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When Tesla was $ 215, one of my best managers, Gorden Lam, told us that The Catalyst For Tesla is a production. It took longer to arrive here than he expected, but it looks like Tesla will become profitable this quarter or next year. With a current value of $ 290, Gorden has grown by 35% in the last 26 months, but the real benefit is still ahead. This is the perfect time to buy Tesla, especially if you have other capital gains this year.
Is Tesla about to become profitable? (AP Photo / Richard Vogel, File)
After Tesla confirmed in its latest earnings call that the company was producing 5,000 models 3 a week, the stock jumped from $ 50 to $ 350 on the next trading day. Without the direct mistakes of Elon Musk, Tesla would still be trading around $ 350. However, the tweet "secured financing", pedophile charges and drug use have cast doubt on Elon Musk's mental health, giving investors another chance to buy the stock below $ 300. .
The mistakes made by Musk cost Tesla two of his biggest supporters on Wall Street.
Romant Shah, an analyst with Nomura Instinet, demoted Tesla yesterday in a neutral position due to "the misbehavior of CEO Elon Musk".
Gene Muster, Managing Partner at Loup Ventures said:
We believe in Tesla and its mission. We want the company to succeed, but the increasingly alarming actions of Elon Musk have brought the company to a crossroads.
Tesla still needs Elon Musk
Whatever you think of the recent behavior of Elon Musk, I have no doubt that no one else could have brought Tesla to overcome all the challenges that he overcame up to the end. present. Steve Jobs is one of the few people who could accomplish this feat. And, as we have just learned from her daughter's book, some aspects of her personality can also be described as erratic.
The fact is that it takes an unusual personality to succeed when many people do not just want you to fail, but to bet on them. Elon Musk and Steve Jobs both managed several times after Wall Street thought they had finished.
Elon Musk is part of a handful of people who could start with a vision and build a valued multi-billion dollar business. However, once the business is profitable, there are many other people who can take a profitable business with huge competitive advantages and develop it from there.
Is production on track?
In a note of September 7th, Musk says:
We are about to have the most amazing quarter in our history, building and delivering more than twice as many cars as last quarter.
In the last quarter, Tesla produced 53,339 vehicles and delivered 40,740 vehicles. To build twice as many cars this quarter, Tesla has to produce about 8900 cars a week. In the last conference call, Tesla reported producing 5,000 models 3 per week in the last two weeks of June. To go from 5000 Model 3 per week to 8900 seems to be a goal, but it is possible to achieve it. Gorden Lam told us two years ago that:
Production can be slow in the first few months, but once the cycle has been perfect, you can expect instant, not slow acceleration.
With this in mind, I take good news that Tesla has decided to remove two color options to speed up production.
Is Tesla about to be profitable?
Revenue is recognized upon delivery. Thus, even if production is on track, deliveries must resume before profits can be recognized. That's why I take it as an encouraging sign that last weekend, Tesla sent the following message to some model 3 reservation holders:
This weekend, we are organizing an exclusive delivery event in Fremont, California. As the future owner of Model 3 in the Bay Area, you have the opportunity to pick up your model 3 earlier than planned.
If Tesla doubles the number of cars delivered in the second quarter, will they be profitable? I think it's in the right position to the point that it depends on the product mix. However, it is encouraging that during the delivery event last weekend, the All-wheel drive or Performance 3 configurations, which are the most expensive cars, are exhausted.
What is the trend?
If production is on track, I think we'll come back to the $ 350 level we saw last just after the last call for results, and before Musk's non-forced mistakes.
If Tesla reports profits, we could return to the $ 380 level that was briefly reached after Musk's "secure financing" tweet. After that, the continuation of the good execution should bring us beyond the 420 dollars that Musk considered to be a fair price to offer to the shareholders.
My catchBecause Tesla rebounded slightly from the low of $ 260 last week, it's hard for some to pull the trigger at $ 290. But Wayne Himelsein, another of my managers, likes to say:
The best time to buy a stock is just before you take a big step forward. It does not matter if you have not bought it at the lowest price.
Two weeks ago, while Tesla was $ 323, Wayne suggested we stay away from Tesla. It was a good call.
But at $ 290, recent signs of improved production and deliveries make Tesla an attractive investment for up to 5% of the portfolio, especially for those with other capital gains this year.
If we make a mistake and Tesla goes down, it will be because of problems that will last more than 30 days. As a result, if we lose Tesla at the end of the year, we will most likely sell and stay for at least 30 days. This allows us to offset the loss with other capital gains to reduce taxable capital gains this year.
If we are right and Tesla is at a point of inflection, there is a lot of potential from here.
It's good to be able to invest knowing that if it does not work, you will recover a good deal of your losses on your tax return.
If you would like to receive updates when Gorden Lam or Wayne Himelsein update their views, click on their names.
If you want to be notified when I write about Tesla or other titles, you and me, click here.
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When Tesla was $ 215, one of my best managers, Gorden Lam, told us that The Catalyst For Tesla is a production. It took longer to arrive here than he expected, but it looks like Tesla will become profitable this quarter or next year. With a current value of $ 290, Gorden has grown by 35% in the last 26 months, but the real benefit is still ahead. This is the perfect time to buy Tesla, especially if you have other capital gains this year.
Is Tesla about to become profitable? (AP Photo / Richard Vogel, File)
After Tesla confirmed in its latest earnings call that the company was producing 5,000 models 3 a week, the stock jumped from $ 50 to $ 350 on the next trading day. Without the direct mistakes of Elon Musk, Tesla would still be trading around $ 350. However, the tweet "secured financing", pedophile charges and drug use have cast doubt on Elon Musk's mental health, giving investors another chance to buy the stock below $ 300. .
The mistakes made by Musk cost Tesla two of his biggest supporters on Wall Street.
Romant Shah, an analyst with Nomura Instinet, demoted Tesla yesterday in a neutral position due to "the misbehavior of CEO Elon Musk".
Gene Muster, Managing Partner at Loup Ventures said:
We believe in Tesla and its mission. We want the company to succeed, but the increasingly alarming actions of Elon Musk have brought the company to a crossroads.
Tesla still needs Elon Musk
Whatever you think of the recent behavior of Elon Musk, I have no doubt that no one else could have brought Tesla to overcome all the challenges that he overcame up to the end. present. Steve Jobs is one of the few people who could accomplish this feat. And, as we have just learned from her daughter's book, some aspects of her personality can also be described as erratic.
The fact is that it takes an unusual personality to succeed when many people do not just want you to fail, but to bet on them. Elon Musk and Steve Jobs both managed several times after Wall Street thought they had finished.
Elon Musk is part of a handful of people who could start with a vision and build a valued multi-billion dollar business. However, once the business is profitable, there are many other people who can take a profitable business with huge competitive advantages and develop it from there.
Is production on track?
In a note of September 7th, Musk says:
We are about to have the most amazing quarter in our history, building and delivering more than twice as many cars as last quarter.
In the last quarter, Tesla produced 53,339 vehicles and delivered 40,740 vehicles. To build twice as many cars this quarter, Tesla has to produce about 8900 cars a week. In the last conference call, Tesla reported producing 5,000 models 3 per week in the last two weeks of June. To go from 5000 Model 3 per week to 8900 seems to be a goal, but it is possible to achieve it. Gorden Lam told us two years ago that:
Production can be slow in the first few months, but once the cycle has been perfect, you can expect instant, not slow acceleration.
With this in mind, I take good news that Tesla has decided to remove two color options to speed up production.
Is Tesla about to be profitable?
Revenue is recognized upon delivery. Thus, even if production is on track, deliveries must resume before profits can be recognized. That's why I take it as an encouraging sign that last weekend, Tesla sent the following message to some model 3 reservation holders:
This weekend, we are organizing an exclusive delivery event in Fremont, California. As the future owner of Model 3 in the Bay Area, you have the opportunity to pick up your model 3 earlier than planned.
If Tesla doubles the number of cars delivered in the second quarter, will they be profitable? I think it's in the right position to the point that it depends on the product mix. However, it is encouraging that during the delivery event last weekend, the All-wheel drive or Performance 3 configurations, which are the most expensive cars, are exhausted.
What is the trend?
If production is on track, I think we'll come back to the $ 350 level we saw last just after the last call for results, and before Musk's non-forced mistakes.
If Tesla reports profits, we could return to the $ 380 level that was briefly reached after Musk's "secure financing" tweet. After that, the continuation of the good execution should bring us beyond the 420 dollars that Musk considered to be a fair price to offer to the shareholders.
My catchBecause Tesla rebounded slightly from the low of $ 260 last week, it's hard for some to pull the trigger at $ 290. But Wayne Himelsein, another of my managers, likes to say:
The best time to buy a stock is just before you take a big step forward. It does not matter if you have not bought it at the lowest price.
Two weeks ago, while Tesla was $ 323, Wayne suggested we stay away from Tesla. It was a good call.
But at $ 290, recent signs of improved production and deliveries make Tesla an attractive investment for up to 5% of the portfolio, especially for those with other capital gains this year.
If we make a mistake and Tesla goes down, it will be because of problems that will last more than 30 days. As a result, if we lose Tesla at the end of the year, we will most likely sell and stay for at least 30 days. This allows us to offset the loss with other capital gains to reduce taxable capital gains this year.
If we are right and Tesla is at a point of inflection, there is a lot of potential from here.
It's good to be able to invest knowing that if it does not work, you will recover a good deal of your losses on your tax return.
If you would like to receive updates when Gorden Lam or Wayne Himelsein update their views, click on their names.
If you want to be notified when I write about Tesla or other titles, you and me, click here.
