Elazar was launched in 2004 by Chaim Siegel and has served famous hedge fund clientele who demand a keen understanding of drivers of individual companies and financial markets. Chaim twice worked for renowned trader Steve Cohen of then-SAC Capital (now Point72). He was also a partner at JLF Asset Management which was funded by George Soros. Previously he was one of seven analysts on a $13B mutual fund at Morgan Stanley Asset Management. Elazar Advisors publishes its research into the Reuters/Refinitiv Institutional Platform and Factset where Elazar's earnings estimates are factored into the Street earnings numbers.  Elazar's research is used regularly by fundamental and algorithmic traders and investors at some of the largest mutual fund and hedge fund managers in the world. Chaim has been a 5-Star top ranked analyst in Tesla and other big cap tech companies. Try us with a  free trial here . All investments have many risks and can lose principal in the short and l

Tesla: Musk Statements, Bold or Uh Oh

Elon Musk had some bold comments recently. He tweeted, "Tesla will be profitable & cash flow+ in Q3 & Q4, so obv no need to raise money." If true it's huge for the stock.

The question is of course is that the hope or the reality.

You can see in our model (click TSLA and scroll around) that we have negative cash flow and negative cash meaning either Tesla (NASDAQ:TSLA) raises cash or that's all folks.

Musk's comments have to be considered because they imply that Tesla would ramp Model 3 production huge and blow away our numbers, while at the same time run super-efficient to shrink the negative Model 3 gross margins and see margins jump way past our expectations.

It could be, but Musk how do you fit that with something else he tweeted that same day. Musk recently just shifted gears that old-fashioned human production could actually be better than too many robots. He said in another tweet, "Yes, excessive automation at Tesla was a mistake."

So you have in one short day of tweets that Musk thinks Tesla's going to blow away second half numbers but that he's going to have to do it with less automation. When he says "excessive automation" it tells me production efficiency is about to suffer. So which is it? Blow away numbers or less efficiency?

Frankly I'm confused and still on the sidelines.  If you figured that one out please let me know. I'm still thinking about it.

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Reading comprehension quiz.
Elon Musk
A) Promises that he will blow away second half numbers.
B) Thinks he's going to blow away second half numbers.
C) Had his Twitter account hijacked by some Russian spy saying he's going to blow away second half numbers.
D) Tweeted he's 100% sure automation is still the best way to go.

Please answer in comments.

All investments have many risks and can lose principal in the short and long term. The information provided is for information purposes only and can be wrong. By reading this you agree, understand and accept that you take upon yourself all responsibility for all of your investment decisions and to do your own work and hold Elazar Advisors, LLC, and their related parties harmless. Model portfolio trades and positions are hypothetical to be used for directional analysis and ratings purposes. Elazar and its employees do not take individual stock positions to avoid front running and other potential customer related issues.

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