Q2 2020 Update

- From Bloomberg re Robinhood and TSLA "number of Robinhood accounts holding Tesla shares (in some form) is at an all- time high of 496,890. Tesla is the second-most popular stock on the platform over the last 24 hours, and the 19th-most popular stock over the last 7 days."

Looking at:

- if profitiable check for amount of regulatory credits that Telsa gets from other automakers, this could be the difference between profitablity and not, though if this is what puts them over them edge then be a bit concerned

- Is Texax truck factory happening or not? If so, what kind of tax incentives did they get as these types of tax deals are the first thing that could get cut if reports of Texas', um Texas sized, budget gaps exits, Tulsa is the other option, maybe with the SC ruling Tulsa is native land there could be some weird tax deal there??

- Tesla's capex was cut way back from almost $3B forcats to under $1.3, helps make them look profitiable last year at the expense of that having to be made up this or next year, look for capex to be much higher

- Model Y and X and S are only made in Fremont, though Shanghai will start producing the Y soonish, still lots of geographical risk as the pandemic and factory shutdown illustrated, Musk must do better here

- Model Y was discounted and its brand new, Model S and X were discounted as well, TSLA really pushing to make their quarter for cars delivered, watch for gross margins to be down but numbers to be very juiced for a large beat

Numbers:

- Rev $6B vs $5.5B, down from previous highs, but with teh lock down, pretty darn good!!

- profit of 50cents per share on a GAAP basis, nice, though credits really juiced this

- 4 quarters of profitability, though not always pretty or organic is really nice to see

- Net Income was $451M vs ($74M), nice but mostly a factor of major discounting of cars and credit sales

- Cash and cash equivalents @ $8.5B, nice!!!

- Solar, yawn, 27 MW installed, why even bother at this point?

- handed over 90,000 vehicles, different from produced

Outcome:

- market cap is now $320B, wow!!

- stock is flat on day as one would expect with so much vol leading up to announcement. The Post earnings drift traders are probably staying away as you need nerves of steel to trade TSLA earnings:)

- Musk is now able to exercise an additional 1.69 million stock options, meaning he would reap a $2.1 billion gain if he exercised and could immediately sell the shares.

- S&P 500 here we come, so /r/wallstreetbets and robinhood, congrats you guys did it!!!

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.

Every car manufacturer must produce a certain percentage of electric cars. If their actual EV sales aren’t enough to cover that requirement, they can purchase “EV credits” from companies that exceeded their regulatory requirements to avoid a fine.

Essentially this policy gets car companies that aren’t producing EVs to subsidize the ones that are.