Tesla To Become Sustainably Profitable, Analyst Says: Video

OCT 3 2018 BY MARK KANE 14

Not only achieve a profit, but become sustainably profitable.

As Tesla showed numbers for the third quarter of 2018 with some 83,500 cars delivered, the company now seems rather promising.

The current result should be able to achieve break even (small net profit or negligible net loss), while an increase of sales above 100,000 cars a quarter (probably what we’ll see in Q4) should translate to profits.

Romit Shah, an analyst at Instinet, said on the Bloomberg Markets and Finance program, that Tesla can not only achieve profit, but become sustainably profitable.

Romit Shah, analyst at Instinet, discusses Tesla Inc.’s surge in electric-car deliveries that could prove pivotal to earning an elusive profit, overcoming a series of distracting missteps by Chief Executive Officer Elon Musk. Shah speaks on “Bloomberg Daybreak: Americas.”
Check out the video discussion above for more details.

Source: Bloomberg

Categories: Sales, Tesla

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14 Comments on "Tesla To Become Sustainably Profitable, Analyst Says: Video"

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Another Euro point of view

But…I though the analysts were clueless. Do we need to take note that as from now it is not the case any more ?

An obedient but confused EV enthusiast

Pushmi-Pullyu

No. If he wasn’t so clueless, he would have figured that out at least two years ago, just like this analyst did:

https://www.fool.com/investing/general/2016/03/27/how-tesla-motors-could-be-profitable-if-it-wanted.aspx

David Murray

When will we hear from Tesla about profitability? I thought they would have had to disclose that already since the quarter is over.

Some Guy

Nobody releases numbers on profitability the day after a quarter closes. All companies that are required to do so usually do around mid November. Tesla will do as well, similar to the last years.

AJ

Tesla reports financials in the First week for November

M Hovis

Q4 will definitely increase but 20,000 more Model 3s might be ambitious. That’s an average of 1,500 per week. They will definitely get there. With the three new Grohmann machines added to zones 1,2, and 3, they will have added the battery capacity for 8,000 per week. These are on schedule to be operational during Q4, so the battery capacity will be there. Based on that solved bottleneck, I think they will make it to 8,000 per week pretty fast, maybe as early as Q1. Manufacturing is hard and IMO, they are doing an awesome job. Q4 is going to see new records. I hate to see huge strides spoiled because it missed some analyst prediction. So, patiently waiting for Q4 guidance from Tesla.

Pushmi-Pullyu

“Romit Shah, an analyst at Instinet, said on the Bloomberg Markets and Finance program, that Tesla can not only achieve profit, but become sustainably profitable.”

He just now figured this out? I hope they’re not actually paying this Nimrod a salary…

TM3x2 Chris

To be fair, very few analysts take a long term view. They based their analysis on the past history and look forward to the next quarter or two. Tesla’s financial issues and Elon’s antics were not helping to create a rosy outlook of the future.

Now, with the TM3 success we will see more and more analysts agreeing that Tesla will be profitable in the short term.

REXisKing

Asymmetric intelligence. Some people can look into the future and project what may occur and the likeliness. We can only assume most analysts give Seeking Alpha far more credit that it deserves ( 0 credit ), for it’s “analysis”. If they’re not in on the joke that Seeking Alpha is a short propaganda site, they might give them too much credit.

ffbj

Yeah, like the Mentats v the Bene Gesserit.

Pushmi-Pullyu

“To be fair, very few analysts take a long term view. They based their analysis on the past history and look forward to the next quarter or two.”

And that’s one of the biggest problems with Wall Street, possibly the biggest problem: That they are so focused on short-term thinking that they completely ignore the long-term view. That’s what has lead to so much corporate raiding, focus on short-term profits at the expense of the long-term health of a company, as well as obscenely bloated executive salaries, huge bonuses even when driving the company to ruin, insanely expensive perks, and “golden parachutes”.

TM3x2 Chris

That’s capitalism for you, take your profit now and consider the consequences later. Better yet, let others deal with the consequences of your actions.

I merely made an observation that most analysts view profit and loss from a short-term angle. That’s simply the necessity of assessing the modern economy. While you correctly identify the issues this creates, do you have an alternative solution? Your comments imply that the long-term thinking is more stable and sustainable. I don’t agree. Long-term planning rarely works in the intended way because of the rate of change and the unexpected impact it creates. New, disruptive technologies negate all plans that rely on assumptions made too far in the past. Just consider what 19th century’s ideas of shared resources and planned economy gave us – some parts of the world are still recovering from trying to implement this type of long-term thinking. This, of course, is an extreme example. I cite it to make a point that simple solutions to complex problems do not exist.

The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries. – Churchill

Will

Was is that $4k stock

Windbourne

I love how these analysts flip from one side to the other.
If you look at tipranks, you will see that the bottom feeders are working to manipulate tesla.