Liberty Posted February 19, 2014 Share Posted February 19, 2014 http://files.shareholder.com/downloads/ABEA-4CW8X0/2612790357x7382497x727013/9885dd26-2e82-4052-b171-3685fd8150b3/Q4'13%20Shareholder%20Letter.pdf Up 12% after hours so far. Anyone still short? Link to comment Share on other sites More sharing options...
thepupil Posted February 19, 2014 Share Posted February 19, 2014 yessir! As the one of the board's short seller apologists, and as a naive "no i'm not listening to not short on valuation because i have my head in the sand" 25 year old, I am short a few shares of Tesla. I can withstand the volatility...too a point. Link to comment Share on other sites More sharing options...
ERICOPOLY Posted February 21, 2014 Share Posted February 21, 2014 The Tesla service center manager in Van Nuys left me a voicemail yesterday. They (at their cost) are offering to send a "service ranger" out to my house to fix my glovebox. Another option is they will put my car on a flatbed truck and take it to their service center to fix it. Meanwhile, they would of course leave me with an equivalent fully loaded Model S "loaner" to drive while they work on my car. This is all because I bitched on the Tesla.com enthusiast forum that my glove box won't pop open when I push the button to release the catch -- you have to first push the button and then manually pull the glovebox door open. This problem was even present at the time of delivery. The only reason why I haven't asked to get it fixed is that there is a service center opening near me soon. So I figured, hey, no rush. But really, can you believe they are offering to flatbed my car to their nearest service center, provide me with a loaner, and all because of my glovebox not popping open automatically? I'm a bit amazed. Link to comment Share on other sites More sharing options...
TwoCitiesCapital Posted February 21, 2014 Share Posted February 21, 2014 yessir! As the one of the board's short seller apologists, and as a naive "no i'm not listening to not short on valuation because i have my head in the sand" 25 year old, I am short a few shares of Tesla. I can withstand the volatility...too a point. I was short at $160. Was fortunate enough to close out for a small gain when the last route occurred after watching it rise 25% in no time at all. Considering doing something puts on this one but am waiting to see how things shake I'm. Ive definitely learned my lesson of shorting without a foreseeable catalyst with Amazon. The Tesla service center manager in Van Nuys left me a voicemail yesterday. They (at their cost) are offering to send a "service ranger" out to my house to fix my glovebox. Another option is they will put my car on a flatbed truck and take it to their service center to fix it. Meanwhile, they would of course leave me with an equivalent fully loaded Model S "loaner" to drive while they work on my car. This is all because I bitched on the Tesla.com enthusiast forum that my glove box won't pop open when I push the button to release the catch -- you have to first push the button and then manually pull the glovebox door open. This problem was even present at the time of delivery. The only reason why I haven't asked to get it fixed is that there is a service center opening near me soon. So I figured, hey, no rush. But really, can you believe they are offering to flatbed my car to their nearest service center, provide me with a loaner, and all because of my glovebox not popping open automatically? I'm a bit amazed. From a consumer standpoint this in incredible. From a business standpoint it's burning cash to build loyalty. The question is what's more valuable: the loyalty or the cash. Once Tesla be becomes a mass market producer, as it aims to be, this will not continue. It can't. It would eat too much cash to have thousands of loaner vehicles available daily for people with glove box problems. Will customers who grew used to this kind of treatment react poorly when it stops? Will this actually damage their reputation by setting expectations too high to be sustainable? I think they're a phenomenal company but it's also a mouth watering short given the economics. Link to comment Share on other sites More sharing options...
ItsAValueTrap Posted February 21, 2014 Share Posted February 21, 2014 Anyone still short? Thank god I covered. This is crazy though... the market cap is twice that of Fiat's. Less than half that of GM's and Ford's but catching up. Link to comment Share on other sites More sharing options...
Liberty Posted February 21, 2014 Share Posted February 21, 2014 From a consumer standpoint this in incredible. From a business standpoint it's burning cash to build loyalty. The question is what's more valuable: the loyalty or the cash. Once Tesla be becomes a mass market producer, as it aims to be, this will not continue. It can't. It would eat too much cash to have thousands of loaner vehicles available daily for people with glove box problems. Will customers who grew used to this kind of treatment react poorly when it stops? Will this actually damage their reputation by setting expectations too high to be sustainable? I think they're a phenomenal company but it's also a mouth watering short given the economics. I think they're smart enough to figure it out. One easy way is to differentiate like Toyota did with Lexus. Lexus customers don't expect the same service as Toyota customers. Either they could create a new brand, or make it otherwise clear that the extra premium service is only available to the premium models. I think that even without going to crazy lengths, they should easily be able to provide much better service than other automakers at the mass-market level because they will control their service network entirely and won't have third party dealers (who often only care about making money on service, something that Tesla said it won't do). It's similar to how you'll get better service at the Apple store for Apple products than at a Best Buy for a random electronics brand. Link to comment Share on other sites More sharing options...
Grenville Posted February 21, 2014 Share Posted February 21, 2014 Eric, great anecdote for us who are observing the company from the outside! Musk is building loyalty and upping the game. Question for you Eric. I read an article in Thursday's WSJ which said that they are offering free high speed data and internet radio to the cars for four years. Any color on this? Here's the info in the WSJ article: It announced Wednesday the addition of free high-speed data connections and Internet radio to customers for four years. "Tesla Projects Big Increase in Production" http://online.wsj.com/news/articles/SB10001424052702303636404579393391643110198?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702303636404579393391643110198.html Link to comment Share on other sites More sharing options...
ERICOPOLY Posted February 21, 2014 Share Posted February 21, 2014 Eric, great anecdote for us who are observing the company from the outside! Musk is building loyalty and upping the game. Question for you Eric. I read an article in Thursday's WSJ which said that they are offering free high speed data and internet radio to the cars for four years. Any color on this? Here's the info in the WSJ article: It announced Wednesday the addition of free high-speed data connections and Internet radio to customers for four years. "Tesla Projects Big Increase in Production" http://online.wsj.com/news/articles/SB10001424052702303636404579393391643110198?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702303636404579393391643110198.html It was announced when they released their financials. Initially when I bought the car there was talk that they would begin charging money after a few months -- so it was a surprise to hear that we will get an additional four years for free. I use the Slacker internet radio all the time. Link to comment Share on other sites More sharing options...
ERICOPOLY Posted February 23, 2014 Share Posted February 23, 2014 Article about the planned Tesla battery plant: http://money.cnn.com/2014/02/22/autos/tesla-gigafactory/index.html?hpt=hp_t2 The size of the plant will be massive. Musk predicted in November that it would have a capacity equal to all factories making lithium ion batteries around the globe. That includes lithium batteries going into Teslas as well as laptops, tablets and smart phones. The company has given no clues about the cost of the plant, though Musk suggested Wednesday the company may issue more shares of its high-flying stock to raise some of the cash it needs to build it. Kallo thinks the plant could cost $2 billion to $5 billion. Irwin says the cost could top $10 billion. Link to comment Share on other sites More sharing options...
ERICOPOLY Posted February 23, 2014 Share Posted February 23, 2014 I don't think the short sellers have any real idea of what Tesla's IV is. Shorting it just seems speculative. Link to comment Share on other sites More sharing options...
ERICOPOLY Posted February 24, 2014 Share Posted February 24, 2014 Tesla service at my house! These guys are awesome. I bet Porsche doesn't do that. Link to comment Share on other sites More sharing options...
Grenville Posted February 24, 2014 Share Posted February 24, 2014 very nice! I assume that is the ranger service. Link to comment Share on other sites More sharing options...
Liberty Posted February 24, 2014 Share Posted February 24, 2014 Eric, is your next step buying a ride on a SpaceX rocket? I can't wait for the news on the gigafactory this week. I think it could be a real gamechanger, bringing the cost of batteries way down and paving the way for their mass-market EV in 3-4 years. Those of you who are still short might want to read up on that gigafactory. Looking at the history of Tesla, I'm pretty sure the market will be positively surprised by the size, partners, and future battery pack cost-projections. Link to comment Share on other sites More sharing options...
ERICOPOLY Posted February 24, 2014 Share Posted February 24, 2014 Eric, is your next step buying a ride on a SpaceX rocket? Never -- too scary. The next step is buying a Tesla Model X next year for my wife to drive. She hates having to fill her BMW with gas. She is envious that I never have to stop for gas, I never have to think about the oil level, the oil change, and bringing it into the shop for annual service. All of that annoying car ownership stuff -- it all disappears with Tesla. Link to comment Share on other sites More sharing options...
ERICOPOLY Posted February 25, 2014 Share Posted February 25, 2014 So it seems like market cap of TSLA has now caught up with Porsche. Link to comment Share on other sites More sharing options...
value-is-what-you-get Posted February 25, 2014 Share Posted February 25, 2014 Article about the planned Tesla battery plant: http://money.cnn.com/2014/02/22/autos/tesla-gigafactory/index.html?hpt=hp_t2 The size of the plant will be massive. Musk predicted in November that it would have a capacity equal to all factories making lithium ion batteries around the globe. That includes lithium batteries going into Teslas as well as laptops, tablets and smart phones. The company has given no clues about the cost of the plant, though Musk suggested Wednesday the company may issue more shares of its high-flying stock to raise some of the cash it needs to build it. Kallo thinks the plant could cost $2 billion to $5 billion. Irwin says the cost could top $10 billion. That battery plant keeps on getting cheaper if they pay for it in TSLA stock! There has been speculation about Apple's M&A person talking to Musk and icars and other foolishness but is it not reasonable to assume a great partnership between the two on this battery plant? Apple\s got tons of money and uses tons of batteries. It would actually be a sensible and prudent use of their cash - as opposed to buying an instant messaging app or something similar. Link to comment Share on other sites More sharing options...
ERICOPOLY Posted February 25, 2014 Share Posted February 25, 2014 Article about the planned Tesla battery plant: http://money.cnn.com/2014/02/22/autos/tesla-gigafactory/index.html?hpt=hp_t2 The size of the plant will be massive. Musk predicted in November that it would have a capacity equal to all factories making lithium ion batteries around the globe. That includes lithium batteries going into Teslas as well as laptops, tablets and smart phones. The company has given no clues about the cost of the plant, though Musk suggested Wednesday the company may issue more shares of its high-flying stock to raise some of the cash it needs to build it. Kallo thinks the plant could cost $2 billion to $5 billion. Irwin says the cost could top $10 billion. That battery plant keeps on getting cheaper if they pay for it in TSLA stock! There has been speculation about Apple's M&A person talking to Musk and icars and other foolishness but is it not reasonable to assume a great partnership between the two on this battery plant? Apple\s got tons of money and uses tons of batteries. It would actually be a sensible and prudent use of their cash - as opposed to buying an instant messaging app or something similar. Tesla supplies batteries to Solar City as well -- the residential battery packs. So you can imagine this plant to be producing lots of batteries for homes and businesses to store energy off-peak for use during peak. Link to comment Share on other sites More sharing options...
Grenville Posted February 25, 2014 Share Posted February 25, 2014 You could imagine a company like Apple partnering with Tesla on the factory, but on the Q4 CC they elude to the fact that all the capacity of this factory will be needed for Tesla and SolarCity. Link to comment Share on other sites More sharing options...
Liberty Posted February 25, 2014 Share Posted February 25, 2014 I actually wouldn't be that surprised if Apple was a partner on the factory, along with probably Panasonic. Apple has been making noise for a while that they want to bring back more manufacturing to the US (they did it with the new Mac Pro), but they won't do it if it results in much higher costs. Something like a massive battery factory that makes the lowest-cost and highest-quality batteries in the world would fit the bill perfectly. Even from a branding perspective, people don't give a crap about most batteries, they're the ultimate commodity... Except maybe for Tesla batteries. Saying you have a Tesla battery in your iPhone 7 or Macbook Pro would be very attractive to many people. Link to comment Share on other sites More sharing options...
ERICOPOLY Posted February 26, 2014 Share Posted February 26, 2014 Oh, they don't make the Michelin Pilot Sport tires that go on the performance plus vehicle. So they're not vertically integrated. That's another one to bring up. Except that the battery is 50% of the cost of the car so having cost advantages in battery production actually DOES matter. This is an excellent point to revisit in light of news of the upcoming battery factory. Still not vertically integrated? BTW: How come I haven't seen a BYD car on the road? Link to comment Share on other sites More sharing options...
wescobrk Posted February 26, 2014 Share Posted February 26, 2014 Anyone on this board make a lot of money on tesla stock? I made zero as I never bought a share. I thought about buying a small amount after the ridiculous media coverage over the fires but never did. The stock has doubled since then. Link to comment Share on other sites More sharing options...
Liberty Posted February 26, 2014 Share Posted February 26, 2014 Anyone on this board make a lot of money on tesla stock? I made zero as I never bought a share. I thought about buying a small amount after the ridiculous media coverage over the fires but never did. The stock has doubled since then. I've never owned any. I probably should have bought a few sometime after the IPO as a speculative bet since I've followed the company since 2006 and was pretty sure they'd eventually do great things.. Oh well, this one falls in the "interesting to learn about" pile, not the "invest into" pile. Link to comment Share on other sites More sharing options...
no_thanks Posted February 26, 2014 Share Posted February 26, 2014 Anyone on this board make a lot of money on tesla stock? I made zero as I never bought a share. I thought about buying a small amount after the ridiculous media coverage over the fires but never did. The stock has doubled since then. I've never owned any. I probably should have bought a few sometime after the IPO as a speculative bet since I've followed the company since 2006 and was pretty sure they'd eventually do great things.. Oh well, this one falls in the "interesting to learn about" pile, not the "invest into" pile. I bought a tiny amount at 37 so I wouldn't be ashamed when my grandkids ask about it 50 years from now. I couldn't believe it went to 60 though, and sold :) I'll tell the grandkids I had principles when they ask for big expensive presents. Link to comment Share on other sites More sharing options...
gary17 Posted February 26, 2014 Share Posted February 26, 2014 They are in China and they focus on busses. There are no tesla outside of North America either. But I see your point. Oh, they don't make the Michelin Pilot Sport tires that go on the performance plus vehicle. So they're not vertically integrated. That's another one to bring up. Except that the battery is 50% of the cost of the car so having cost advantages in battery production actually DOES matter. This is an excellent point to revisit in light of news of the upcoming battery factory. Still not vertically integrated? BTW: How come I haven't seen a BYD car on the road? Link to comment Share on other sites More sharing options...
jeffmori7 Posted February 26, 2014 Share Posted February 26, 2014 They are in China and they focus on busses. There are no tesla outside of North America either. But I see your point. Oh, they don't make the Michelin Pilot Sport tires that go on the performance plus vehicle. So they're not vertically integrated. That's another one to bring up. Except that the battery is 50% of the cost of the car so having cost advantages in battery production actually DOES matter. This is an excellent point to revisit in light of news of the upcoming battery factory. Still not vertically integrated? BTW: How come I haven't seen a BYD car on the road? Sorry Gary, but there is even a Supercharger network in Europe, and they recently started to sell in China also. So Tesla is already international. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now