Tesla Stock Falls Big! "DeLorean Devolution Ride!" Job Cuts on "Very Difficult!" Road Ahead

(edited)

It was only a matter of time!

Is Tesla Business model devolving to DeLorean? 

Back to the Future?

“Higher volume and manufacturing design improvements are crucial for Tesla to achieve the economies of scale required to manufacture” the base $35,000 Model 3 “and still be a viable company,” he said. “There isn’t any other way.”

He cautioned: “The road ahead is very difficult.”

Mr. Musk added that unaudited results for the final three months of last year indicate Tesla made a lower profit than in the third quarter.

In premarket trading, Tesla shares were 7% lower following the announcement.

https://www.wsj.com/articles/tesla-to-cut-workforce-by-7-11547805922?tesla=y

https://www.wsj.com/articles/shocks-are-piling-up-at-tesla-11547823670

Someone could say, "I told you so!" But...

Maybe Musk will post some hash things on Twitter, or is that Smoke some hash while posting things on Twitter, maybe both? It's a little hazy. 

History repeats? 

An eccentric wild-hair scientist snorting a line while driving a futuristic "coke-infused" time machine!

Edited by Microbio-glutonist

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8 hours ago, Microbio-glutonist said:

Mr. Musk added that unaudited results for the final three months of last year indicate Tesla made a lower profit than in the third quarter.

I have no problems with the post, but can anyone shed further light on the figures given by Tesla in the September (the third) quarter (December quarter not released yet)? The letter to the shareholders says that 50,000 units were delivered (delivered not sold) in the quarter for $3 billion in revenue - at $US35,000 a pop that should be $US1.75 billion, and that's using the retail price now that I think of it.. 20 per cent gross margin on production, again using retail price, works out to cashflow of less than half what they claim, before capex.. am I misplacing a couple of zeros or is the American accounting system different?

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(edited)

On 1/18/2019 at 3:11 PM, markslawson said:

I have no problems with the post, but can anyone shed further light on the figures given by Tesla in the September (the third) quarter (December quarter not released yet)? The letter to the shareholders says that 50,000 units were delivered (delivered not sold) in the quarter for $3 billion in revenue - at $US35,000 a pop that should be $US1.75 billion, and that's using the retail price now that I think of it.. 20 per cent gross margin on production, again using retail price, works out to cashflow of less than half what they claim, before capex.. am I misplacing a couple of zeros or is the American accounting system different?

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The math does not, has not, and MAY never add up on EVs. 

EMOTION = EV MATH

EV MATH ≠ SCIENCE

You said, "...am I misplacing a couple of zeros or is the American accounting system different?"  

The zeros are there, they are all those in the American system unwilling to admit EV tech is not sustainable without government intervention. Musk has also depended on corporate welfare to continue operations of his enterprises. The PRC injected $60 billion into EV development, many of the developments are in NEV (less than 25 miles per hour) vehicles. China is committing another $80 billion in subsidies. 

The enormous PRC subsidies and liquidity created more than 400 EV SMEs in China. Additionally, these nascent startups rush to VC financing and push to IPO within 2-3 years, not the normal five years for IPOs. 

I've stated my position numerous times, I LOVE the appearance, acceleration, emissions, luxury, etc...from EVs, especially Tesla. However, when applying GAAP, IAS, IFRS, or any other audited and transparent accounting method, the MATH does not add up. 

If you want to trust anything, trust the measure of volatility in the under-"lying" bonds and equities of the corporation. 

No letter, tweet, or dope-smoke-infused communication from Musk will add up.

Tesla = DeLorean

EV = Emotional Volatility 

Edited by Microbio-glutonist

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