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Tesla Says Model 3 on Track as Quarterly Loss Beats Estimates

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Re: Tesla Says Model 3 on Track as Quarterly Loss Beats Estimates

#51

Post by mikeash »

Someone1234 wrote: post #32
mabbo wrote: post #5

People get upset by the 'superhero' status of Elon Musk. Nerds everywhere worship the guy, buy his cars, watch his SpaceX launches. But honestly, let him have it, I say. He's earning it. He's taking huge risks and succeeding where others weren't willing to try.

I'm glad that people look up to someone like that. What I am disappointed by is how his fans react to criticism. There's healthy respect and there's unhealthy worship. When you have a bunch of people who will get really upset due to any criticism that is on the worship side of the coin. Any community with voting arrows (HN/Reddit) suppresses anything negative said (no matter how supportable/well constructed the criti…

Orbital and such are doing great things, but Faraday appears to be a bunch of scammers with no product. Maybe they'll prove me wrong, but until they demonstrate that they have something, I don't see what's wrong with criticizing them.

Re: Tesla Says Model 3 on Track as Quarterly Loss Beats Estimates

#52

Post by charlesdm »

refurb wrote: post #25
paulpauper wrote: post #20

People who lose money shorting Tesla are losing their shirts for the same reason as those who shorted Amazon: cash flow + growth matters more than profitability, PE ratios, or EPS. Tesla's car business is cash flow positive but the quarterly losses are due to infrastructure investments. This is how finance can be more subtle than meets the eye. Tesla's car business is very profitable: Tesla also reported an automotiv…

I see your point, but any company that uses non-GAAP numbers is suspect. Even the gov't is trying to crack down on companies that do it since it invariably is done to make the company look like it's performing better than it is. Gross margin ignores all the costs not directly associated with producing the vehicle (basically COGS). There are plenty of companies with positive gross margin (even under GAAP) that fail.

That doesn't necessarily mean shorting a company just because it uses non-GAAP numbers is a good idea though.

As with anything, if you understand what the non-GAAP numbers represent, it's not a problem. If you don't..

Re: Tesla Says Model 3 on Track as Quarterly Loss Beats Estimates

#53

Post by jaimex2 »

mabbo wrote: post #5

People get upset by the 'superhero' status of Elon Musk. Nerds everywhere worship the guy, buy his cars, watch his SpaceX launches. But honestly, let him have it, I say. He's earning it. He's taking huge risks and succeeding where others weren't willing to try.

The superhero status has nothing to do with it.

Tesla is reaping the rewards for making a good EV and backing it with the right infrastructure, its not rocket science.

If the motor industry had actually not made a half bothered attempt at EVs and actually tried to innovate they would have had similar success.

Re: Tesla Says Model 3 on Track as Quarterly Loss Beats Estimates

#54

Post by gutnor »

mabbo wrote: post #5

People get upset by the 'superhero' status of Elon Musk. Nerds everywhere worship the guy, buy his cars, watch his SpaceX launches. But honestly, let him have it, I say. He's earning it. He's taking huge risks and succeeding where others weren't willing to try.

I guess that because he is painted as real life Iron Man. A sort of engineering genius, personally involved in the technical details of all his business ventures.

He is a brilliant business man with a vision that is refreshing compared to others. He deserves a superhero status for that. Genius engineer ? That's going a bit too far and I guess that rubs the people you mentioned the wrong way.

Re: Tesla Says Model 3 on Track as Quarterly Loss Beats Estimates

#55

Post by austenallred »

paulpauper wrote: post #20

People who lose money shorting Tesla are losing their shirts for the same reason as those who shorted Amazon: cash flow + growth matters more than profitability, PE ratios, or EPS. Tesla's car business is cash flow positive but the quarterly losses are due to infrastructure investments. This is how finance can be more subtle than meets the eye. Tesla's car business is very profitable: Tesla also reported an automotiv…

I put 100% of my net worth in TSLA when it was trading at $180 a couple months ago http://www.marketwatch.com/story/elon-musk-to-the-guy-who-in....

I'm already up 40%, and I'm holding (though not adding to it as my net worth grows). Such an obvious, incredible company that Wall Street will undervalue until the end of time.

(For the record: I don't recommend doing this. I am in a unique situation where I can own the risk and earn out of it quickly if it goes to zero.)

Re: Tesla Says Model 3 on Track as Quarterly Loss Beats Estimates

#56

Post by debt »

austenallred wrote: post #55
paulpauper wrote: post #20

People who lose money shorting Tesla are losing their shirts for the same reason as those who shorted Amazon: cash flow + growth matters more than profitability, PE ratios, or EPS. Tesla's car business is cash flow positive but the quarterly losses are due to infrastructure investments. This is how finance can be more subtle than meets the eye. Tesla's car business is very profitable: Tesla also reported an automotiv…

I put 100% of my net worth in TSLA when it was trading at $180 a couple months ago http://www.marketwatch.com/story/elon-musk-to-the-guy-who-in... . I'm already up 40%, and I'm holding (though not adding to it as my net worth grows). Such an obvious, incredible company that Wall Street will undervalue until the end of time. (For the record: I don't recommend doing this. I am in a unique situation where I can own the…

uhhhhh to anyone reading this: the above is a terrible idea

Re: Tesla Says Model 3 on Track as Quarterly Loss Beats Estimates

#57

Post by austenallred »

debt wrote: post #56
austenallred wrote: post #55

Earlier quoted context omitted.

I put 100% of my net worth in TSLA when it was trading at $180 a couple months ago http://www.marketwatch.com/story/elon-musk-to-the-guy-who-in... . I'm already up 40%, and I'm holding (though not adding to it as my net worth grows). Such an obvious, incredible company that Wall Street will undervalue until the end of time. (For the record: I don't recommend doing this. I am in a unique situation where I can own the…

uhhhhh to anyone reading this: the above is a terrible idea

Definitely not something any sane money manager would recommend.

I accept the risk. I could go to zero and crawl my way back pretty quickly.

Re: Tesla Says Model 3 on Track as Quarterly Loss Beats Estimates

#59

Post by praneshp »

austenallred wrote: post #55
paulpauper wrote: post #20

People who lose money shorting Tesla are losing their shirts for the same reason as those who shorted Amazon: cash flow + growth matters more than profitability, PE ratios, or EPS. Tesla's car business is cash flow positive but the quarterly losses are due to infrastructure investments. This is how finance can be more subtle than meets the eye. Tesla's car business is very profitable: Tesla also reported an automotiv…

I put 100% of my net worth in TSLA when it was trading at $180 a couple months ago http://www.marketwatch.com/story/elon-musk-to-the-guy-who-in... . I'm already up 40%, and I'm holding (though not adding to it as my net worth grows). Such an obvious, incredible company that Wall Street will undervalue until the end of time. (For the record: I don't recommend doing this. I am in a unique situation where I can own the…

If anyone reading this is new, please don't do this.

Re: Tesla Says Model 3 on Track as Quarterly Loss Beats Estimates

#60

Post by refurb »

charlesdm wrote: post #52
refurb wrote: post #25

Earlier quoted context omitted.

I see your point, but any company that uses non-GAAP numbers is suspect. Even the gov't is trying to crack down on companies that do it since it invariably is done to make the company look like it's performing better than it is. Gross margin ignores all the costs not directly associated with producing the vehicle (basically COGS). There are plenty of companies with positive gross margin (even under GAAP) that fail.

That doesn't necessarily mean shorting a company just because it uses non-GAAP numbers is a good idea though. As with anything, if you understand what the non-GAAP numbers represent, it's not a problem. If you don't..

That doesn't necessarily mean shorting a company just because it uses non-GAAP numbers is a good idea though.

That would be an interesting investing thesis to test. You are correct, non-GAAP numbers don't mean a company is hiding something, but it does make you ask why they felt the need to use non-standard accounting principles (the answer is it makes them look better).

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