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Tesla Plunges After a Conference Call

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Re: Tesla Plunges After a Conference Call

#371

Post by hndamien »

CPLX wrote: post #103
thaumaturgy wrote: post #36

Earlier quoted context omitted.

I'm not defending Elon's behavior here, but speaking more generally: if you're in a place where you need to maintain maximum productivity for a while, because a deadline has slipped for example, meetings can turn into a massive time sink if you don't act like a total nazi during them. In so many meetings, people just want to hear themselves talk, whether to offer some opinion, reiterate some point, or ask some useles…

You know Elon doesn't actually like turn wrenches and connect wiring harnesses right? Talking on the phone with investors and making sure the company maintains creditworthiness is his actual core job.

Given that he was so cavalier here that has these noses bent out of shape, and that he was tweeting April fools jokes about being bankrupt, could it be that he is actually pretty confident in Tesla's credit worthiness and that capital raising will not be required? Seems like a pretty dumb bluff otherwise - particularly on April fools.

Re: Tesla Plunges After a Conference Call

#372

Post by manicdee »

kentm wrote: post #331
gfody wrote: post #236

Earlier quoted context omitted.

In the grand scheme of things figuring out how to make model3's faster than they can sell them is a boring problem for Musk and I could imagine how frustrating it must be to have all the banks freaking out as if they're going to miss a fleeting opportunity to sell a bunch of cars. It's like when Nikola Tesla was trying to build worldwide wireless telegraphy but J.P. Morgan just wanted him to make fluorescent lights.…

Whether a problem is interesting is orthogonal to whether its important. This is an earnings call and scaling up production is actually an important issue to address for the company's long-term viability.

The question wasn’t about scaling up production. It was a very specific question about trees when Tesla doesn’t really know what the forest looks like yet.

Re: Tesla Plunges After a Conference Call

#373

Post by manicdee »

mwfunk wrote: post #285
gfody wrote: post #272

Earlier quoted context omitted.

but thousands of model3's are being produced and delivered every week. at this point it's just a matter of time for reservations to be filled and velocity will ramp up naturally as they improve their process. the investors panicking because velocity isn't doubled yesterday doesn't seem like long term thinking.

...that’s not what investors are panicking over? You know that right?

The investors are panicking because Elon didn’t answer two pointless questions.

Perhaps they need to ask better questions next time?

Re: Tesla Plunges After a Conference Call

#374

Post by Clubber »

thrillgore wrote: post #81
vkou wrote: post #32

Earlier quoted context omitted.

Asking how he is going to reign in capital expenses, when their burn rate will drain them of cash in 8 months is not being spiteful. It's called being an investor. Refusing to answer that question, is either being spiteful, or disingenuous. It's a bit of a red flag.

And refusing to answer is when I, as an investor, would begin looking at options available to me to change management.

Just sell your shares big guy.

Re: Tesla Plunges After a Conference Call

#375

Post by manicdee »

frgtpsswrdlame wrote: post #49
thaumaturgy wrote: post #36

Earlier quoted context omitted.

I'm not defending Elon's behavior here, but speaking more generally: if you're in a place where you need to maintain maximum productivity for a while, because a deadline has slipped for example, meetings can turn into a massive time sink if you don't act like a total nazi during them. In so many meetings, people just want to hear themselves talk, whether to offer some opinion, reiterate some point, or ask some useles…

>meetings can turn into a massive time sink if you don't act like a total nazi during them. Which would explain Elon ending the conference call. Instead he spent 15-20 minutes taking open-ended questions from a youtuber with a TSLA position of 56 shares. >If your goal is, "end this meeting as quickly as possible so I can start fixing the things that need fixing" For Elon the 'things that need fixing' are exactly what…

If those are actually the things he is working on then perhaps there is no answer to give?

How long is your piece of string?

Well this morning it was three metres but then we doubled it and it looks like that was too much so come back tomorrow and we will let you know.

Re: Tesla Plunges After a Conference Call

#376

Post by xkjkls »

kneel wrote: post #368
xkjkls wrote: post #365

Earlier quoted context omitted.

I don't think "answering basic questions about the financial health of your company" really should be considered "brown nosing", but to each their own. And it's not that simple that he can just raise debt or equity if Tesla's stock starts tanking. There aren't billions of dollars out there to be invested or loaned to money losing companies whose stock price is tanking. If come Q4 Tesla is having to raise money at a l…

>I don't think "answering basic questions about the financial health of your company" really should be considered "brown nosing", but to each their own. Tesla has been thoroughly analyzed every which way, moreso than other companies. Really there is no end to the amount of info that Wall St wants, everyone is trying to make a buck and wall st senses the hype. >There aren't billions of dollars out there to be invested…

Tesla’s reporting leaves a lot to be desired.

Why wouldn’t Musk release a detailed plan of what is going to materially change in their production goals and capital expenditures over the next sixth months in order to finance their debt? Explain the process for how the make their projections and pronouncements? Explain why it is prudent to invest in multiple new models and production lines when his company is burning through $4 billion a year and can’t meet current production targets? Why doesn’t he explain how many of the 500,000 Model 3 deposits remain, given that at current production rates that will take almost a decade to meet? Why doesn’t he provide monthly sales figures like every other automaker?

> Tesla is public. Yes there is. Just depends on whether you can stomach the risk.

You understand that greater risk necessitate the possibility of greater return, right? What interest rate is it going to have to be paying on debt it raises? TSLA bonds are already at 8% interest, in junk bond territory.

If financials deteriorate further is he paying 10%? 12%?

In that situation how much of Tesla’s revenue is just going to be eaten up paying interest on the $10 billion in debt it currently has, plus an additional capital raise? That makes the cash flow issues even worse.

If Tesla raises equity, how much of a hair cut does the enterprise value take? With the amount of debt it currently has, it doesn’t take much before you start thinking insolvency.

Re: Tesla Plunges After a Conference Call

#377

Post by philwelch »

mikeash wrote: post #283
philwelch wrote: post #233

Earlier quoted context omitted.

That’s not the standard etymology, is it? I always thought that a con game was called a “confidence game” because the perpetrator is gaining the “confidence” of the mark.

Yes, exactly. These are all synonyms. People use “con” instead of “confidence game” just to save skme syllables, not to impart a different meaning.

Although abbreviations, as Orwell pointed out, do tend to assume their own connotations—e.g. “Comintern” vs. “Communist International”, or more blatantly, “Nazi” vs. “National Socialist”.

Re: Tesla Plunges After a Conference Call

#379

Post by danso »

manicdee wrote: post #375
frgtpsswrdlame wrote: post #49

Earlier quoted context omitted.

>meetings can turn into a massive time sink if you don't act like a total nazi during them. Which would explain Elon ending the conference call. Instead he spent 15-20 minutes taking open-ended questions from a youtuber with a TSLA position of 56 shares. >If your goal is, "end this meeting as quickly as possible so I can start fixing the things that need fixing" For Elon the 'things that need fixing' are exactly what…

If those are actually the things he is working on then perhaps there is no answer to give? How long is your piece of string? Well this morning it was three metres but then we doubled it and it looks like that was too much so come back tomorrow and we will let you know.

Then perhaps Musk could be honest and state explicitly that there is no answer. Instead, he chose to respond in a fashion that has multiple interpretations:

- There is no answer

- Musk does not know the answer

- Musk does not want to admit he does not know the answer

- Musk does not want the answer to be known

Re: Tesla Plunges After a Conference Call

#380

Post by erikpukinskis »

Avshalom wrote: post #350
jek3939 wrote: post #341

Earlier quoted context omitted.

And yet none of them are landing autonomous reusable rocket modules Of all the 100% electric cars on road, he has two in the top 5 Who else has been pushing battery storage and solar systems that aren’t ugly af and simply made of old parts glued together in parallel? All these other experts with experience can’t seem to hang with Johnny come lately. Humans don’t have a history of being petty over others not being the…

>>And yet none of them are landing autonomous reusable rocket modules I watched Armadillo do that in 2005 >Of all the 100% electric cars on road, he has two in the top 5 And neither invented the category nor managed to turn a profit on it >Who else has been pushing battery storage and solar systems that aren’t ugly af and simply made of old parts glued together in parallel? For batteries: Panasonic, LG but also liter…

When people are talking about SpaceX’s accomplishments, you can assume an implied “* from orbit”

I guarantee you John Carmack would not say he did anything close to what Musk did.

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