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As an investor, I like the format these results are presented in. The slide deck approach is a lot more approachable than the typical text-only SEC filing. An a

by zaroth 7y ago

As an investor, I like the format these results are presented in. The slide deck approach is a lot more approachable than the typical text-only SEC filing. An average investor is much more likely to open this and read it than the typical financial statement. It's not over-the-top marketing agency gloss, but it has some nice touches. Of course, you also get the text-only filing to follow. As far as the key numbers, Tesla continues to push profitability and I think beat estimates by pulling off a profitable quarter in Q1. I can't imagine they will do it again in Q2, and they've suspended their guidance, but compare and contrast to, e.g. Ford, which is currently drawing all their credit lines to the max to stay afloat (to the tune of $15 billion). They've never had spare inventory before, it will be interesting to see how fast they can clear it when things pick up. In a very long shutdown scenario, Tesla will come out way ahead of standard auto makers because their cars somewhat forego the "New Model Year" craze, and they can software update all their inventory. So while most carmakers will be looking at bursting full lots of "late model year" new cars, Tesla will be selling "Model 3" and "Model Y" through their configurator same as usual. It's been fun watching the Munro tear-downs of the Model Y. I'm curious when and how quickly those improvements will make it back into a redesigned Model 3. They have definitely improved and simplified the design in important ways. They highlighted this in their slides at the end showing underbody components of Model 3 (70 pieces) vs Model Y (2 pieces, eventually 1). Solar is unfortunately MIA in this report. Buffalo managed to get Solar Roof ramped up to 4MW per week (1,000 homes per week) just as the shutdown hit. I would imagine a lot of momentum has been lost in their installer recruitment and training efforts. I would have been very nice to see some ROI in 2020 from Solar Roof, but I'm not sure we'll get it this year. Looking forward to getting to see a Model Y in person and feel how much more space it has. It seems like they've left a good deal of acceleration "in the tank" to unlock in future software updates, that will also be fun to see.

zoroaster 7y ago
As an investor, these financials are so sexy. Historical quarterly data presented, cash flow statement presented quarterly, so many small examples of excellence and thoughtfulness in how the figures are presented.
jillesvangurp 7y ago
Not an investor, but Tesla is looking increasingly like a money printing machine to me with so much untapped potential that they could pivot to in many ways. The genius of the whole setup is that it's a car company that is basically a battery company but also a power infrastructure company. IMHO, any battery produced in the next decades will have some way of being sold profitably. It just so happens that cars are a very profitable way to monetize them right now. But there are lots of other places where batteries could be equally useful (which Tesla has been exploring). When EVs commoditize over the next decade, they are ready to start pivoting to other things that will have a similarly insatiable demand for battery. Tesla using the same batteries in cars, semis, and grid storage means that any penny invested in more production capacity for batteries is not lost. The reason semis are delayed is that they lack production capacity because it's maxed out. They're adding capacity as fast as they can at a jaw dropping pace and it's maxed out. That's not bad news but good news for Tesla. Solar is a risky but genius move as well. I know they've gotten a lot of criticism for that and the so far underwhelming adoption rate. But it's a smart move if they can get that working. Pairing solar with batteries and car charging options (and maybe car to grid/house) is going to be a killer deal. And that's just the consumer market. There are a lot of solar panel manufacturers out there but not a lot that are also selling grid storage solutions, mass producing cars, or have experience with building out direct sales to consumer type organizations. Add to that their approach to innovating mass production of batteries, cars, and indeed factories & machines. Tesla does all these things for the very simple reason that the sum of these things is more than the value of them individually. IMHO they'll bang on this until it starts working just right in a couple of years while dropping production cost at a pace that basically very few will be able to match and own the solar market as well.
- sunstone 7y ago
  I expect the prospects for the cybertruck are good enough to require an entire new battery factory of its own.

by zaroth 7y ago

zoroaster 7y ago

As an investor, these financials are so sexy. Historical quarterly data presented, cash flow statement presented quarterly, so many small examples of excellence and thoughtfulness in how the figures are presented.

jillesvangurp 7y ago

Not an investor, but Tesla is looking increasingly like a money printing machine to me with so much untapped potential that they could pivot to in many ways. The genius of the whole setup is that it's a car company that is basically a battery company but also a power infrastructure company. IMHO, any battery produced in the next decades will have some way of being sold profitably. It just so happens that cars are a very profitable way to monetize them right now. But there are lots of other places where batteries could be equally useful (which Tesla has been exploring). When EVs commoditize over the next decade, they are ready to start pivoting to other things that will have a similarly insatiable demand for battery. Tesla using the same batteries in cars, semis, and grid storage means that any penny invested in more production capacity for batteries is not lost. The reason semis are delayed is that they lack production capacity because it's maxed out. They're adding capacity as fast as they can at a jaw dropping pace and it's maxed out. That's not bad news but good news for Tesla. Solar is a risky but genius move as well. I know they've gotten a lot of criticism for that and the so far underwhelming adoption rate. But it's a smart move if they can get that working. Pairing solar with batteries and car charging options (and maybe car to grid/house) is going to be a killer deal. And that's just the consumer market. There are a lot of solar panel manufacturers out there but not a lot that are also selling grid storage solutions, mass producing cars, or have experience with building out direct sales to consumer type organizations. Add to that their approach to innovating mass production of batteries, cars, and indeed factories & machines. Tesla does all these things for the very simple reason that the sum of these things is more than the value of them individually. IMHO they'll bang on this until it starts working just right in a couple of years while dropping production cost at a pace that basically very few will be able to match and own the solar market as well.

sunstone 7y ago
I expect the prospects for the cybertruck are good enough to require an entire new battery factory of its own.