Connect with us

Hi, what are you looking for?

CleanTechnica

Cars

MarketWatch: Tesla’s Road Gets Easier From Here

In an article published by MarketWatch, the author believes that Tesla’s road will be easier from here. This verdict rides on the heels of Wednesday’s market close, in which Tesla reported $150 million in profits in the third quarter of 2019. Analysts were confident that Tesla would be reporting losses. In fact, many critics/short sellers who think Tesla is an imminent failure considered the quarter to perhaps be the beginning of the end, the last nail in the coffin. (It’s Halloween season, we need some seasonal metaphors).

In an article published by MarketWatch, the author believes that Tesla’s road will be easier from here. This verdict rides on the heels of Wednesday’s market close, in which Tesla reported $150 million in profits in the third quarter of 2019. Analysts were confident that Tesla would be reporting losses. In fact, many critics/short sellers who think Tesla is an imminent failure considered the quarter to perhaps be the beginning of the end, the last nail in the coffin. (It’s Halloween season, we need some seasonal metaphors).

Sure, there may be a few nails, but there is no coffin — not for Tesla. Every time someone says that Tesla will never (insert challenge here), Tesla does it. This just shows that Tesla — not just Elon Musk, but the entire management team there, accepts these challenges and take them head-on. Tesla wins almost every time. One of the major challenges that is mentioned in the article is its capital.

“Tesla Has No Capital”

That is in quotes because it is the mantra of many skeptics and critics who fully believe, in a cult-like fashion, that Tesla is the ultimate failure. They believe this so passionately that they put their money into their beliefs. Much like a religion. You go to church, tithe as much as you can so you can get those blessings. (This is how a lot of religious organizations make their billions.) In the third quarter, Tesla proved the skeptics and critics wrong.

“With estimates of next year’s free-cash-flow running as high as the $1.7 billion projected by Joe Osha of JMP Securities — before the earnings report — Tesla is basically home free on the cash front.” —MarketWatch.

Tesla has capital — end of story. Actually, no, not the end of the story — this is just another sentence in a chapter in Tesla’s story. Yes, Tesla didn’t have this kind of money for 15 years, and many think that this is a bad thing in this business, and it can be if money is your main focus and you are short-term minded. Yes, money is a goal of Tesla’s, but it’s not the goal. Further, Tesla’s whole mission and vision is long term. It’s about bringing 100% sustainable energy closer to today. Years from now, people will look back in awe at Tesla’s story. This is where many analysts get lost.

Many analysts focus on the end result right now. They look at the present numbers, calculate, and make their bets. This is how they lose. People love stories, and this is why many companies do well when they are a part of the story.

Let’s look at another story. I’m an LSU fan. A couple of weeks ago, we played Florida. It was a bit of a nail-biting game that had all of us on the edges of our seats. In fact, this game was the most-watched college football game on ESPN in the past two years. If LSU was Tesla and the viewers of the game were stock analysts, I can assure you every one of these analysts would have bet based off of the first two quarters of the game that LSU would have lost. Why? Because they would have looked at the right now scenario and predicted the future.

In the game, LSU had a very, very weak defense. It was so weak that even some fans were saying they couldn’t watch. LSU has been on a winning streak (8-0), and in that game LSU did what the analysts would not have expected them to do after the first half: LSU beat the Gators 42-28.

“The engineers of the future will be poets.” —Terence McKenna

Now replace LSU with Tesla. Tesla isn’t playing football, but the scenario is very similar. Here we have a team, per se, whose story (the game) will determine its ultimate fate. It’s the story, and until that story is over, we can’t say who wins or lose. This is why the analysts are stunned. They refuse to open the book and read the story. They don’t understand why Tesla is popular, well loved, profitable — and this is why they assume Tesla fans are a cult.

Tesla’s Road Is Its Story

Tesla’s road will be a bit easier than it has been according to the MarketWatch article. I agree. However, Tesla will still have its critics, simply because some of them are fueled by an intense hatred for Elon Musk. It’s sort of like those stories we grew up reading and watching as children: we have the good guys and the evil ones. I wouldn’t go as far as to say the people who hate Elon are evil, but I will say that the type of hatred they display shows just how much they need help. It’s not healthy to hate someone in this manner.

Tesla’s road is its story, and as that story continues to unfold, chapter by chapter, many will take each chapter in with delight. The Model 3, Model Y, Solar Glass, Powerwall, Model S, both Roadsters, the Pickup — all of these are chapters in Tesla’s story.

Featured image via Tesla Shuttle


Appreciate CleanTechnica’s originality? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.

 
 
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Written By

Johnna Crider is a Louisiana native who likes crawfish, gems, minerals, EVs, and advocates for sustainability. Johnna is also the host of GettingStoned.online, a jewelry artisan and a $TSLA shareholder.

Comments

#1 most loved electric vehicle, solar energy, and battery news & analysis site in the world.

 

Support our work today!

Advertisement

Power CleanTechnica: $3/Month

Tesla News Solar News EV News Data Reports

Advertisement

EV Sales Charts, Graphs, & Stats

Advertisement

Our Electric Car Driver Report

30 Electric Car Benefits

Tesla Model 3 Video

Renewable Energy 101 In Depth

solar power facts

Tesla News

EV Reviews

Home Efficiency

You May Also Like

Cars

Tesla just released its financial report for Q2 2021 and the numbers are larger than anticipated — proving that it has what it takes...

Batteries

As always, we are putting together a thorough livestream video for the second quarter (Q2) Tesla shareholder call later today. You can find it...

Cars

Tess went for a visit to a Classic Car and Hot Rod meetup this morning. I was a little wary about how she would...

Clean Transport

When I was in college, I spent some time in Taiwan doing volunteer work. It was a neat experience to get to know a...

Copyright © 2021 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.