Some surprise Tesla news...

"Manwich - now Keto-Friendly" (manwich)
04/29/2020 at 17:23 • Filed to: None

It seems Tesla has reported a surprise Q1 2020 profit:

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And in addition to that, the Tesla Model 3 is the #2 best selling car in Europe last month:

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As recently as last year, execs at some European car makers were still laughing at Tesla because “they don’t make money” and “most people don’t want electric cars”

I’m guessing that nobody is laughing anymore.

I do wish I hung on to some of my TSLA stock.

DISCUSSION (21)

For Sweden > Manwich - now Keto-Friendly
04/29/2020 at 17:31

it worked!

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Future next gen S2000 owner > Manwich - now Keto-Friendly
04/29/2020 at 17:34

Good for Tesla. This won’t help temper the fan boys though.

farscythe - makin da cawfee! > Manwich - now Keto-Friendly
04/29/2020 at 17:40

im surprised anything sold in europe last month...

Jb boin > Manwich - now Keto-Friendly
04/29/2020 at 17:40

An important thing to mention is that Teslas in Europe are arriving by boat and some months sees no new shipments so the numbers can be varying violently from a month to the next.

https://carsalesbase.com/europe-tesla/

For example in december 2019 there was 24249 car sold then in january 2020 it was down to 2069 so almost 12 times less .

fintail > Manwich - now Keto-Friendly
04/29/2020 at 17:45

Creative accounting?

camarov6rs > Manwich - now Keto-Friendly
04/29/2020 at 17:49

Ask Elon if they remain profitable without their emission credit sales

DipodomysDeserti > Manwich - now Keto-Friendly
04/29/2020 at 17:53

The fact that you turn a profit in a quarter where you sold less cars, cut salaries and fired or furlowed a whole bunch of people is pretty telling. [insert what is it you do here office space gif]. And from the European sales article:

*The main reason for such a result is that Tesla volume deliveries happen usually in the third month of a quarter.

I guess just reading the headlines is how most people digest information.

RallyDarkstrike - Fan of 2-cyl FIATs, Eastern Bloc & Kei cars > For Sweden
04/29/2020 at 17:55

Yeah, I get the sense that sometimes when Musk does things it’s simply to get attention that increased stock value, not because he necessarily really means them.....he’s pretty shrewd.

Manwich - now Keto-Friendly > DipodomysDeserti
04/29/2020 at 17:58

Another factor in Euro sales for Tesla is they have to put their cars on a boat to ship them from the US to the EU.

Though that will change somewhat once the Berlin plant ramps up.

Manwich - now Keto-Friendly > Future next gen S2000 owner
04/29/2020 at 17:59

Actually, it is almost guaranteed to make the fan boys worse... much MUCH worse.

I should know as I’m a Tesla fan (even though I sold my stock).

LOL

Wobbles the Mind > Manwich - now Keto-Friendly
04/29/2020 at 18:00

I think they qualify to be included in the S&P 500 Index now. Huge win for the company if true . I do think Tesla is a lot more likely to survive economic downturn than any other US automaker.

Manwich - now Keto-Friendly > camarov6rs
04/29/2020 at 18:02

If you look at the financials, the emissions credits have been a very small part of the overall financial picture for years now. Not saying it doesn’t help... it absolutely does. But it’s a small percentage of the overall business now.

But it is kind of funny how the money Tesla gets from FCA is basically paying for their new plant in Berlin.

Dr. Zoidberg - RIP Oppo > fintail
04/29/2020 at 18:05

Is there any other kind?

camarov6rs > Manwich - now Keto-Friendly
04/29/2020 at 18:19

Oh good to know. I haven’t been paying enough attention then. Last I saw the credits were keeping them from running negative for quite a while.

SilentButNotReallyDeadly...killed by G/O Media > Manwich - now Keto-Friendly
04/29/2020 at 18:31

One wonders whether this is more to do with battery sales than car sales...or other creative business accounting.

Tesla sells bugger all cars into Oz but they do have quite a business for batteries in grid backup power supplies for houses and business plus load levelling in the grid system itself.

fintail > Dr. Zoidberg - RIP Oppo
04/29/2020 at 18:35

Record profits for all!

Unless something else works better.

My bird IS the word > Manwich - now Keto-Friendly
04/29/2020 at 18:40

I would need to see a detailed breakdown on their finances. If you ask me, it doesnt make sense that they are able to make money. Still feeling theres an Enron-esque situation brewing.

Manwich - now Keto-Friendly > My bird IS the word
04/29/2020 at 19:04

Well you can start here:

https://ir.tesla.com/sec-filings

Let me know if you find anything.

For Tesla to be like Enron, they would have to have financial statements that are far more complicated, have *un explainable * rising debt and use “special purpose entities”. In addition to that, I don’t see Musk, his friends or family divesting their investments in Tesla.

I have to say if it was one company that is most Enron-like, it’s Faraday Future.

ZHP Sparky, the 5th > My bird IS the word
04/29/2020 at 19:22

There isn’t an Enron brewing in there, it’s just pure fandom and irrational belief on the part of fanboi investors. It’s pure speculation based on wild future expectations. Which sure, they could pan out - but it’s nothing short of gambling.

Manwich - now Keto-Friendly > SilentButNotReallyDeadly...killed by G/O Media
04/29/2020 at 19:57

The make most of their revenue from automotive. Having said that, US$1.5 billion in revenue (out of a total of $24 billion) was from their energy generation and storage business last year :

https://ir.tesla.com/node/20456/html#Consolidated_Statements_of_Operations

So it’s a big enough item to have it as a separate entry rather than have it lumped in with “other misc revenue”

someassemblyrequired > My bird IS the word
04/29/2020 at 21:16

I suspect there’s some channel stuffing happening to try and get added to the S&P 500 and also to secure Elon’s huge stock option payout. While it’s not Enron, i t’s a shitco, just with more cheerleaders than Faraday.

Plus with sub-$1 gas and everyone being broke/unemployed, no one will be buying expensive electric cars.