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Folks,

I wanted to cross post two very important pieces of content regarding Tesla that I came across on the premium Tesla board today. This goes against public and media sentiment, which is negatively biased in a major way given the influence of incumbent auto, oil and energy.

This following interview https://boards.fool.com/watch-this-interview-34196171.aspx was indeed edited off the CNBC platform yesterday. I looked everywhere and watched all of their interview content with Chamath Palihapitiya and the Tesla part that is within this link
https://streamable.com/goa06 was indeed cut and nowhere to be found! But we Fools have located it for our intelligent consideration.

What a joke, and what clear deception and bias the media has against Tesla.

Chamath Palihapitiya is a logical, intelligent stud with an impeccable performance record. So now we have Cathie Wood, Ron Baron and Chamath Palihapitiya, all with top investing performance track records, and all yelling from the mountain tops what a great long-term investing opportunity Tesla is.

Watching this video with Chamath Palihapitiya is well worth your time.

In addition, please read this intelligent and thorough article about the same. Another intelligent summary with conviction, and very much worth your time.

I am so excited about Tesla's future that I just bought more shares for my kids accounts this morning. (I already have an 8% position that will likely grow far more in the future...:))

Rock on and Fool on.

-Rockleppard
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In addition, please read this intelligent and thorough article about the same. Another intelligent summary with conviction, and very much worth your time.

Sorry, here is the additional article I referenced in my earlier email.
http://www.hamidshojaee.com/post/184522555004/teslas-autonom...

-Rockleppard
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Rock:

TSLA has been dead money for the past 5 years.

The story has been broken for years.
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TSLA has been dead money for the past 5 years.

The story has been broken for years.


Hmmm.....Are you saying that Tesla's recent years' stock price performance means therefore that a continuing and/or new Tesla investment will be dead money for the next five years?

Any comments about the compelling and intelligent content I referenced from CNBC's interview with Chamath Palihapitiya, or the investment conviction of Ron Baron and Cathie Wood, of the competitive advantage referenced in the article I posted...? http://www.hamidshojaee.com/post/184522555004/teslas-autonom...

-Rockleppard
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Hmmm.....Are you saying that Tesla's recent years' stock price performance means therefore that a continuing and/or new Tesla investment will be dead money for the next five years?

There is much more to it than just its stock price Rock but all combined, that is correct.....unless you can find greater fools than thee.
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Rock,

Duma is right.
If you bought TSLA in October 2014 and you have kept it until now, you lost money.
This is a crowded market and it´s not sure at all that TSLA will be a winner.
Maybe you should think about choosing a better investment (like MSFT or AMZN).

Clubb
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Rock,
I saw that interview.

None of us know where any stock price will be in the next 5 years. No one.

You feel good about an investment in Tesla going forward then by all means make the investment.

Yes the past 5 years have been dead money in Tesla. Has no indication that the next 5 years will have the same results.

As for a bit of TA, Tesla retested it’s recent low of 231.50 this morning and bounced. I’d watch that number as it may be building a base right here over the next few weeks.

Best of luck with your investments.
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I wouldn't put a penny in any stock where Elon Musk has a say.

I said along time ago that SolarCity would go bankrupt. Dear Old Elon rescued his realtives with Tesla shareholder money. There are plenty of honest businesses to invest in.

BTW, would Tesla's CEO say that Tesla is a piece of crap? He is talking his book. No, I didn't watch the thing.

Denny Schlesinger
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Regarding the interview with Chamath Palihapitiya... I heard it live on CNBC (again today via your link) and it didn't leave me wanting to buy Tesla shares.

Chamath sees Elon for the visionary that he is, wants to keep a piece of that for the future, but doesn't exactly recommend the stock. In fact, I got the impression that he did not recommend the stock rather he was happily invested in the convertible bonds knowing that if the company goes bankrupt the bond holders get paid out first (before ordinary shareholders).

Chamath would like to see the world let Elon just do his thing, use his intelligence to make the world a better place. That doesn't necessary mean that individual shareholders will be the better, but it could.

Personally, after hearing the interview I wanted to know more about Tesla's bonds.
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I concur with Denny S. in many ways.

The key thing with Tesla right now is their cash position. As of 3/31/2019, they were down to $2.2B of unrestricted cash. Their Q1 2019 free cash flow was -$920M with deliveries of 63,000 vehicles for the quarter. That number included something like $150+ million of regulatory credits which were not known about at the time of the quarterly release and conference call last Wednesday 4/24, but were only revealed via the release of the 10Q.

The April deliveries estimate today from InsideEVs included 10,050 Model 3's delivered in the U.S.

Can overseas deliveries here within Q2 or an uptick in U.S. sales in Q2 and Q3 save the day for Tesla? If not, and with no capital raise, they'll need to start slowing the factory down substantially to keep the lights on until September.

It is a simple matter of math and cash.

Does anyone actually believe what Elon said a few weeks back that a Tesla vehicle is an appreciating asset? If you do, why don't you go buy up a fleet of them to use as a cash generating robo-taxi business in the future?

-TQP
Obvious Disclosure: Short TSLA
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In fact, I got the impression that he did not recommend the stock rather he was happily invested in the convertible bonds knowing that if the company goes bankrupt the bond holders get paid out first (before ordinary shareholders).

One of the biggest things I have noted in following the Tesla saga extremely closely over the past roughly 10 months an apparent large knowledge gap with Tesla fans/shareholders not recognizing the importance of a capital structure and the hierarchy within a capital structure. Equity is subordinate to debt. Common stock is subordinate to preferred stock (when such exists), etc.

Even with Chamath showing much more knowledge/recognition of this with the above, he should still caution against the fact that the convertible bond holders are subordinate to the senior bonds and some of the other creditors.

One aspect that helped Tesla immensely in March was an increase in the cap for their ABL (asset backed loan) of about $500M. They likely drew over $400M of that within Q1, without which their cash balance would have been about $400M worse. If I am not mistaken the ABL entities are above the convertible bond holders in the capital structure of Tesla.

Over coming weeks, I won't be surprised to see some nice graphics on Twitter spelling out specifically what the order of preference is within Tesla's capital structure. In fact, I might suggest that via a Tweet in the next few days or less.

-TQP
Disclosure: should go without saying based on my name
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Does anyone actually believe what Elon said a few weeks back that a Tesla vehicle is an appreciating asset? If you do, why don't you go buy up a fleet of them to use as a cash generating robo-taxi business in the future?

Quite possibly true if Tesla goes bust.
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No. of Recommendations: 5
With a financially strapped company Musk spent precious corporate capital to bail out a company on the verge of going bankrupt, lying through his teeth that all the company needed was to consolidate with Tesla and then they could coordinate sales and all would be well.

If you want to own stock in a company who cares so little about the value of the corporation to shareholders and uses the company as his own personal toy, then go ahead, by all means!

I still cannot believe that Tesla enthusiasts defended and actually bragged about the brilliance of the move.

Yes, the Board of Directors approved the transaction. Demonstrating that the BoD is not independent at Tesla. Is it now?

Tinker
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I saw an interview where he said that running a car company is hard. Kind of sums it up for me. He's a visionary inventor/tech guy, not a car guy. It's going to be a bumpy road for him.
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