Now please lay off the false accusation, and just engage with me on what I am actually trying to discuss. We can totally disagree about the future of Tesla and actually have fruitful discussion about certain aspects related to the company. But not if you keep trying to triangulate several of my posts together to decide I was saying something I never said.
GSY, you are being selective with your viewpoint again. The Q4 Tesla call stated that ALL EV's are historically weak on demand in January. So if you have a backlog elsewhere and are expanding elsewhere in the world, in order to utilise the staff ramp up you have in place, you will deliver where the demand is.
US demand will pick up again, as it does historically, later in the quarter and then they will rebalance their deliveries.
This doesn't sound to me like a business going under, it sounds smart. A business going under has factory shutdown days and a constant see saw in staff employment.
If you can give me a good reason why a company would switch supply to a market where demand has been high, but delivery low, when US demand is at it's historically lowest for the year, I'd love to hear it. But without that reason I'd say you are reaching.
You predicted several things last year. Two of which were that Tesla would make a technical and unsustainable profit in Q3 and that it would go bankrupt by being unable to fund both production and debts in Q4.
In fact what happened was that Tesla made a strong profit in Q3, sufficient to support Tesla in manufacturing and to also fund the debt in Q4. Tesla continues to make a profit at the current rate of sales and price of the models that it makes.
You also predicted that Tesla would run out of free cash because of the rate at which it was burning it. Notably free cash flow increased in Q4 even though profit did not. This is indicative of a sustainable profit curve where Tesla can fund future operations out of existing reserves, reducing the cost of that money.
Right now, from a business perspective, Tesla is doing and reporting, everything a successful business should. Even though vehicle manufacture, around the world, is in recession.
You have told me that I don't understand how a company runs, how it is financed, how the markets work and that I'm producing clueless predictions as to how Tesla is going to continue.
So far I've been right and you have been 100% wrong.
What should we think? I do believe that reigning in Musk, at this critical point, is going to stunt the possible future of Tesla, all to keep the SEC happy in compliance with the rules. Which will, in the end, do far more damage to investors than any tweet Musk could do. But that is a personal feeling and is not, currently, borne out by the facts of the company profit.
Tesla right now? Go LONG.