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As I'm sure the HODLERS have noticed, TSLA's stonk is down today following earnings. What the fvck is up with that?! They beat analyst earnings estimates!
Well, Space/Climate Jesus pulled a fast one by selling 10% of TSLA's bitcoin holdings for a realized gain of $100 MM which largely makes up the "beat." Also, as is custom, the only reason the company has positive earnings in the first place is selling zero emission vehicle (ZEV) credits to other auto manufacturers that need them. TSLA has stated openly that as competitors ramp up ZEV manufacturing and sales, they won't need to buy these credits anymore so this isn't a sustainable source of cash flow.
Yeah yeah whatever, this is what usually happens so what's the big deal? Well, peep the lines in the table above titled "Free Cash Flow" and "Cash and Cash Equivalents" (lol @ N/A for undefined percentage changes in the far right column). We don't have the 10-Q yet which will break down the change in net working capital but that (usually positive) change fell off a cliff. Also, they didn't ramp capex significantly ($1.3 B vs. $1.15 B last Q) so that is a pretty big miss. Opex was a good bit more than analysts estimated, with EBIT coming in at $594 MM vs. expected $844 MM.
IN SUMMARY - meh, not much to talk about here as it is the same old, same old. Now that the Q is over, investors can turn their attention back to gamma squeezes caused by yugely OTM call option buying to drive the stonk up!
Well, Space/Climate Jesus pulled a fast one by selling 10% of TSLA's bitcoin holdings for a realized gain of $100 MM which largely makes up the "beat." Also, as is custom, the only reason the company has positive earnings in the first place is selling zero emission vehicle (ZEV) credits to other auto manufacturers that need them. TSLA has stated openly that as competitors ramp up ZEV manufacturing and sales, they won't need to buy these credits anymore so this isn't a sustainable source of cash flow.
Yeah yeah whatever, this is what usually happens so what's the big deal? Well, peep the lines in the table above titled "Free Cash Flow" and "Cash and Cash Equivalents" (lol @ N/A for undefined percentage changes in the far right column). We don't have the 10-Q yet which will break down the change in net working capital but that (usually positive) change fell off a cliff. Also, they didn't ramp capex significantly ($1.3 B vs. $1.15 B last Q) so that is a pretty big miss. Opex was a good bit more than analysts estimated, with EBIT coming in at $594 MM vs. expected $844 MM.
IN SUMMARY - meh, not much to talk about here as it is the same old, same old. Now that the Q is over, investors can turn their attention back to gamma squeezes caused by yugely OTM call option buying to drive the stonk up!
