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They are raising capital to tool up for the Model Y, Semi and Pickup assembly lines as planned. Q2 is going to be a positive quarter as the only reason Q1 fell

They are raising capital to tool up for the Model Y, Semi and Pickup assembly lines as planned. Q2 is going to be a positive quarter as the only reason Q1 fell short was missed deliveries from cars in transit to Europe and China.

_ph_ 8y ago
The big reduction in S/X played even a larger role, but these models got updated, the smaller and cheaper battery option available again. With the efficiency upgrades, the 80kWh Model S/X are greater value than ever.
jillesvangurp 8y ago
Yep, Tesla looks like a nice investment target at this point. They have now proven that they can ship stuff that people want in volume with the model 3 and they have several other products planned that have the potential to be at least as disruptive. They require capital investment to make that happen. That's why they are raising capital.
dragontamer 8y ago
> Q2 is going to be a positive quarter Tesla sold 10,000ish Model 3 cars in April. That's 2500 Model 3 cars/week. Remember, 5000ish cars/week is the breakeven point, when Tesla is profitable. https://insideevs.com/news/347137/tesla-model-3-s-x-sales-april/amp/ https://insideevs.com/news/347137/tesla-model-3-s-x-sales-ap... Inside EV is pumping the story. But anyone paying attention recognizes that Q3 2018 and Q4 2018 were the quarters to look at. Q3 2018 sold 4653 Model 3 cars / week (and also sold way more Model S / Model X cars). Tesla is severely behind on Q2 numbers, there's almost no way they're going to hit their guidance. 100%, Q2 will be a miss as well, I guarantee it. The numbers are already quite bad for Q2. Either that, or "Inside EVs" is wrong (quite possible... but buy the rumor, sell the news, amirite?) Q3 is where you can hope for Tesla to become profitable. They gotta expand into Europe and China and make up for all the lost sales. Americans are at the end of an automotive cycle, Americans are not going to be buying cars for a long time (in general).
- glenneroo 8y ago
  Just curious why you are in every Tesla thread providing critique? I understand the general skepticism/pessimism/negativity which goes along with HN comments but it seems as if you go out of your way to always be in Tesla-related threads arguing why they will fail or why their latest decision is pointless. The last month of your comment history proves my point.
  - dragontamer 8y ago
    1. I find stock analysis to be fun. There's a huge variety of information available because of the required 10k forms, quarterly filings, and so forth. I've been doing this since the start, you can ask the Tesla Bull "Toomuchtodo" about it, he and I often butt heads on this subject (but we both enjoy the discussion). 2. Tesla is such a divisive topic right now, that you can gather a lot of opinions and viewpoints on this stock. Other stocks, like Costco or Target, are less exciting. There's so little discussion that almost no one would want to talk to me about those stocks. 3. I can state strong opinions as a test to myself. They're documented, and sometimes I'm wrong. But making predictions and improving my own predictive skills in the market is absolutely essential if I want to make money in the long term. So I'll get my "paper practice" with Tesla, with regards to investing strategy. 4. The topics I DO care about deeply, don't get upvoted and don't get discussed. https://news.ycombinator.com/item?id=19702487 https://news.ycombinator.com/item?id=19702487 . It takes two to tango. I post interesting subjects when I can, but everyone around here is talking about Tesla. I'd rather talk about GPUs and CPUs, but there really isn't as much discussion around that subject these days. (Unless... Tesla makes an ASIC chip. Then I get to talk about GPUs, CPUs, AND Tesla at the same time!) If you're insinuating that maybe I have a greater reason... I own ZERO Tesla stock. The shares I do own are Costco, Lattice Semiconductor, Ford, SPY ETF, Pebblebrook, and a few others. Tesla is purely a theoretical exercise for me, since there's a lot of discussion online and analysis available. Other stocks don't even have a fraction of the analysis or discussion Tesla has, so its great "practice" as far as I'm concerned. I don't short shares either. So no shorts, nor do I have any put options right now. (My last put options / bear bets were on Kellogg and on Bank of America, if you want to know my stock-trading history). I don't make many bear bets or play it short very often... its very difficult to predict short squeezes and other issues like that, so I recommend people to stay away from shorting.
joobus 8y ago
Maybe you have some alternative definition of "positive quarter" but according to Tesla, Q2 will not be positive. > ... we expect to return to profitability in Q3 and significantly reduce our loss in Q2. https://www.sec.gov/Archives/edgar/data/1318605/000156459019012758/tsla-ex991_6.htm https://www.sec.gov/Archives/edgar/data/1318605/000156459019...
mhermher 8y ago
I think the offering states that the money is for de-risking their balance sheet. I don't think it mentions using the money for any of those things.

_ph_ 8y ago

The big reduction in S/X played even a larger role, but these models got updated, the smaller and cheaper battery option available again. With the efficiency upgrades, the 80kWh Model S/X are greater value than ever.

jillesvangurp 8y ago

Yep, Tesla looks like a nice investment target at this point. They have now proven that they can ship stuff that people want in volume with the model 3 and they have several other products planned that have the potential to be at least as disruptive. They require capital investment to make that happen. That's why they are raising capital.

dragontamer 8y ago

> Q2 is going to be a positive quarter Tesla sold 10,000ish Model 3 cars in April. That's 2500 Model 3 cars/week. Remember, 5000ish cars/week is the breakeven point, when Tesla is profitable. https://insideevs.com/news/347137/tesla-model-3-s-x-sales-april/amp/ https://insideevs.com/news/347137/tesla-model-3-s-x-sales-ap... Inside EV is pumping the story. But anyone paying attention recognizes that Q3 2018 and Q4 2018 were the quarters to look at. Q3 2018 sold 4653 Model 3 cars / week (and also sold way more Model S / Model X cars). Tesla is severely behind on Q2 numbers, there's almost no way they're going to hit their guidance. 100%, Q2 will be a miss as well, I guarantee it. The numbers are already quite bad for Q2. Either that, or "Inside EVs" is wrong (quite possible... but buy the rumor, sell the news, amirite?) Q3 is where you can hope for Tesla to become profitable. They gotta expand into Europe and China and make up for all the lost sales. Americans are at the end of an automotive cycle, Americans are not going to be buying cars for a long time (in general).

glenneroo 8y ago
Just curious why you are in every Tesla thread providing critique? I understand the general skepticism/pessimism/negativity which goes along with HN comments but it seems as if you go out of your way to always be in Tesla-related threads arguing why they will fail or why their latest decision is pointless. The last month of your comment history proves my point.
- dragontamer 8y ago
  1. I find stock analysis to be fun. There's a huge variety of information available because of the required 10k forms, quarterly filings, and so forth. I've been doing this since the start, you can ask the Tesla Bull "Toomuchtodo" about it, he and I often butt heads on this subject (but we both enjoy the discussion). 2. Tesla is such a divisive topic right now, that you can gather a lot of opinions and viewpoints on this stock. Other stocks, like Costco or Target, are less exciting. There's so little discussion that almost no one would want to talk to me about those stocks. 3. I can state strong opinions as a test to myself. They're documented, and sometimes I'm wrong. But making predictions and improving my own predictive skills in the market is absolutely essential if I want to make money in the long term. So I'll get my "paper practice" with Tesla, with regards to investing strategy. 4. The topics I DO care about deeply, don't get upvoted and don't get discussed. https://news.ycombinator.com/item?id=19702487 https://news.ycombinator.com/item?id=19702487 . It takes two to tango. I post interesting subjects when I can, but everyone around here is talking about Tesla. I'd rather talk about GPUs and CPUs, but there really isn't as much discussion around that subject these days. (Unless... Tesla makes an ASIC chip. Then I get to talk about GPUs, CPUs, AND Tesla at the same time!) If you're insinuating that maybe I have a greater reason... I own ZERO Tesla stock. The shares I do own are Costco, Lattice Semiconductor, Ford, SPY ETF, Pebblebrook, and a few others. Tesla is purely a theoretical exercise for me, since there's a lot of discussion online and analysis available. Other stocks don't even have a fraction of the analysis or discussion Tesla has, so its great "practice" as far as I'm concerned. I don't short shares either. So no shorts, nor do I have any put options right now. (My last put options / bear bets were on Kellogg and on Bank of America, if you want to know my stock-trading history). I don't make many bear bets or play it short very often... its very difficult to predict short squeezes and other issues like that, so I recommend people to stay away from shorting.

joobus 8y ago

Maybe you have some alternative definition of "positive quarter" but according to Tesla, Q2 will not be positive. > ... we expect to return to profitability in Q3 and significantly reduce our loss in Q2. https://www.sec.gov/Archives/edgar/data/1318605/000156459019012758/tsla-ex991_6.htm https://www.sec.gov/Archives/edgar/data/1318605/000156459019...

mhermher 8y ago

I think the offering states that the money is for de-risking their balance sheet. I don't think it mentions using the money for any of those things.