Whitney Tilson: Tesla Is Cranking Out Model 3s

Whitney Tilson’s email to investors discussing WSJ’s article titled, “Tesla Is Cranking Out Model 3s – Now It Has to Service Them”

Tesla Model Y Crossover Production

Blomst / Pixabay

From the front page of the investing section of today’s WSJ:

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Q4 hedge fund letters, conference, scoops etc

Tesla Is Cranking Out Model 3s - Now It Has to Service Them

 

Gus Schmidt was so excited when he received his Tesla Model 3 sedan in August that he tweeted a photo of himself and his wife grinning next to the electric car. Six weeks later, the thrill was gone.

 

...

Tesla has cranked up its Model 3 production in recent months, enabling buyers like Mr. Schmidt to get their vehicles after long waits. But as Tesla’s U.S. sales approach those of luxury auto makers like BMW AG and Daimler AG’s Mercedes-Benz, it has encountered new logistical problems, from delivery and servicing of a growing fleet to balancing supply and demand.

 

Read the full article here by Tim Higgins, The Wall Street Journal

A friend's comments:

The WSJ journalist might have pointed out that this is what happens when you cut your capex in half, in order to keep your near-term liquidity afloat.

Meanwhile, from the world's leading BEV market by far (% of total car sales), Norway, the first 10 days of February sales numbers:

2019-02 Norway Feb 1-10
1 VW eGolf 203
2 Nissan LEAF 155
3 Hyundai Ioniq EV 111
4 Hyundai Kona EV 88
5 Audi eTron 88
6 Jaguar i-Pace 82
7 BMW i3 80
8 Kia Soul EV 57
9 Renault Zoe 30
10 Kia Niro EV 29
11 VW eUp 27
12 Tesla Model X 24



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Jacob Wolinsky
Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Prior to ValueWalk, Jacob was VP of Business Development at SumZero. Prior to SumZero, Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver