Update On A Circus Called Tesla

If Tesla is able to achieve a GAAP profit in Q3, it almost surely will be a one-time event, not repeatable….Tesla recently offered us an important clue that the capital raise will come soon……..The levers for achieving such profitability, noted Bernstein, particularly selling hoarded regulatory credits and harvesting the relatively limited demand for the high-priced, all-wheel drive Model 3s, are temporary. In other words, even if Tesla manages to eke out a tiny profit in Q3, it will be thanks to one-time tricks. So, I believe, Musk’s promise of GAAP profits in Q3 and Q4 is a bluff. A bold, audacious bluff on which Tesla’s fate likely rides…..