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Tesla Wants To Win And Is Focused On The Long-Term – That Is Not Bizarre

Tesla Wants To Win And Is Focused On The Long-Term – That Is Not Bizarre

Michael Kramer and the clients of Mott Capital own shares of Tesla

The headlines of a bizarre Tesla earnings call seem more bizarre than the actual call. Yes, Elon was a little bit more fired up than in other conference calls, but we have also seen him be that way on Twitter recently too. I’m not going to get into debates about Tesla stock valuation, because there is no middle ground, people either hate the stock or love it. I happen to love the stock, and the company, and what they are doing. Not because they are green, but because they are making awesome cars, that have awesome technology, and are a disrupting the entire auto industry, not to mention they are also a technology company reinventing the use of battery technology. And, people want the car, and it is flourishing.

This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me. I make less than $100 a month in advertising fees. Otherwise, enjoy the column!

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Reviewing the Call

The one thing from the call that seemed crystal clear to me, he is focused on driving profitability. At around the 1-hour mark in an exchange with Phil Lebeau of CNBC, he commented on becoming profitable, and not being a real company until they are profitable. Then a few minutes later,  Ben Kallo of Baird, asked a question about getting an update on when Tesla hit 3 or 4k model 3 ‘s per week. Elon appeared to be frustrated by the amount leaks coming from out of Tesla. Additionally, he made it clear he is not interested in the short-term nature of investors, but the longer-term goals.

Right

In some regards, he is right, because in the past I have often complained that there has been too much made about whether the company missed it deliveries numbers by 500 cars, or beat by 500 vehicles. Because at the end of the day, the only thing that matters is that the longer-term trend is continuing to rise, and to this point, Tesla has been able to do just that. Revenue has continued to rise, production has continued to increase, and the number of cars on the road is continually growing. In fact, in the past two days, I have seen a Model 3 at least once each day. The Model S and X I see multiple times a day and are just as commonplace as any other luxury car.

To some extent, it comes down to the long-term focus of the direction of the company overall, and not whether they hit some number or not a week early or a week late.

If anything, from listening to that call, it was the most firey I have ever heard him, and he seems more focused than ever on driving profitable, I don’t call that bizarre, I call that competitive and wanting to win.

You can call it whatever you want, but that is how I see it.

Night

-Mike

This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me. I make less than $100 a month in advertising fees. Otherwise, enjoy the column!

© 2018 Mott Capital Management, LLC.  Use, publication or reproduction in any media prohibited without the permission of the copyright holder.

Join our 1,034 Daily Subscribers And Get This FREE Commentary In Your E-Mail! 

-or-

Follow Mike on StockTwits 

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Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future.

© 2018 Mott Capital Management, LLC.  Use, publication or reproduction in any media prohibited without the permission of the copyright holder.

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