My Takeaway from Tesla’s (NASDAQ:TSLA) Shareholer Meeting

My Takeaway from Tesla’s (NASDAQ:TSLA) Shareholer Meeting

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FLASH: The EV maker’s shares rose after CEO Musk said a “record Quarter” is possible.

The recap, as follows:

Tesla (NASDAQ:TSLA) CEO Elon Musk thinks his fledgling EV company has a ‘Decent Shot’ of having a record Quarter. Echoing prior remarks made in an employee e-Mail about Q-2 potentially being a record Quarter for Tesla’s vehicle deliveries, Mr. Musk said Tesla has “a decent shot at a record Quarter on every level.”

The comments gave a boost to Tesla’s shares, which finished after-hours trading up 3.9% to 225.47 in New York.

Tesla is challenged balancing profitability and growth. The CEO said when asked about the company’s Y 2019 financial expectations, “Profitability is always challenging if you are a fast-growing company.” He added that he thinks Tesla “could be cash-flow positive” in spite of seeing high growth rates.

In its Q-1 shareholder letter, Tesla forecast it would return to profitability in Q-3 and see positive free cash flow during the last 3 Quarters of Y 2019.

Mr. Musk demonstrated that 63% of trade-ins for the M-3 sedan involve “non-premium cars. Another 12% are said to involve mid-size premium sedans, and 25% are said to involve “other premium vehicles.”

And after predicting in April that Tesla will have 1-M robotaxis on the road in Y 2020, Mr. Musk said at the shareholder meeting there would be 1-M Tesla cars capable of acting as robotaxis out there in Y 2020, this much to the disbelief of analysts in the sector.

Mr. Musk’s track record for making good on ambitious product launch targets is mixed at best, added that Tesla expects its self-driving solution to be “feature complete” by the end of Y 2019, after which its cars will be able to drive commuter users from home to work. He also said that Tesla expects its self-driving solution to work without human supervision “probably sometime next year.” Another far out prediction.

Mr. Musk says Tesla want to reveal its pickup truck at a late-Summer event. He also said Tesla is aiming for the pickup to be “more functional” than a Ford F150 and a better sports car than a “basic” Porsche 911, it continues…

Early in the meeting Mr. Musk made a present that indicated the M-3, M-S and M-X all easily outclass rival electric cars from Mercedes-Benz, Audi and Jaguar. 3 of the most advanced carmakers in the world, in terms of power efficiency, as measured in terms of miles per kWh.

He is still predicting Tesla’s M-Y crossover, which is forecast to enter volume production “towards the end of next year,” will see demand greater than those of the M-3, S and X combined. He also said that Tesla is aiming for the M-Y to have a lower drag coefficient than the M-3 not withstanding its size.

Now, just 2 months after unveiling an updated version of its Long Range M-S that features a 370-mile range, Mr. Musk said “it won’t be long” before a Tesla with a 400-mile range arrives on the scene. He also declared that the range of Tesla’s 2012 M-S still exceeds that of all rival cars.

As Tesla continues scaling its battery operations, the company is open to directly mining some of the minerals it needs, Mr. Musk suggested. “We will do whatever we have to do to ensure that we can scale at the fastest rate possible,” he said.

Separately, Mr. Musk asserted that the 2 most important things for outside Tesla investors to track are its self-driving efforts, and its efforts to bring down battery costs by scaling production.

During Tesla’s Q-1 earnings call, Mr. Musk disclosed that Tesla plans to launch an insurance product, in order to provide a “differentiated solution”, and that he has a “small acquisition we need to complete” before launching the insurance product.

Here is the video of the complete Tesla shareholder meeting, hear it for yourself.

Source: Tesla, Inc.

HeffX-LTN’s overall technical outlook for TSLA is Bearish to Very Bearish in here. Light support is at 204.86 and the start of Strong overhead resistance/s is at 229.68.

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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