Vijay’s SimTesla Game — Create Your Own Truth About Tesla Finances
Are you game? Can you beat Elon Musk? Can you understand his moves?
Are you game? Can you beat Elon Musk? Can you understand his moves?
The ongoing onslaught of anti-Tesla articles in the press surely stems from many sources, and yes, some of these are doubtless legitimate journalists who are simply describing the situation as they see it. However, it’s widely believed that much of the mud, especially the (seemingly hourly) articles that focus on financial and stock-market topics, originates with short sellers who stand to gain serious money if TSLA stock falls.
“Tesla bankwuptcy” would perhaps be better termed “shorts losing their shirts”
How did Tesla get into this hopeless situation? The short answer: “It did not.”
The long answer is in 3 articles. The first one examined the problems 450,000 Tesla Model 3 reservations created. The second one gave a long look at the profitability of Tesla products. This third one finishes with the media madness about “Tesla Cash Burn.”
In the ongoing tug-of-war between Tesla bulls and bears, one of the most controversial subjects these days is the gross margin that Model 3 can generate at a 5,000 cars per week production rate as well as the rate when production lines have fully matured. Bears had previously focused on whether Tesla could successfully ramp up Model 3 production quickly enough so as to hit the 5,000 per week production number before Tesla’s cash position becomes compromised, but with the company now consistently turning out thousands of Model 3s per week and evidence of additional gains, the emphasis has shifted to the profitability of those cars produced, and this is where the concept of gross margin becomes key.
What am I thinking? Calling Tesla a very profitable company? But I think it is secretly a potentially very profitable company. Or not so secretly if you really pay attention to Tesla’s finances.
How did Tesla get into this hopeless situation?
The short answer: “It did not.”
The long answer is in 3 coming articles. This first one examines the problems 450,000 Tesla Model 3 reservations created.
Then we have a long look at the profitability of Tesla products.
We finish with the media madness about “Tesla Cash Burn.”
Maarten just wrote an epic piece on Elon Musk’s apparent decision to drop Wall Street and drop a beat on the world via a more enlightened, independent, inspired, societally beneficial, long-term corporate approach than we are used to seeing — even from Tesla.