Tesla reports narrower than expected losses, shares swerve

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Interesting to get an update on Musk's expected specs for Tesla Semi, but I was particularly interested in the comments about a potential battery breakthrough needed to enable those specs.

Music streaming service Spotify Tech (SPOT - Free Report) reported its initial earnings report after the closing bell, posting in-line Monthly Active Users (MAU) to 170 million, with 75 premium (subscription-based) users. "I'm expecting towards the end of this year", he said.

Around that same time, Tesla's share prices slumped in after-hours trading by as much as 5.7 percent.

That's not a bad thing, necessarily.

In all, it was a pretty standard earnings call with all of the bluster, bravado and confidence that we've come to expect from the electric carmaker and its outspoken CEO. Tesla is a real automaker now, with real demand, and real expectations.

Mr. Musk has acknowledged that Tesla erred in trying to build a highly automated production line to assemble the Model 3, noting that getting robots and other machinery to work in harmony has proved to be more hard than he expected. The company had revenue of $3.29 billion during the quarter, compared to the consensus estimate of $3.26 billion. This past month of April Inside EVs estimates that Tesla delivered just 3,875 Model 3 cars to new owners.

How soon? That's a regulatory issue, not a technological one, Musk replied. It didn't drop from the sky.

Tesla just made it clear that robots will be key to the company's future despite the problems automation has caused with the production of the Model 3. Tesla has a 12-month low of $244.59 and a 12-month high of $389.61.

I understand the optimism. Finally, Vetr downgraded Tesla from a "buy" rating to a "hold" rating and set a $331.97 price objective on the stock.in a report on Tuesday, January 9th.

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I see Tesla headed to $400, not $200. Everyone was bullish on Tesla!

Either of those should be enough to shake out some of those long TSLA stock. DnB Asset Management AS increased its stake in Tesla by 5.3% during the fourth quarter. Well, okay, but where does that leave investors? What is left when you remove that assumption?

In order to control the expenditures, Elon Musk asked his team to cut every expense that does not add value to the company. Both of these numbers indicate that Tesla has gotten a handle, somewhat, on its cash burn.

Tesla is on shaky financial ground.

Beyond 2018, though, it's not hard to imagine Tesla at least exploring a lease option for the Model 3. With a starting price of $35,000, the auto is meant to be Tesla's most affordable and top-selling vehicle. At the end of last quarter, it estimated Tesla was making about 1,000 a week, a big jump from the fourth quarter but less than half the 2,500 a week target that Tesla hoped to hit by the end of 2017. Musk later took additional questions from analysts before the call ended. A major investor wants Elon Musk to give up his slot as Chair of the Board of Directors to an independent director. Tesla now has a consensus rating of "Hold" and a consensus target price of $304.33.

Management is not happy with this proposal. We've got barnacles on barnacles. There could be a coup d'etat.

Several research analysts have commented on TSLA shares. It rose 18.8% in the last 30 days. "The truth is you're not a real company until you are".

Musk said the restructuring would involve getting rid of third-party contractors that have grown out of control.

This post first appeared on Profit Confidential.

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