Obviously tragedy
This isn’t gonna be the bottom lol
What were you thinking??
Well I’m not an analyst at Goldman but here’s my stab at it - lost 5.4 B in ‘23. For perspective, Tesla was burning ~1B/yr during Model 3 production ramp, and people were freaking out about that burn rate - only 10 B cash on hand (less than 2 years at current burn) - only sold 57k cars in ‘23 with flat guidance for ‘24 - only plant (Normal, IL) shut down right now (claims that they will improve efficiency during shutdown, but this shutdown is only possible due to low demand) - negative gross margin per vehicle (sell more cars, lose MORE money) - legally obligated to hire 7500 full time workers in the state of Georgia by the end of the decade despite having zero operations there yet. Won’t be able to build plant there in time for R2. The $1.5 B they took from the state to stand the plant up won’t be enough. Their total workforce now is only 16k So this company looks bankrupt to me. Love their products but they’re just incinerating money. Their most recent LinkedIn posts are about their culinary team and their first ever “sustainability impact report”. They need to do mass layoffs of dead weight and start making money selling cars. Suppliers will abandon them by autumn if their cash situation doesn’t improve and their cars will get even MORE expensive to make (supplier pricing goes through the same ramp cycles as the car itself — you only get parts for cheap if your suppliers know you’ll buy that part for a long time).
My only note is that it's not unheard of for manufacturers to shut down for a few days to a few weeks to make repairs to the line, inventory, etc.
Yeah it’s not unheard of to shut down a plant for a short period. But, most automotive OEMs have multiple plants in multiple markets to keep money flowing. When you’re only homologated in the US and only have 1 plant it paints a different picture
I remember a SR Director in Normal telling me RJ is out of the stock hits single digits…let’s hope they are right. Anyone who’s worked there knows leadership isn’t up to the task.
Hell yeah, single digits baby! Leadership’s game they’ve been playing is ‘how low can you go’
Tragedy
$8.32 and where is the BoD?
Sleeping. Do not disturb.
Yea. Seriously.