Tesla stock

Not me but other stock holders are faced with a Hobson's Choice:

• Traditional ICE vehicle - more expensive fuel but relatively declining market share
• Hybrid vehicle - less expensive fuel but more parts that can fail
• Electric vehicle - least expensive fuel but rapidly advancing technology

In our free market, we have the options to store our excess capital. The first is declining as a percentage. The second is growing but faces a long term challenge. The third has long legs but we can only take a snapshot of what technology is available.

Bob Wilson

 

Selling locks in a loss or minimizes future losses. The Q1 2024 financials are being released in three weeks.

I sell TSLA when I have another expense that needs to be covered. Because of their technology, I'm also holding a higher risk, REE stock to see what they do.

Bob Wilson

 

I would rather see a $30,000 Tesla Model 3 Standard Range. I already have a $24,000 after trade-in, Tesla Model 3 Std Rng Plus. So I think better effort would be to optimize the lower trim, Model 3:

• Right size wheels and tires - save 100 lbs with longer lasting, affordable tires
• Casting front and rear structures - save another 100 lbs and reduces manufacturing cost
• Modular assembly - rear, sides, front, and seat-battery modules assembled at the end
  • also reduces paint costs and improves quality
• 48 V electronics - saves weigh and eliminates a bunch of mechanical kludges
• LiFePO batteries - saves weight, cost, and longer life
• Gorilla glass - minimizes rock strike replacement
• Optimus robots - reduces labor costs and risks

At $30,000, it will still under cut pretty much everything else. Then apply these advances to the existing models to make a low cost version of each.

Bob Wilson

 

Always best to read the source; https://www.reuters.com/business/autos-transportation/tesla-scraps-low-cost-car-plans-amid-fierce-chinese-ev-competition-2024-04-05/

. . .
Musk has wavered on the project before. In a biography of the entrepreneur released last year, author Walter Issacson reported that Musk in 2022 “put a hold on” the entry-level EV plans, reasoning that a Tesla robotaxi would make the car irrelevant. Musk’s advisors urged him to stay the course, the book said.
. . .​

Every investor needs to follow their understanding for investing which has a lot to do with personal history. So I prefer leading edge technology but am sympathetic to those driven by other dreams.

I'm not selling my Tesla stock because I don't see a better one to trade into. Subject to new facts and data, I'm in for the ride.

As for the short term, Tesla has built an inventory in Q1 that has been announced to go on sale in Q2. The production expense has already been paid in Q1. The inventory reduction sale will be a revenue boost in Q2. This will affect margins in Q1 and Q2 but how badly we'll see in the quarterly financials.

Bob Wilson

 

Found this video in an e-mail Tesla sent out:

This may be a prelude to booking FSD in Q2 2024. Tesla held some part of FSD payments in abeyance while it was listed as "beta." I look forward to testing it.

Caution about Fisker, and other EV startups going bankrupt. They are not Tesla and have (had) a different business model. It is bad enough that Tesla will not take a Fisker as a trade-in.

Bob Wilson

 

No problem as it took me three weeks to feel comfortable with Autopilot in 2019. Testing revealed the problems and became adept at handling them.

Just a suggestion, you might approach Tesla about a 'test drive' in the future. If they ask for a referral code, plz use mine as I can get some 'Tesla bucks' (i.e., some free charging.) Otherwise, I'll have to hijack you in Florida and force you to drive FSD. <GRINS>

Bob Wilson

 

Initial impression from the Q1 audio, the '18% margin' means I'm not selling. But I want to read the transcript and Q1 financials. Furthermore, some past efforts have not been so successful . . . but you need to remember what they were.

Bob Wilson