cars.
[+] [-] plaidfuji|8 years ago|reply
[+] [-] Robotbeat|8 years ago|reply
Gas prices are about $1/gallon higher than they were when the Model 3 was unveiled and Tesla got a huge backlog of orders. That's about $5000 in additional gas savings over the life of the vehicle (some of that in the form of residual used value). OPEC is still cutting back, and they want oil at about $80/barrel, up from the current ~$65. Gas prices arguably still haven't reached equilibrium for the current price of oil, and continued under-investment in oil capacity during the last slump could lead to significantly higher oil prices going forward, particularly if the global economy stays fairly strong. This is incredibly good for Tesla.
So I think Tesla has more going for it than a lot of people give credit. Theoretically, other car makers could've switched to electric tech, too (it's fairly simple, although it takes investment), but just about the only car makers who are TRULY serious about it (versus talking about it) are in China. Certainly when compared to other domestic car makers.
[0] http://www.businessinsider.com/300-oil-is-not-impossible-say...
[+] [-] danans|8 years ago|reply
The Volt PHEV might be discontinued in 2020 but that makes sense if increasing battery capacity makes PHEVs moot. They are a bridge technology.
GM is supposedly planning to increase production of the pure Electric Bolt:
https://www.reuters.com/article/us-gm-autos/gm-plans-to-expa...
[+] [-] newnewpdro|8 years ago|reply
[1] https://www.marketwatch.com/story/elon-musk-acted-like-a-jer...
[+] [-] jhall1468|8 years ago|reply
[+] [-] samfisher83|8 years ago|reply
If you look at the financial statement their cash flow used by operation went up 4x from the same quarter last year. Their margins on their cars are getting worse, I guess probably due to the model 3. Maybe Musk would have been better off just focusing on their high end cars and get all the processes ironed out.
[+] [-] ucaetano|8 years ago|reply
Tesla would never become a mainstream car maker focusing only on high-end cars, and would not justify the market cap.
[+] [-] unknown|8 years ago|reply
[deleted]
[+] [-] paulcole|8 years ago|reply
[+] [-] SirLJ|8 years ago|reply