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Gotta give it to Elon, he's really getting creative

JamieDimonsBalls

JamieDimonsBalls

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How Tesla uses cash from Nevada casinos to boost its bottom line

http://www.latimes.com/business/autos/la-fi-hy-tesla-nevada-casino-credits-20180624-story.html

Given Elon Musk’s dubious track record for hitting his goals, it may be a roll of the dice whether the Tesla CEO delivers a profit later this year. Fittingly, his success will depend partly on money from Nevada casinos.

Since 2015, Tesla has boosted its bottom line by selling tax credits to casinos such as the MGM Grand.

The casinos use the credits, purchased at a discount, to lower the gambling taxes they pay the state. Tesla uses the proceeds to ease its losses or increase its profit. Musk told investors on June 5 that “it’s looking like” the company will be profitable later this year.

So far, Tesla has sold $131 million in credits to casinos and has booked a total of $163 million in anticipation of more sales soon.

Millions more will probably be used in the quarters ending in September and December. That could be enough to swing a loss to a profit for the company.
 
JamieDimonsBalls said:
How Tesla uses cash from Nevada casinos to boost its bottom line

http://www.latimes.com/business/autos/la-fi-hy-tesla-nevada-casino-credits-20180624-story.html

Given Elon Musk’s dubious track record for hitting his goals, it may be a roll of the dice whether the Tesla CEO delivers a profit later this year. Fittingly, his success will depend partly on money from Nevada casinos.

Since 2015, Tesla has boosted its bottom line by selling tax credits to casinos such as the MGM Grand.

The casinos use the credits, purchased at a discount, to lower the gambling taxes they pay the state. Tesla uses the proceeds to ease its losses or increase its profit. Musk told investors on June 5 that “it’s looking like” the company will be profitable later this year.

So far, Tesla has sold $131 million in credits to casinos and has booked a total of $163 million in anticipation of more sales soon.

Millions more will probably be used in the quarters ending in September and December. That could be enough to swing a loss to a profit for the company.
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I found his tent plant.....made up of stuff laying around the existing plant....even more amusing.

https://www.bloomberg.com/news/articles/2018-06-25/the-future-of-tesla-hinges-on-this-gigantic-tent
 
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More fun Tesla news:

https://www.wsj.com/articles/tesla-asks-suppliers-for-cash-back-to-help-turn-a-profit-1532301091

Tesla Inc. TSLA +1.16% has asked some suppliers to refund a portion of what the electric-car company has spent previously, an appeal that reflects the auto maker’s urgency to sustain operations during a critical production period.

The Silicon Valley electric-car company said it is asking its suppliers for cash back to help it become profitable, according to a memo reviewed by The Wall Street Journal that was sent to a supplier last week. Tesla requested the supplier return what it calls a meaningful amount of money of its payments since 2016, according to the memo.

The auto maker’s memo, sent by a global supply manager, described the request as essential to Tesla’s continued operation and characterized it as an investment in the car company to continue the long-term growth between both players.
 
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For those that don't know... this is not market. The equity markets for TSLA are completely irrational given this:

 
JamieDimonsBalls said:
Don't worry, Elon will have a atypical conference call or start tweeting to distract people from the underlying problems. Sound familiar?
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Absolutely. I have referred to him as the Donald Trump of the tech world on many occasions. But his recent tirade against the guy involved in the Thailand cave rescue was especially Trumpian.
 
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JamieDimonsBalls said:
Timing is everything
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I bought when it went into the 150’s.....then sold out. I don’t want any of the equities. I have traded the options heavily but because the underlying is so irrational, it makes it difficult. Waiting for that bubble to burst but it won’t until his money is shut off.

I don’t understand the whole tax credit market either. What a crock.
 
Hoosier_Hack said:
I bought when it went into the 150’s.....then sold out. I don’t want any of the equities. I have traded the options heavily but because the underlying is so irrational, it makes it difficult. Waiting for that bubble to burst but it won’t until his money is shut off.

I don’t understand the whole tax credit market either. What a crock.
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Doesn't the volatility in share price help your options trading or are you taking a specific stance on the trade (i.e. not trading its vol)?
 
JamieDimonsBalls said:
Doesn't the volatility in share price help your options trading or are you taking a specific stance on the trade (i.e. not trading its vol)?
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It does help with option prices but predicting which way it goes.....eh. I have CNBC on and I watch it for any TSLA news because it moves on news reports if I am in the options. I like a little more predictability in the underlying myself.

I think with the strength of the economy and willingness of investors to take some risk, Tesla will continue to be around. I don’t think it is valued correctly at all.
 
Hoosier_Hack said:
It does help with option prices but predicting which way it goes.....eh. I have CNBC on and I watch it for any TSLA news because it moves on news reports if I am in the options. I like a little more predictability in the underlying myself.

I think with the strength of the economy and willingness of investors to take some risk, Tesla will continue to be around. I don’t think it is valued correctly at all.
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That's the problem with valuation, it's in the eye of the beholder... or in this case, shareholders.
 
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JamieDimonsBalls said:
That's the problem with valuation, it's in the eye of the beholder... or in this case, shareholders.
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The strength Tesla has is the amount of shares held by institutions in my opinion. Remarkable. When you see big blocks selling ....RUN! You are 100% right on the valuations.....
 
JamieDimonsBalls said:
More fun Tesla news:

https://www.wsj.com/articles/tesla-asks-suppliers-for-cash-back-to-help-turn-a-profit-1532301091

Tesla Inc. TSLA +1.16% has asked some suppliers to refund a portion of what the electric-car company has spent previously, an appeal that reflects the auto maker’s urgency to sustain operations during a critical production period.

The Silicon Valley electric-car company said it is asking its suppliers for cash back to help it become profitable, according to a memo reviewed by The Wall Street Journal that was sent to a supplier last week. Tesla requested the supplier return what it calls a meaningful amount of money of its payments since 2016, according to the memo.

The auto maker’s memo, sent by a global supply manager, described the request as essential to Tesla’s continued operation and characterized it as an investment in the car company to continue the long-term growth between both players.
Click to expand...

That's genius. I wonder if this would work on a smaller scale. Like say I go back to all the bars I've gotten drunk at over the years and asked for "cash back" on my previous beverage purchases. Hell, I'd be rolling it it.
 
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Hank Reardon said:
That's genius. I wonder if this would work on a smaller scale. Like say I go back to all the bars I've gotten drunk at over the years and asked for "cash back" on my previous beverage purchases. Hell, I'd be rolling it it.
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I don’t think it’s uncommon. Ford and GM were notorious squeezing tier suppliers. It is a common practice in construction also.
 
Hoosier_Hack said:
I don’t think it’s uncommon. Ford and GM were notorious squeezing tier suppliers. It is a common practice in construction also.
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Well sure, but that was when everything went to shit. Are you suggesting the same will happen to TSLA?
 
It just keeps getting more wild for Elon as things unravel... tweets out that he wants to take TSLA private at $420 per share (a huge premium to where it was trading), which translates to $71.3B. There isn't a chance in hell he could get the debt for the LBO. Interested to see if the toothless SEC is going to do something.

Shares halted.
 
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JamieDimonsBalls said:
It just keeps getting more wild for Elon as things unravel... tweets out that he wants to take TSLA private at $420 per share (a huge premium to where it was trading), which translates to $71.3B. There isn't a chance in hell he could get the debt for the LBO. Interested to see if the toothless SEC is going to do something.

Shares halted.
Click to expand...
They should. But does the SEC have the cojones to do something?
 
JamieDimonsBalls said:
It just keeps getting more wild for Elon as things unravel... tweets out that he wants to take TSLA private at $420 per share (a huge premium to where it was trading), which translates to $71.3B. There isn't a chance in hell he could get the debt for the LBO. Interested to see if the toothless SEC is going to do something.

Shares halted.
Click to expand...

LOL
 
Rockport Zebra said:
If hasn't secured the funding as he stated today then he is in deep with SEC rules.
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It should make him produce a term sheet ASAP. With worsening cash problems and zero ability to service debt with cash, he'd have to raise even more equity to pay off the debt.
 
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JamieDimonsBalls said:
It should make him produce a term sheet ASAP. With worsening cash problems and zero ability to service debt with cash, he'd have to raise even more equity to pay off the debt.
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How did this company start? Seed money from the congress of 09 and 10? 3 companies really.
 
twenty02 said:
That was my thought as soon as I heard this nonsense.
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It's literally insane to think that a Company that cannot service debt because it has negative operating cash flow would be able to do an LBO. And even if you concede that maybe Musk misinterpreted the terminology and meant it was going to be an all-equity buyout and take private, that makes even less sense.

Institutional investors are going to pay a significant premium to buy out public shareholders and take equity stakes in less liquid securities? I mean, GTFO.
 
JamieDimonsBalls said:
It's literally insane to think that a Company that cannot service debt because it has negative operating cash flow would be able to do an LBO. And even if you concede that maybe Musk misinterpreted the terminology and meant it was going to be an all-equity buyout and take private, that makes even less sense.

Institutional investors are going to pay a significant premium to buy out public shareholders and take equity stakes in less liquid securities? I mean, GTFO.
Click to expand...

This would be the largest deal in history...yet nobody on the street...including the large IBs....has heard a thing about it?
 
JamieDimonsBalls said:
It's literally insane to think that a Company that cannot service debt because it has negative operating cash flow would be able to do an LBO. And even if you concede that maybe Musk misinterpreted the terminology and meant it was going to be an all-equity buyout and take private, that makes even less sense.

Institutional investors are going to pay a significant premium to buy out public shareholders and take equity stakes in less liquid securities? I mean, GTFO.
Click to expand...


Pretty pleased with the TSLA puts I bought first thing this AM!
 
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JamieDimonsBalls said:
https://www.marketwatch.com/press-r...-investigation-into-tesla-inc-tsla-2018-08-09

I hope this leads to lawsuit after lawsuit
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He reminds of someone in politics that uses Twitter at his own detriment.... ego. He made the claim he wouldn’t need to raise money this year when every analyst said he would towards the end of the year. His quarterly calls are absolutely insane. It will be interesting to watch unfold. Something tells me when it all shakes out a buy opportunity will be staring us in the face.
 
Musk is going to lose TSLA

https://www.reuters.com/article/us-...ankrolling-tesla-buyout-sources-idUSKBN1KW0FA

Investors and analysts viewed PIF as a natural financing partner. Beyond amassing a stake of just below 5 percent in Tesla, the sovereign wealth fund has poured tens of billions of dollars into technology investments, including $45 billion in SoftBank Group Corp’s (9984.T) Vision Fund over five years.


However, a source who is familiar with PIF’s strategy said it was not currently getting involved in any funding process for Tesla’s take-private deal.
 
https://www.reuters.com/article/us-...essNews+(Business+News)&utm_source=reddit.com

Tesla Inc’s board (TSLA.O) named a special committee of three directors on Tuesday to negotiate with Elon Musk on taking the electric carmaker private, although it said it was yet to see a firm offer from the company’s chief executive.

tenor.gif
 
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JamieDimonsBalls said:
https://www.reuters.com/article/us-...essNews+(Business+News)&utm_source=reddit.com

Tesla Inc’s board (TSLA.O) named a special committee of three directors on Tuesday to negotiate with Elon Musk on taking the electric carmaker private, although it said it was yet to see a firm offer from the company’s chief executive.

tenor.gif
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This is such a clown show.

Also....how tone deaf is he to think that having Tesla owned by the Saudis is a good move? Talk about PR problems. I was scrolling through the Reddit fanboys....and a huge % of them were saying they would cancel orders/be done with the product if the Saudis are the owners.
 
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