rubl
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Tesla
Jul 21, 2022 9:49:41 GMT 7
Post by rubl on Jul 21, 2022 9:49:41 GMT 7
I don't know if it has or it hasn't, I'm simply taking the statement at face value. Make a profit, make a loss, it doesn't really matter, the point is the company sold assets because it needed to improve its cash holdings. With valuta and certain assets you'd normally try to hatch against fluctuations if the 'situation' is deemed volatile. Any idea if that's possible with bitcoin?
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chiangmai
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Tesla
Jul 21, 2022 9:56:14 GMT 7
Post by chiangmai on Jul 21, 2022 9:56:14 GMT 7
You could take out a contract for difference (CFD), that would probably work.
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chiangmai
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Tesla
Jul 22, 2022 8:22:22 GMT 7
Post by chiangmai on Jul 22, 2022 8:22:22 GMT 7
A reasonable article from Barrons puts things into perspective: Tesla beat earnings expectations yet again. "But second-quarter earnings and sales were down compared with the first quarter. In the first quarter, Tesla reported earnings per share of $3.22 from sales of about $18.8 billion. The sequential decline in earnings was expected because of China’s lockdowns to fight Covid-19, which constrained production and left Tesla with fewer electric vehicles to sell. Tesla delivered about 255,000 EVs in the second quarter, down from about 310,000 in the first quarter". "Along with $1.83 in per-share earnings, analysts projected about $570 million in free cash flow for the second quarter, down from about $2.2 billion generated in the first quarter. Tesla reported $621 million in second quarter free cash flow. That looks like a solid result. New Street Research analyst Pierre Ferragu was worried Tesla would generate no free cash flow in the second quarter". Lower sales because of the lockdown in China means less cash to pay suppliers, that's why cash flow is important and that's why they sold assets. The alternative is to pay suppliers late or not produce as many vehicles, both damaging options. "There was also an expected write down of Bitcoin BTCUSD +0.57% holdings, but it was much smaller than expected at $106 million. Tesla avoided a bigger charge because it sold about 75% of its Bitcoin holdings during the quarter". "What’s more, Tesla’s gross profit continues to be better than its automotive peers. General Motors GM +1.06% (GM) and Volkswagen (VOW3. Germany) are expected to generate gross profit margins of roughly 16% and 18% in the second quarter, respectively. Automotive gross profit margins, excluding regulatory credits Tesla earns by selling zero-emission vehicles, came in at about 26%, down from 30% in the first quarter of 2022. Still, margins were a little better than the Street projected. www.barrons.com/articles/tesla-earnings-stock-price-51658319922
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chiangmai
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Tesla
Jul 22, 2022 10:43:45 GMT 7
Post by chiangmai on Jul 22, 2022 10:43:45 GMT 7
Selling assets to free up cash made me look at what the other automotive companies are doing, it's quite an eye opener. Firstly, it seems that the automotive industry is a cash intensive business....."car making is such a cash-intensive business that Ford needs to make sure its cash balance stays above $20 billion to cope with a recession whenever it may come, bond analysts say. Predictions about a recession are a notoriously poor science, but it is ultimately a matter of when, not if". www.cnbc.com/2019/11/25/at-ford-37-billion-in-the-bank-and-strapped-for-cash.htmlIn fact, Ford has some USD $37 bill. in liquid assets that it just doesn't want to spend. Mostly, the problem is the forecast recession which is likely to reduce demand, this is further complicated by covid fueled supply reductions. Falling production and sales, late supplier payments, lay offs and temporary closures are all bi-products of the company that doesn't have enough cash to see it through a downturn. So Tesla's paltry cash on hand doesn't bode well, this is one sure fire way for the major car companies to win the EV race and that's by sitting back and doing nothing as a prolonged recession and covid pandemic, eat into market share and eventually the business. It's a risky business.
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AyG
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Tesla
Aug 10, 2022 12:24:40 GMT 7
Post by AyG on Aug 10, 2022 12:24:40 GMT 7
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chiangmai
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Tesla
Aug 10, 2022 14:52:33 GMT 7
Post by chiangmai on Aug 10, 2022 14:52:33 GMT 7
It's still far above fair value, and, the 3 for 1 split is due on 25th.
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AyG
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Tesla
Aug 10, 2022 15:15:45 GMT 7
Post by AyG on Aug 10, 2022 15:15:45 GMT 7
^^^ That's kind of the point. Musk knows it's seriously overvalued, so he sells now rather than later, anticipating a decline in share price.
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rubl
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Tesla
Aug 10, 2022 15:17:10 GMT 7
Post by rubl on Aug 10, 2022 15:17:10 GMT 7
Rather than having 'less' confidence in Tesla it might be other self-induced problems, like Twitter. Interesting that he used twitter to tweet such. "“In the (hopefully unlikely) event that Twitter forces this deal to close *and* some equity partners don’t come through, it is important to avoid an emergency sale of Tesla stock,” Musk tweeted late Tuesday... Please credit and share this article with others using this link:https://www.bangkokpost.com/business/2365366/elon-musk-sells-6-9bn-of-tesla-to-avoid-twitter-fire-sale. View our policies at goo.gl/9HgTd and goo.gl/ou6Ip. © Bangkok Post PCL. All rights reserved."
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chiangmai
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Tesla
Aug 11, 2022 6:54:50 GMT 7
Post by chiangmai on Aug 11, 2022 6:54:50 GMT 7
^^^ That's kind of the point. Musk knows it's seriously overvalued, so he sells now rather than later, anticipating a decline in share price. I think that seriously overvalued would mean anything over $1,000, which is what it was in April. Selling at $8xx seems quite reasonable to me, especially since the upward trend continues today. I suspect the rationale for selling has more to do with the Twitter deal than anything else, dunno, unsure.
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rubl
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Post by rubl on Aug 11, 2022 7:37:34 GMT 7
"2022-08-04 Tesla (TSLA) Shareholders Approve 3-For-1 Stock Split Approval comes as Tesla's market value rebounds toward $1 trillion Shareholders of Tesla, Inc. (TSLA) approved a 3-for-1 split of the company's common stock at its annual meeting held after the close of the markets on Aug. 4, 2022, according to a preliminary tally announced at the meeting. A final count will be issued on SEC Form 8-K within four business days. The vote increases Tesla's authorized common shares from 2 billion to 6 billion. Tesla reports that had it had just over 1 billion common shares outstanding as of June 6, 2022." www.investopedia.com/tesla-tsla-shareholders-approve-3-for-1-stock-split-6363331
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AyG
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Tesla
Aug 17, 2022 12:33:57 GMT 7
Post by AyG on Aug 17, 2022 12:33:57 GMT 7
The irresponsible ʇıɥs is at it again, first saying he's going to buy Manchester United (an association football team, m'Lud), and now saying "it was a joke" - just like buying Twitter was a joke.
The sooner this man is silenced, the better it will be for the world, and for investors.
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rubl
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The wondering type
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Tesla
Aug 17, 2022 13:35:00 GMT 7
Post by rubl on Aug 17, 2022 13:35:00 GMT 7
The irresponsible ʇıɥs is at it again, first saying he's going to buy Manchester United (an association football team, m'Lud), and now saying "it was a joke" - just like buying Twitter was a joke. The sooner this man is silenced, the better it will be for the world, and for investors. I'm still wondering if it is positive or negative Elon can't make the 2024 White House run.
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AyG
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Tesla
Aug 24, 2022 7:59:18 GMT 7
Post by AyG on Aug 24, 2022 7:59:18 GMT 7
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chiangmai
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Tesla
Aug 24, 2022 9:28:47 GMT 7
Post by chiangmai on Aug 24, 2022 9:28:47 GMT 7
That's why it's called a test track, duh!
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rubl
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Post by rubl on Aug 24, 2022 9:35:05 GMT 7
The overwhelming focus is solving full self-driving," Musk says in one clip. "That's essential. That's really the difference between Tesla being worth a lot of money and being worth basically zero."
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