Tesla is basically done. They signaled this a while back by offering a car for the masses at a much lower price and demand has been tepid at best. Electric cars are not economically viable or in high demand yet. Goodbye TSLA
Is This The End Of Tesla ?
- Thread starter Stockolio
- Start date
I Quote from WolfStreet :
Today, when no one was supposed to pay attention any longer, Tesla filed its quarterly report Form 10-Q with the SEC. Tesla had reported “earnings” on April 24, a doozie of a net loss of $702 million. But today, after the hoopla of its earnings report had died down, Tesla disclosed a slew of things that it hadn’t disclosed last week, including a record amount of sales of pollution credits.
Without those taxpayer-funded pollution credits that Tesla gets from the government and sells to other companies, its loss as automaker and solar-panel company would have been $918 million and its negative cash flow wouldn’t have been a cash drain of $919 million but a cash sinkhole of $1.14 billion
Tesla calls these taxpayer-funded pollution credits – part of the package of rich corporate welfare programs that Corporate America benefits from in numerous ways – “regulatory credits.”
The sales of these regulatory credits are booked as revenue, so they increase revenues by that amount. Since there are no costs associated with them, they also inflate by that amount gross profits, income from operations, net income, and cash flow. In other words, those taxpayer-funded credits are at the core of Tesla’s business model and flow straight from the top line all the way down to the bottom line.
Without those credits:
Without the revenues from selling those taxpayer-funded credits to other companies, Tesla’s operations as an automaker and a solar-panel maker would look a whole lot worse than they already do. And this comes on top of the enormous benefits Tesla still reaps from the now phasing-out taxpayer-funded credits that buyers of its vehicles obtain from the federal government and from some state governments.
Today, when no one was supposed to pay attention any longer, Tesla filed its quarterly report Form 10-Q with the SEC. Tesla had reported “earnings” on April 24, a doozie of a net loss of $702 million. But today, after the hoopla of its earnings report had died down, Tesla disclosed a slew of things that it hadn’t disclosed last week, including a record amount of sales of pollution credits.
Without those taxpayer-funded pollution credits that Tesla gets from the government and sells to other companies, its loss as automaker and solar-panel company would have been $918 million and its negative cash flow wouldn’t have been a cash drain of $919 million but a cash sinkhole of $1.14 billion
Tesla calls these taxpayer-funded pollution credits – part of the package of rich corporate welfare programs that Corporate America benefits from in numerous ways – “regulatory credits.”
The sales of these regulatory credits are booked as revenue, so they increase revenues by that amount. Since there are no costs associated with them, they also inflate by that amount gross profits, income from operations, net income, and cash flow. In other words, those taxpayer-funded credits are at the core of Tesla’s business model and flow straight from the top line all the way down to the bottom line.
Without those credits:
- Gross profit wouldn’t have been $566 million but merely $350 million.
- Net loss wouldn’t have been $702 million but $917.6 million, which would have been its largest loss ever by far.
- Operating cash flow wouldn’t have been the whopper of a negative $919.5 million that it disclosed on April 24, but a negative $1.137 billion!
Without the revenues from selling those taxpayer-funded credits to other companies, Tesla’s operations as an automaker and a solar-panel maker would look a whole lot worse than they already do. And this comes on top of the enormous benefits Tesla still reaps from the now phasing-out taxpayer-funded credits that buyers of its vehicles obtain from the federal government and from some state governments.
ZEV credit revenues can't be dismissed out of hand, they're deliverable to shareholders just as "real" revenues are - although there's huge potential for gaming quarter-to-quarter numbers, which must be factored in.
That said, TSLA does face the issue that demand for the credits will fall going forward, as other companies bring their own EV models to market.
That said, TSLA does face the issue that demand for the credits will fall going forward, as other companies bring their own EV models to market.
EVs have potential but at the moment they are more expensive and take so long to charge. You can recharge hundreds of miles of ICE range in minutes across and the huge international recharging network otherwise know as petrol stations. In another decade maybe EVs will be better but not just now. For the extra cost of EVs you can buy a lot of petrol.
Last edited:
of course. but for that one negative (which it really is not cause i'm charged to a full tank from my garage nightly) ; i can give you 5 positives to EV ownership. over and over...
I don't understand why people who don't own them have an opinion... Every single person I've talked to w/ a Tesla loves it.
It is simple:
- those who have one bought because they like Tesla.
- those who didn't buy one, didn't because they don't like Tesla.
Logic, not?
Own? None of the people even taken it out for a spin.
It's an interesting phenomenon that's somewhat specific to Teslas, I think. I've yet to hear anyone discuss how F150 is a bad or good without having ever driven one.
Madoff investors also liked Bernie and the returns. I don't understand how could people who weren't Madoff investors have an opinion?!!??
Hint: The quality or likeability of the cars is rather irrelevant to the basic business question: Can they be sold at a profit?
Hint #2: They can not. Batteries' energy density is just not good enough, not to mention you need a sane man at the company's top.