Tesla stock

Anything done to entice people to buy a product can be called a marketing strategy.
They aren't all like advertising or stunts to draw people into dealers, some add value to the product.

Making TSS standard equipment is a marketing strategy that adds value.

 

What is TSS?

When something is made first to be useful, I still don't believe you can call it a marketing strategy, but I understand how someone can get there with semantics.

 

Toyota Safety System(s) - it is the auto braking and other advanced driver aids.

I object more on the tone of the phrase. Market strategy could imply a plan to manipulate consumers without giving them extra value.

 

someone made a fortune overnight!

 

Only on paper. If they realized their fortunes the price would drop.

 

for everyone else

i should have bought at $180.

 

I am not impressed. Yet. On the 97,000 vehicles sold, the $143 million is a pittance. It is less than $1500 per vehicle, or about 2.5% profit on an average $55,000 unit price (my guess). The jump in price was fueled by a very high (frenzy) of trades, which is standard for emotional price spikes, not thoughtful analysis. Keep in mind, also, that the closing price today is still nearly 90 points under their high for the last rolling 12 months.

 

I'll stick with my 13% and 14% annuals since 2008.

 

what is an annual?

 

sure, but that price was also an aberration

 

For a lot of businesses, 2.5% of margin up or down is the difference between a failed quarter and a successful one.

If they had lost $1500 per vehicle you can bet that they would be numerous shorts blabbing everywhere about it

Mike

 

All stock prices are aberrations. Profitability is a calculation.

I don't see Tesla being profitable this year. Maybe not next. They must have burned over $6 billion in the past several years and have never had a profitable year. One of my buddies at the analyst office where I work said that we have hit "peak Tesla." At some point, units have to start throwing off profits. You can't make it up in volume.

The biggest risk for Tesla, in my mind, is delivering on the "full self-driving" promise. I don't think it is possible with the varieties of road conditions and weather variables. Already, Tesla vehicles for which owners paid for "full self driving" are being sold off or scrapped with not one mile of the promised experience. The smart summon feature, for instance, is a circus trick with the same value as the 3 second zero to 60 elapsed time (which is interesting, but meaningless).

Two things that I don't see many comment about is that revenue is down and volume growth is essentially flat. Tesla must focus on cash flow and profit, in my mind. Tesla has lost money on virtually every car it has sold. Toyota, on the other hand, makes nearly $3000 dollars on every vehicle it produces. Profit cannot be made up in volume.

 

well, their a long way from legacy car makers, but they can go under too, although the japanese government would probably never let that happen.

unrelated to the stock killing some made,

i think they are making good progress in growth, presence and technology and quality

and tweetlessness

 

well done!

the sheeples are at it again, up 20 more points

 

1. Denial
2. Anger
3. Bargaining
4. Depression
5. Acceptance

 

i read the market cap just moved above gm

 

'vdub ceo says tesla is a strong competitor'