
Tesla's Source of Cash Has Finally Been Revealed - PretzelFisch
https://finance.yahoo.com/news/teslas-secret-source-cash-finally-164120826.html
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brianwawok
So every Tesla you buy (that helps the environment), offsets a giant 12 MPG
truck driven to get grocery's (and hurting the environment)? I wonder how the
environmental buyers of Tesla would feel about that...

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toomuchtodo
Model S owner here. I’m OK with it. Those are going to end up as stranded
assets anyway (remember when people set their SUVs on fire when gas was
>$4/gallon?). It also helps keep Tesla in business.

Maybe the blame should be on poor public policy? You wouldn’t sit in the
garage with a running internal combustion vehicle, so why do we continue to
allow them to be sold?

Disclaimer: I’m currently short the US auto industry (except Tesla) as well as
the US economy as a whole.

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bdcravens
> I’m currently short the US auto industry (except Tesla)

Do you anticipate a future where Tesla succeeds but the economy doesn't? Right
now Tesla's solvency is a product of SpaceX's success, and government
subsidies (credits for buyers - remember how Tesla markets their prices - and
credits they can sell). The _average_ new car price is about $35,000, which
means for every BMW someone's buying a low-end Corolla, and I don't see them
succeeding long-term on sales if they can't start building $20,000 cars.

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toomuchtodo
I expect Musk to have SpaceX acquire Tesla with StarLink revenue if Tesla
nears insolvency. SpaceX being private makes this easier than him taking Tesla
private directly (420 funding secured aside). Kinda looking forward to a “Musk
Industries” conglomerate.

Legacy automakers lack creative financing without government bailout
intervention.

Edit: I can only imagine what is capable with the combined manufacturing and
R&D capabilities of Tesla and SpaceX.

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reitzensteinm
What kind of time frame are you putting on this? Starlink needs to ramp up,
and if Tesla is going to die, it's going to be sooner rather than later.

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toomuchtodo
Tesla is collecting at least $2 billion in zero emissions credits from GM and
Fiat Chrysler over the next two years. China is willing to lend cheap money to
them to fund Gigafactory 3. I’m not worried.

I expect StarLink serving North American users in 12-18 months, with all sats
flown on flight proven boosters already paid off by paying launch customers.

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reitzensteinm
OK, thank you.

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umeshunni
The entire article seems to be theory with a clickbait headline.

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bdcravens
According to the article, the purchasing of credits isn't a theory. There seem
to be plenty of factual statements.

"General Motors Co. and Fiat Chrysler Automobiles NV disclosed to the state of
Delaware earlier this year that they reached agreements to buy federal
greenhouse gas credits from Tesla. While the filings are light on detail, they
haven’t been reported on previously. They also represent the first
acknowledgments from carmakers that they’re turning to Tesla for help to
comply with intensifying U.S. environmental regulations."

"GM’s agreement to buy greenhouse gas credits was dated Feb. 25 and reported
to Delaware the following day. Pat Morrissey, a GM spokesman, said the company
is buying the credits as insurance against “future regulatory uncertainties.”"

"Tesla has generated almost $2 billion in revenue from selling regulatory
credits since 2010. "

"During a call with prospective investors in Tesla’s offerings of new equity
and convertible bonds earlier this month, Chief Financial Officer Zachary
Kirkhorn said credit sales will be a more meaningful part of Tesla’s business
in the coming years."

