Model S has been selling for almost a year now in Europe (since Aug.2013). Check out this quote:
"But for pure electric cars, the market is led by Nissan LEAF with sales in the first half of 2014 reaching 7,109 or nearly 25% of all EVs.
Tesla Model S with 5,330 is in a solid second place (18% market share). However, the biggest surprise for many will be that roughly two thirds of those cars were sold in Norway!"
So strip out Norway and you have less than 1800 sales for the rest of Europe in the first half of 2014. WOW, 1800 sales in 6 months in all of Europe except Norway. Model S demand peaked in the US in less than a year. What happened to all the fish jumping in the boat? Must all be Chinese fish, or maybe the real demand is in Africa.
Justthefacts, 11 years of the same "Next-year-will-be-the-year" story is already old and worn out. The true measuring stick of business is profit. Tesla has none. No matter how much you and your friends wish to form the story, the fact remains.
Tesla had its best shot at profitability when the 4dr was first introduced. Musk gleefully announced Tesla could be profitable at 8,000 sales. How did that work for That time has quickly passed. The story now is the X, then the small car.
FYI, price sells, pal. So does volume. Tesla has neither. Try to remember that.
It's pretty comical, really.
There was news short time ago that mentions Gigafactory could be in 2 or more places just in case there's some "hold out" (or delay issues) in one of those places!!!
Sentiment: Strong Buy
But where does he put it?
Laugh? I nearly fouled my nappies!!!!
Well I have been saying that kbodie will at some point post that he's buying the far out of the money 300 strike puts...
Do you have ANY basis for this because nothing I've read even hints at actually building multiple Gigafactories anytime soon. You don't want to sound like the long's version of the usual troll suspects do you?
Which deal is most likely? Keep in mind that Panasonic is currently Tesla's sole battery supplier.
1. Panasonic will mothball their current factory and write Tesla a check for $200-300 million for new equipment for the gigafactory to get started.
2.Panasonic promises to move their equipment from their current factory to the gigafactory site if all goes well between now and 2017 and says that's our $200-300 million partnership.
Remember, Panasonic was supposed to be Tesla's biggest partner on the gigafactory. Any comments?
We'll probably disagree about the importance of profits vs cash flow while Tesla continues to rapidly grow, but maybe we can agree on this: Tesla has said it will be "slightly" cash flow negative for 2014 even after spending roughly $800 million in capex. In other words, there isn't much of a cash burn rate. Further, a capex increase next year would mean a very large increase in production capacity, less what will be spent on the Gigafactory. While Tesla will have spent a lot of money on MX design and tooling through the end of this year, no sales will really show up until 2015 so if Tesla is slightly cash flow negative this year but will have cash from MX sales starting next year, I think it's more likely that Tesla will be cash flow positive next year. If there are no surprises and excluding Gigafactory spending, I expect Tesla to be strongly cash flow positive in 2015.
Where would you disagree?
Agreed!!! Gigafactory can be Scaled Up!!! $200M from Panasonic for Nevada factory, then $400M from Tesla for Arizona, then $600 for New Mexico, then $800M for California, then $1B for Texas plant which should include a Model E factory for that price in my opinion (All States and $ amount can be interchanged)!! Load Up!!!
Sentiment: Strong Buy
2012 secondary @ ~$28
2013 secondary @ ~$92
2014 secondary @ ~$265
next secondary? Hmmmm, maybe $400-$600 range somewhere?
That may have a small amount of truth to it, however the fact that Tesla continues to fail to turn a profit just escalates it's cash burn rate. MOREOVER, the lack of demand for EV's continues to fade and China will NOT pick up the slack from the rest of the world.
1. No need for cash at this time.
2. No need for cash for the Gigafactory at this time. The $5 billion figure that's being throw around for it is when it's maxed out. For initial production in 2017, the figure is much lower. It's already been noted that the buildout will occur in stages.
3. The stock hasn't been hurt much by secondaries and even went up after one of them.