You know I got a huge chuckle last night from that Tesla’s Bitcoin earnings contributed roughly $100 million of their $400 million in net profit it reported to the quarter. However, the further you dig in to Tesla’s outcomes, the more intriguing the story receives.
To quickly summarize, here is the bear case:
> Minus Bitcoin and subsidies/tax credits, Tesla really lost nearly $200 million at the quarter;
> It is under scrutiny with this month’s fatal crash which might have involved some component of Autopilot…
> Elon was assuring total self-driving (which may unleash huge gains to automobile owners) was impending since at least 2019…
> The largest Tesla news in the primary Shanghai auto show last week has been that the protestor jump on a Tesla automobile wearing a”brake failure” t-shirt; and
> YouTubers are bailing today that Tesla has ceased giving away free things to people with large”referral credits,” and therefore are encouraging other EVs
But now, here is the bull situation :
> Tesla’s earnings would have been much greater with no $300 million of Musk’s executive order…
> The Model 3 is currently the world’s bestselling luxury sedan
> Tesla’s automotive gain margins climbed by a stage to 26.5percent
> Auto gross profits and gain for the quarter could have been even greater without $200 million of fees linked to changeovers for its Model S and Model X, and
> Last quarter is its own weakest, with the business also confronting”some of the toughest supply chain challenges which we have experienced,” since Musk said.
The point is, Tesla seems to be getting leaner and meaner as a carmaker only in time to get increased EV competition. I enjoy Whitney Tilson’s lineup: Tesla”is a poor brief…and a poor long!” However, let’s not forget, we are long it if we still have the S&P 500 within our retirement account.
See you p.m!
Kelly