4 ms·

It is really hard to say they are underinvesting when they just opened a new factory and have a new vehicle, the Y, that just started production.

xkjkls 7y ago
It’s really hard to ever say a company is properly investing if their CapEx on their income statements exceeds their depreciation. Can you name other fast growing companies that is true for?
- woodandsteel 7y ago
  I don't understand enough about financials to understand what you are saying. But more to the point, what exactly do you think Tesla should have been spending its money on that it didn't? And let add to my original comment that Tesla also has the Semi going into production later this year, and recently brought out a greatly improved version of its solar roof, and is working like crazy on self-driving. But back to my question: what should it have been spending its money on that it didn't?
  - xkjkls 7y ago
    > I don't understand enough about financials to understand what you are saying. Capital Expenditures are what a company spends on land, buildings, equipment -- all of those sort of long term assets. Depreciation is how much the value of those assets decline over time with usage and would eventually require maintenance or repair costs. Usually, when depreciation exceeds CapEx, it means the company isn't spending enough to maintain their current assets, and this will eventually catch up to them. For growing companies investing in the future, CapEx is usually a great deal more than depreciation, since there will be a large amount spent on future assets. > But more to the point, what exactly do you think Tesla should have been spending its money on that it didn't? > And let add to my original comment that Tesla also has the Semi going into production later this year, and recently brought out a greatly improved version of its solar roof, and is working like crazy on self-driving. > But back to my question: what should it have been spending its money on that it didn't? My point is that the PR statements that Tesla releases don't match the financials. It's easy to announce that a factory is being built or a new car is going into production, but we should be extremely skeptical of these statements when they aren't backed up by audited financial information. Generally when investing in a company you should look at their financials first, as they are going to be the most honest, and PR statements/rumors last, as they will be the least honest.
    - woodandsteel 7y ago
      >My point is that the PR statements that Tesla releases don't match the financials. It's easy to announce that a factory is being built or a new car is going into production, but we should be extremely skeptical of these statements when they aren't backed up by audited financial information. Oh dear, are you saying that Tesla did not actually recently open a new factory in Shanghai, or start a new one outside Berlin? In spite of all the news stories and announcements by the governments in each of the countries. And ditto it has not been developing the Y in spite of all the reported sightings? Or that the new version of the solar roof did not go into production, in spite of all the reviews of it, and all the people who have said they have ordered one? It is all an extremely elaborate hoax? And even when their latest quarterly report discusses all this? You know, when someone is so far gone into conspiracy theories as you appear to be, there is no reasoning them.
      - xkjkls 7y ago
        How many of these things exist currently? As far as I know I’ve only seen a total of 10 deliveries from the Chinese factory, there has not been a single Model Y sold to the public yet, the German factory hasn’t even broken ground, and the Solar Roof, despite being in production for three and a half years still hasn’t had even a thousand customers install yet. Companies exaggerate in their PR statements. It’s very easy to claim a factory is complete but not have meaningful production. It’s very easy to claim that the Model Y is just around the corner. It’s apparently very easy to bilk investors that solar roofs are beyond a concept phase for three plus years. That doesn’t mean they are. It’s not a conspiracy theory to want a company to produce audited financials that show that they have done the complete investment in all of these projects and they aren’t vaporware.

xkjkls 7y ago

It’s really hard to ever say a company is properly investing if their CapEx on their income statements exceeds their depreciation. Can you name other fast growing companies that is true for?

woodandsteel 7y ago
I don't understand enough about financials to understand what you are saying. But more to the point, what exactly do you think Tesla should have been spending its money on that it didn't? And let add to my original comment that Tesla also has the Semi going into production later this year, and recently brought out a greatly improved version of its solar roof, and is working like crazy on self-driving. But back to my question: what should it have been spending its money on that it didn't?
- xkjkls 7y ago
  > I don't understand enough about financials to understand what you are saying. Capital Expenditures are what a company spends on land, buildings, equipment -- all of those sort of long term assets. Depreciation is how much the value of those assets decline over time with usage and would eventually require maintenance or repair costs. Usually, when depreciation exceeds CapEx, it means the company isn't spending enough to maintain their current assets, and this will eventually catch up to them. For growing companies investing in the future, CapEx is usually a great deal more than depreciation, since there will be a large amount spent on future assets. > But more to the point, what exactly do you think Tesla should have been spending its money on that it didn't? > And let add to my original comment that Tesla also has the Semi going into production later this year, and recently brought out a greatly improved version of its solar roof, and is working like crazy on self-driving. > But back to my question: what should it have been spending its money on that it didn't? My point is that the PR statements that Tesla releases don't match the financials. It's easy to announce that a factory is being built or a new car is going into production, but we should be extremely skeptical of these statements when they aren't backed up by audited financial information. Generally when investing in a company you should look at their financials first, as they are going to be the most honest, and PR statements/rumors last, as they will be the least honest.
  - woodandsteel 7y ago
    >My point is that the PR statements that Tesla releases don't match the financials. It's easy to announce that a factory is being built or a new car is going into production, but we should be extremely skeptical of these statements when they aren't backed up by audited financial information. Oh dear, are you saying that Tesla did not actually recently open a new factory in Shanghai, or start a new one outside Berlin? In spite of all the news stories and announcements by the governments in each of the countries. And ditto it has not been developing the Y in spite of all the reported sightings? Or that the new version of the solar roof did not go into production, in spite of all the reviews of it, and all the people who have said they have ordered one? It is all an extremely elaborate hoax? And even when their latest quarterly report discusses all this? You know, when someone is so far gone into conspiracy theories as you appear to be, there is no reasoning them.
    - xkjkls 7y ago
      How many of these things exist currently? As far as I know I’ve only seen a total of 10 deliveries from the Chinese factory, there has not been a single Model Y sold to the public yet, the German factory hasn’t even broken ground, and the Solar Roof, despite being in production for three and a half years still hasn’t had even a thousand customers install yet. Companies exaggerate in their PR statements. It’s very easy to claim a factory is complete but not have meaningful production. It’s very easy to claim that the Model Y is just around the corner. It’s apparently very easy to bilk investors that solar roofs are beyond a concept phase for three plus years. That doesn’t mean they are. It’s not a conspiracy theory to want a company to produce audited financials that show that they have done the complete investment in all of these projects and they aren’t vaporware.