Off topic but why is the document written with painful amount of tracking? (By tracking I mean in the typography sense, i.e. letter spacing, not that the document is tracking you.) It almost seems like they don't want people to actually read the document.
Q2 2020 Update
11–20 of 302 posts
Re: Q2 2020 Update
#12Given their net income is positive, what is the probability that they are added to s&p500?
High, because of the Criteria to join the S&P500[0]:
- a market cap of $8.2 billion - its headquarters in the U.S. - the value of its market capitalization trade annually at least a quarter-million of its shares trade in each of the previous six months - most of its shares in the public’s hands - at least a year since its initial public offering - the sum of the previous four quarters of earnings must be positive as well as the most recent quarter.
[0] https://www.spglobal.com/spdji/en/documents/methodologies/me...
Re: Q2 2020 Update
#13Revenues down Year over Year, and yet their stock price is 8x. Profiability increased, but its market cap is larger than Toyota which has over 10x the revenues. This stock is truly one for /r/wallstreetbets.
Re: Q2 2020 Update
#14What are regulatory credits? I thought the 7500 credit ran out?
[deleted]
Re: Q2 2020 Update
#15What are regulatory credits? I thought the 7500 credit ran out?
The manufacturers can trade between each other, e.g. if GM sells mostly vehicles that are heavy polluters, they can buy an offset from Tesla whose product does not burn gasoline.
Re: Q2 2020 Update
#16What are regulatory credits? I thought the 7500 credit ran out?
It's not the federal tax credit for purchasers, but rather the state ZEV credit which manufacturers trade.
"California, and nine other U.S. states that have adopted its ZEV regime, require automakers that sell internal combustion engine-based vehicles to earn a certain number of ZEV credits every year by selling zero-emission vehicles. The credit requirement is typically determined by the number of vehicles that the manufacturer sells in the state. If an automaker doesn’t produce enough electric cars to meet its quota, it can choose to buy credits from other manufacturers who do or pay a $5,000 fine for each credit it is short."
https://www.forbes.com/sites/greatspeculations/2017/09/01/te...
Re: Q2 2020 Update
#17What are regulatory credits? I thought the 7500 credit ran out?
There are still state credits, just no federal.
I also don't know if they selling carbon credits in this category or not.
Re: Q2 2020 Update
#18Given their net income is positive, what is the probability that they are added to s&p500?
High, because of the Criteria to join the S&P500[0]: - a market cap of $8.2 billion - its headquarters in the U.S. - the value of its market capitalization trade annually at least a quarter-million of its shares trade in each of the previous six months - most of its shares in the public’s hands - at least a year since its initial public offering - the sum of the previous four quarters of earnings must be positive as…
[deleted]
Re: Q2 2020 Update
#19The difference in the narrative versus the financial data is stark: Quarterly revenue has not shown any growth for nearly 2 years, despite introducing more models and expanding global deliveries. Their sales of regulatory credits this year is greater than all of the net income ever earned in their entire history.
When almost ever other car company is burning money, sustaining massive investment in multiple new massive factories, launching new products, and producing cars with pretty good margin and not losing money is an pretty big accomplishment.
Its not that long ago people were arguing even a small crisis would wipe out Tesla.
Re: Q2 2020 Update
#20The difference in the narrative versus the financial data is stark: Quarterly revenue has not shown any growth for nearly 2 years, despite introducing more models and expanding global deliveries. Their sales of regulatory credits this year is greater than all of the net income ever earned in their entire history.
They're investing aggressively in new factories and new product lines. If they wanted to show profits today they could give up building and expanding factories and stop entering new product categories. But that would be stupid.