Posted on 08/01/2018 7:38:06 PM PDT by Moonman62
With a pledge of future profitability and an apology for past bad manners, Tesla CEO Elon Musk was upbeat in his conversation with analysts during a second-quarter conference call Wednesday.
Tesla shares soared as much as 11 percent in after-hours trading. The stock has been under pressure for some time as investors have worried about the cash the company was burning and whether it would be able to sustain its profitability.
The electric car maker's second-quarter loss was wider than analysts expected, but the company backed its prior forecast that calls for profitable third and fourth quarters.
"From an operating plant standpoint, from onwards I really want to emphasize our goal is to be profitable and cash flow positive for every quarter going forward," Musk said on the call. He added that recessions, or force majeure events could derail the plan but the goal is to be achieving positive GAAP income and cash flow "every quarter from here on out."
Increased rates of production, improving margins, and cost cutting is helping Tesla hit its goal.
One big step it made was completing its major cost restructuring plan in the second quarter, the company said. Tesla had $2.2 billion in cash on hand at the end of the quarter, and expects its cash reserves to grow in the second half of the year. It also now expects to spend less that $2.5 billion in capital expenditures in 2018, far below the $3.4 billion it spent in 2017.
(Excerpt) Read more at cnbc.com ...
All those retroactive rebates from the suppliers really turned the corner for them.
Without leftist subsidies Tesla would be bankrupt. When Trump pulls subsidies and makes customers pay the true cost, Tesla will be bankrupt. If you want to make money, do a long-term short on Tesla stock.
All those retroactive rebates from the suppliers really turned the corner for them.
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I’m pretty sure none of those were applied to the quarter they reported. Do you have evidence, otherwise?
When Trump pulls subsidies and makes customers pay the true cost, Tesla will be bankrupt.
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About 90% of the “subsidies” counted against Tesla are state and local. How is Trump going to pull those?
” When Trump pulls subsidies and makes customers pay the true cost, Tesla will be bankrupt.”
You REALLY should do your homework.
OK, all subsidies pulled from Tesla. People forced to pay that did not buy a Tesla.
Watched Fox Business after the results were released. The consensus is that the writing is on the wall. At best Elon will sell it off. I’m not sure whom would buy it other than maybe for intellectual property.
” If you want to make money, do a long-term short on Tesla stock.”
Ask Einhorn how that is working out.
Do you know what a margin call is?
I should. I know subsidies are being paid. I thought it was mainly federal, but don't know all state and local laws. It is heavily subsidized and maybe, for my GROSS stupidity I should jump off my couch!
OK, all subsidies pulled from Tesla.
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Are all state and local subsidies going to be removed from Ford and GM, too? They receive more than Tesla. Boeing receives more than anybody.
https://subsidytracker.goodjobsfirst.org/top-100-parents
You can click on each company to get the proportion of federal vs. local subsidies. This is the main source that the LATimes used when they did their hit piece on Musk and subsidies.
I have a high net worth and know what a margin call is for short sales. I usually make the right call for option trades and I am all SHORT on Tesla.
Maybe still time to short.
Rebates are scaled back when a company exceeds 200k units which Tesla will reach this year.
One owrd, “Tucker”.
And then there is all the interest that has to be paid on borrowed shares while they wait for the world to end, if they don’t get a margin call before then.
Pretty surprising at this point that Musk’s hot air can still move the market so dramatically. Of course, he’s predicting great profits soon. What else is new? For someone whose predictions have rarely been matched by reality, what almost shocking is that there are apparently still people drinking his koolaid.
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