Tesla Earnings Report: Top Takeaways
Below are a number of top takeaways from Tesla’s latest shareholder letter and conference call. Perhaps these thing stood out to you as well. Perhaps they will light a spark in your brain.
Tesla capital expenditures
Tesla Growing Quickly While Spending Little Capital
In reading Tesla’s 4Q Earnings Release, what struck me immediately is that even though they added a lot of production capacity in 2019, both expanding Fremont considerably and building the entire Shanghai Gigafactory in 2019, they spent a little more than half as much on capital as they did in 2018, when they were ramping Model 3 but not building any major factories.
Tesla Earnings In 2019 & 2020 — What Can We Learn? Plus, Happy New Year!
There have been many pieces on Tesla stock’s rocket run over the last month. According to stockcharts.com, Tesla went from a low price of 328.69 on December 2nd, 2019, to a closing price of 430.38 on December 27th, 2019 (it has dropped a bit since then). This is a phenomenal return of 30.9% gain in less than 30 days. I speculated earlier on many reasons why it happened. It turns out, though, the reason may be very simple. Wall Street analysts are expecting Tesla to earn higher profits in 2019 and 2020 compared to what they thought 3 months ago.
Capital Efficiency (Tesla’s Obsession)
seen it or any other automaker focus as obsessively or effectively on improving capital efficiency as Tesla does.
Tesla Plans To Spend Up To $3 Billion A Year On Gigafactories Over Next 24…
Tesla says it plans to spend up to $3 billion a year for the next 2 years on upgrades to its gigafactories in Nevada, New York, and Shanghai. How will it pay for all that? It won’t be easy, but the company says, don’t worry, it’s covered by company cash.
