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Tech Thread

MindzEye said:
Most growth phase companies show similar growth curves though...

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and revenue has been flat for since 2023....how many "growth" stocks can you find that 4x over a 2 year span with flat revenues (and declining sales)?
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Yup! Simply saying that they did a fabulous job executing up until a couple of years ago. Many, including myself, questioned and even doubted their ability to do what they did. Elon built a nice brand before hilariously sabotaging it in the last couple of years.
 
Preston said:
Yup! Simply saying that they did a fabulous job executing up until a couple of years ago. Many, including myself, questioned and even doubted their ability to do what they did. Elon built a nice brand before hilariously sabotaging it in the last couple of years.
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Fabulous is a strong word imo considering the hilarious amount of money that the company raised on Wall St.

I mean, they've raised somewhere in the range of 25B (hard to find an exact number) to become the ~14th largest automaker in the world in terms of units sold and look unlikely to remain even that high moving forward with the epic destruction of the brand over the last 6 months.

The stock has been hilariously disconnected from the performance of the core business since basically forever. The stock has performed historically well, while the company has performed fine-ish while getting a performance boost from multiple national governments that no other auto manufacturer gets.
 
Preston said:
I mean they obviously did fabulous
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Why is that obvious? They raised a titanic amount of money for a car company, and appear to have peaked out as the 14th largest car manufacturer by unit sales. Why is that obviously fabulous "executing"? By what auto manufacturing metric have then executed fabulously?
 
They did exactly what naysayers like myself said they wouldn't be able to do. Fabulous execution and turned themselves into a realgud corporation. I hate Elon too, but I can separate my distaste for him with the success of the corporation.
 
Tesla's revenue went from $4 billion in 2015 to $81.5 billion in 2022

Tesla's gross margins went to over 25%. Show me another automaker with those margins

Tesla went from doing nothing but burn cash aggressively to obtaining almost $8b in free cash flow a couple years ago. They also cleaned up a very sketchy looking high debt balance sheet in the process.

This is not even touching upon the tech part of their operations.

If this is not fabulous execution then I do not want to be evaluated by ME in life.
 
Tldr: I hate Elon too. I think he's highly overrated. But I don't think being disingenuous about the success of Tesla is the path for me personally.
 
Preston said:
Tldr: I hate Elon too. I think he's highly overrated. But I don't think being disingenuous about the success of Tesla is the path for me personally.
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There's nothing disingenuous about it though. I'm not arguing that they haven't been successful. But being successful and "executing" aren't the same thing.

For example, this is a better argument for Tesla's execution:

automakers-their-profitability-v0-qm7ywrxl6dpd1.jpeg


Tesla had a net income of 7.1 Billion last year, and a decent looking operating margin as a company. That's execution. Now, I would then point out that the 2.4 Billion they took in on regulatory credits is included in the 7.1 Billion and without those they had a net of 4.7B which would have made their operation margin around 4.5%, which would be below average among international automakers....but those government welfare credits exist, so it is what it is.
 
Preston said:
Tesla's revenue went from $4 billion in 2015 to $81.5 billion in 2022

Tesla's gross margins went to over 25%. Show me another automaker with those margins

Tesla went from doing nothing but burn cash aggressively to obtaining almost $8b in free cash flow a couple years ago. They also cleaned up a very sketchy looking high debt balance sheet in the process.

This is not even touching upon the tech part of their operations.

If this is not fabulous execution then I do not want to be evaluated by ME in life.
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Are you enjoying your cybertruck?
 
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