1/ Thread on my visit to the $TSLA store in Austin, TX today.
2/ First impression: Somewhat quiet in there. Two or three families with kids looking at the different showroom cars. There was one X P100D, S P100D and a Model 3 performance on the floor. No noticeable quality issues on any of the showroom cars.
3/ Sales guy was very friendly. Told him I was interested in the Model 3 and he took me over to the computer to look at configs. He was definitely a true Tesla believer - said best way to describe it was "fast moving, constantly changing" (older guy, had only been there 6 months)
4/
Q: "Is there any way I could still get the full $7,500 tax credit?"
A: "Yes, but only if you pay in cash today, since the car would need to be delivered tomorrow. Is that a possibility for you?"
5/ Q: "So if I pay cash, you would be able to get the car to me by tomorrow?"
A: "Yes, depending on the configuration you want. We have a variety of configurations nearby that you could choose from"
6/ So, I asked him if I could test drive. He said absolutely, and booked me a test drive for a Model 3 AWD Performance. We had to wait 5-10 minutes for the test drive associate, so we sat and talked during the wait.
7/ Interestingly enough, he began to brag about the Tesla Semi (I didn't ask). He pulled up the Semi on the website and pointed to the performance stats on it. Described them as "unbelievable."
I agreed, they are quite unbelievable.
8/ I asked him how long it would take to charge the Semi and if he thought that would be an issue for logistics. He said they would be doing battery swaps on the Semi and that it would actually be faster than filling up with diesel (thought this was interesting)
9/ I asked him about the tent, and if there were any quality issues with those cars. He said "its amazing, we just couldn't keep up with demand for the Model 3, so Elon built a tent in the parking lot and it fixed everything"
He spoke very highly of Elon.
10/ He didn't really answer my question about the quality of those cars, but implied that there were no problems. At this point, the test drive associate came and took us to the car. She was very friendly and had also only been with the company for about 6 months.
11/ We got in the car and it took us a few minutes to get set up. She mentioned that she normally doesn't do test drives and was still getting used to the instructions. She doesn't drive one herself, but said her next car would be a Tesla.
12/ The car itself was nice, but the interior felt a bit cheap to me (plastic steering wheel, no heads up display, etc.)
I did not like the touch screen. I found it distracting and hard to use, especially while driving. The heated seats were nice though.
13/ I can't lie: the car was fun to drive. When we got on the highway I could really feel the power while accelerating (pushes you back in your seat, like an airplane taking off). It was pretty cool.
14/ Tried out the autopilot. I was a little nervous while using it, but it worked well. Even had it switch lanes for me, which was cool (though a little scary).
15/ When I asked her about the service issues (parts, wait times, etc.) she admitted that the SCs were overworked because the company was so focused on production. She assured me that those issues would be fixed in the next few months.
16/ When I asked about the issues with temp. plates she said "well the temporary plates aren't the issue, its getting the actual plates. We send the registration off and for some reason the state has trouble registering the car"
Couldn't get much more detail than that.
17/ After the test drive, I asked the original sales guy if I could see the inventory they have available today. He went in the office and came back with a manager (who I hadn't seen before) and a sheet of paper, which he described as "a list of the inventory cars assigned to us"
18/ It was a list of 12 cars: 9 LR performance AWD and 3 MR RWD. 6 black, 3 silver, 2 blue and 1 red.
The location for all of them was simply "At service center" with code "US"
Except for one, LR AWD which had "Dallas" handwritten over the country code.
19/ Typed into the search bar under "status" was "at ser" which is why it only showed these 12 cars which were "at service center." I'm not sure what the other options for "status" were, or why he only wanted me to see the "at service center" cars.
20/ The manager gave me a weird vibe the whole time, as if he was suspicious of my motives for asking to look at the inventory. When I asked if I could hang on to the sheet, they immediately said no. However, I was able to sneak a partial picture of the list.
21/ I don't know if there is anything of interest here. It seemed pretty insignificant to me, but here it is:
22/ Overall, everyone was friendly and only the manager seemed suspicious of me. I didn't really learn anything new, other than the fact that there are inventory cars "assigned" to different stores. I may delete the above tweet later, for obvious reasons.
<end thread>
23/ One more interesting note: when the sales guy pulled up the website, it showed the RWD price as $34,200. I pointed it out and said "Wow, I didn't think the $35K version was available yet!"
24/ The sales guy replied "Oh, that isn't the actual price. I actually have no idea how they got to that number." He then pointed to the bottom corner of the screen, where it showed the actual price of $52,000.
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1/ As I've said before, I've spent whatever free time I could over the last week or so going back over $TSLA $TSLAQ earnings calls (back to 2012). It was quite a task. But, as promised, here is a thread on some of my favorite tidbits from those calls (in chronological order)
2/ 4Q12 Earnings call:
As we have all come to know, when Elon says "I'm highly confident that ________" whatever fills that blank has next to no chance of happening. In this case, it was an ex-ZEV credit GM >25%.
In 2013, $TSLA ex-ZEV credit GM was 14.3%
3/ 4Q12 Earnings Call:
The above holds true - this time he upped the ante. Elon was "really highly confident" that $TSLA would be profitable in Q2-Q4 2013. $TSLA posted a net loss in all 3 of those quarters, losing a total of $85.3 million.
THREAD on a peculiar contingency in the $TSLA $MXWL acquisition, which may explain the current 55% premium, but raises many more significant questions about $TSLA's motive here. 1/n
2/ In the form 425 (Filing of certain prospectuses and communications in connection with business combination transactions) filed by $MXWL yesterday, you will find this little contingency:
3/ This means that if $TSLA is trading >$245.90 when the deal closes, each $MXWL share will be exchanged for $4.75 worth of Tesla stock, valuing the deal at approximately $218mm (a 55% premium to last Friday's closing price)
1/ $TSLA $TSLAQ I think we were all confused by the gross margin "improvement" in 3Q'18, I know I am. Anyone who has read the Q's is familiar with their new revenue accounting standard:
2/ As I pointed out in my dissection of the 10Q back in October, $TSLA was able to pull forward $79,861,000 on the bottom line thanks to these adjustments, as disclosed in the 10Q:
3/ However, take a closer look at the numbers. Notice, the gross margin magically improve by 7% when the revenue moves from "Automotive Leasing" to "Automotive Sales"
"The Credit Agreement is secured by certain of our accounts receivable, inventory and
equipment. Availability under the Credit Agreement is based on the value of such assets, as reduced by certain reserves." So, $TSLA ability to borrow relies on the value of AR & inventory..
If anyone was still wondering, Elon did take cash for the 08/18 promissory notes $TSLA
"The cash flows generated by these automotive assets are used to service the monthly principal and interest payments on the Automotive Asset-backed Notes and satisfy the SPE’s expenses, and any remaining cash is distributed to one of our wholly owned subsidiaries."