Im guessing they recognized 150-200k cars worth of FSD deposits, assuming they are 4k apiece.

The cut in cogs is hugely good though, is it not?

If they included the deferred revs in their gross margin then its not impressive at all, because its entirely from that one item

How would smart summon reduce cogs?

It wouldn't, guess I missed your post about cogs. I don't think they can recognize deferred revs without it being straight through revs so I'm drawing a blank there too. Just gonna have to wait and see the numbers

Theres definitely some other stuff going on but cogs being down that much is a huge positive for them.

Implied move/straddle was about 11% (previous 8 quarters avg move 8%+) so approaching double that, weekly $290 calls closed at $.79. A lot of the big money shorts hedge via the options/debt but still interesting to see it smash the expected move with short interest well off highs already.

Surprising earnings.

https://youtu.be/tR2AXVkIIgU

it's amazing, but how?


Definitely in utter shock at these financials, things dont move this drastically, company is still a ~zero but these are far outside what I would possibly have expected.

Deliver more cars and COGS goes down? I know product mix was worse, but then how did margin improve? Skimming the balance sheet there isnt anything that changed a ton which only leaves an understating of liabilities as a place to hide something (not implying fraud just saying nothing weird like the huge AR pop in Q3 2018)

I cant figure it out.

Short burn of the century for sure.

Well, I got one number right. 30M of FSD revenue recognized.

Ol Enron Musk back at it again

Looks like 240mm in reduced sales expense, 80mm in reduced service center expenses, 50mm from G&A, 85mm of "other income", and no "Restructuring and Other" expenses (117mm difference).

Thats about 540mm of the 550mm difference QoQ

240mm represents about 16,000 employees making 60k a year not getting paid a dime

There is nothing that really jumps out at you, but you wouldn't expect to see these kinds of operation efficiencies QoQ

240 million in sales wages in one quarter???? That dont sound right

Elon has owned Tslaq tho.

Every quarter Teslaq is on about "the fraud has escalated even further!". At some point you're just wrong.

If I had a dollar for every time one of them said "it's all downhill from here!"

This explanation for the cogs makes some sense:

"The ONLY way $TSLA "Cost of Automotive Sales" went down by well over $2000/car was by extending the tooling depreciation schedule and slashing the warranty reserve."

HAHAHAHAHAHAHAAHHHAHAAHHAHAHHAQAHAHHAHAHAHAHAHAH

TESLAQ

EAT ****

On one hand I'm glad I was short covered puts going into earnings.
On the other hand, this sucks.

I guess Elon needs to cap raise and is hoping to do it off a short burn before the 10-Q comes out.

No. That's not what's happening. He doesn't need to raise capital. Shorts are starting to be more irrational than the bulls with their theories.

It's a company that burns money but has unlimited access to money donors and is willing to play some accounting games to turn a profit now and then. Any theories outside of that are BS. And if they aren't BS it doesnt matter because no one cares.

Thread on cogs improvement:
https://mobile.twitter.com/orthereab...57593251041281

i've seen this movie before lol

I am very surprised TSLA was profitable. I think it's more like breakeven after you subtract the non-recurring items and borderline scam recognition of deferred FSD revenues (which is why they recognized it probably).

The drop in COGS per vehicle is significant no matter how you look at it. Without the 10Q, you can't know the extent accounting gimmicks contributed to the drop in COGS but such a dramatic drop raises eyebrows and almost certainly are backed by real cost cuts.

TSLA generated $371 in FCF and Chinese banks are committed to financing the Shanghai factory. TSLA at this point doesn't need to raise capital except to refinance debt or to finance (so far) unannounced major expansions.

I wonder if there's going to be a bit of NFLX effect here. buyers rush in on an earnings beat but then people remember this is priced as a growth stock and the growth story wasn't strengthened

I need this thing to stay below 305 for a couple weeks. Ideally it would get to 280 in a hurry