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Tesla Financial Results 2019 Q4

ir.tesla.com

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Re: Tesla Financial Results 2019 Q4

#22

Year-over-year revenue flat, year-over-year GAAP income down 25% on 20k more units delivered. Hard to understand...

It’s a deteriorating margin mix; discounts to move metal.

I guess the hard to understand part is: how does a $50B company that is growing revenue at 1% annually more than double its market cap in 3 months. It's insane (ludicrous?)!

Re: Tesla Financial Results 2019 Q4

#23
post #13

Earlier quoted context omitted.

The Y will mostly cannibalize 3 sales, but will be good for a few quarters’ pop.

I thought the Y was most similar to the X? Am I missing something?

> I thought the Y was most similar to the X?

IMO, all Tesla vehicles (so far) are pretty similar to each other.

On the one hand, Y is a less expensive X.

On the other hand, Y is a bigger 3 with a hatch back.

I'm not an expert in automotive consumer behavior, but I have to imagine that Y will cannibalize some amount of 3 sales. I also don't think that will matter that much - there is so much demand for Tesla vehicles that they are battery limited.

Re: Tesla Financial Results 2019 Q4

#28

Earlier quoted context omitted.

It’s a deteriorating margin mix; discounts to move metal.

I guess the hard to understand part is: how does a $50B company that is growing revenue at 1% annually more than double its market cap in 3 months. It's insane (ludicrous?)!

They’re growing while the market for legacy automakers is shrinking. Everyone else is tapped out, while there’s still a whole lot of people left on Earth who’ll buy Tesla products (and you’ll notice Tesla keeps changing where the production firehose is pointed based on local incentives maximizing sales).

Heck, Fiat has to hand over almost $2B to Tesla just to be permitted to sell cars in Europe because they have little to no low or zero emissions vehicles to sell.

As an investor desperate for returns, do you invest in the past or the future?

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