The hidden message in Tesla’s earnings call

Tesla, the American electric vehicle manufacturer, reported earnings yesterday. And although losses doubled in the latest quarter, most investors were positive about the results. Tesla’s stock rose 9% in extended trading, after closing Wednesday at $300.84. As I write this, the stock is trading just above $330 a share, up over 11% from yesterday's close.

The positive reception is both because the cash burn in the quarter was lower than anticipated and because of the (always) upbeat outlook the company gave. I think this is make or break time for Tesla. So let me give the numbers highlights briefly and then get into the hidden message of the earnings call.
The numbers

Q2 Cash burn:  $739.5 million. That's down from a quarterly burn rate of about $1.1 billion. I think this is the most imp...


As this site is now reader-supported via Patreon, the remainder of this article is only available to subscribers at a specific patronage level. Articles at patronage levels BRONZE, SILVER, and GOLD are denoted by the categories in blue capital letters above the post. Posts categorized DAILY are available to both SILVER and GOLD patrons.

Click here to join. Your readership is greatly appreciated!

Registered users can log in by entering details here or below.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More