Tesla's BIGGEST BEAR Reacts To Tesla's Q4 Earnings (LOL)

TL;DR

Tesla's biggest bear, Gordon Johnson, shares his pessimistic views on Tesla's Q4 and full-year 2020 earnings.

Transcript

major tesla bear welcomed gordon johnson ceo and founder of glj research and i'll just point out uh gordon if if you weren't an analyst if you were running a hedge fund you would have been broke so long ago from tesla you would have been trying to cover your shorts so long ago and borrowing money and losing billions of dollars that you wouldn't eve... Read More

Key Insights

• 😘 Tesla's Q4 performance was criticized by Gordon Johnson for having declining gross margins and lower profitability despite increased shipments.
• 🍧 Johnson questions why Tesla's market share remains relatively small despite having a great product, failing to acknowledge the company's growth potential.
• 😮 He attributes the rise in Tesla's stock price to call options and the Federal Reserve's involvement, drawing comparisons to the GameStop saga.
• 👻 The host challenges Johnson's pessimistic views and highlights Tesla's potential for future growth and profitability.
• 🤨 The change in tone among some CNBS panel members towards Tesla's bullishness raises questions about their credibility and biases.
• 🪡 Johnson's analysis overlooks the need for production downtime and Tesla's investments in expanding production capacity.
• 🍉 Tesla's price cuts were aimed at boosting volumes, and their profitability should be seen in the context of long-term growth rather than short-term fluctuations.

Questions & Answers

Q: Why does Gordon Johnson believe Tesla's Q4 performance was poor?

Johnson points to the decline in gross margins and the decreased profit despite shipping more cars. He also mentions Tesla's price cuts to boost volumes as a factor in lower profitability.

Q: What does Johnson say about Tesla's production capacity?

Johnson argues that Tesla's production capacity is not fully utilized and suggests that they could produce more vehicles from their existing facilities. However, this overlooks the need for downtime on production lines and Tesla's investment in building new factories.

Q: How does Johnson justify his skepticism about Tesla's market share?

Johnson questions why, despite having a great product, Tesla's market share remains relatively small. However, this overlooks the growth potential for Tesla to capture a larger market share as they scale up production and sell more vehicles.

Q: How does Johnson explain the recent surge in Tesla's stock price?

Johnson attributes the rise in Tesla's stock to the impact of call options and the Federal Reserve's support of the market. He suggests that if the stock keeps rising, it could reach an unrealistic valuation of $800 billion.

Summary & Key Takeaways

• Gordon Johnson believes Tesla's Q4 performance was extremely bad, with a significant decline in gross margins and a decreased profit despite shipping more cars.

• He argues that Tesla's capacity to produce more vehicles is higher than what they currently sell, fueling doubts about the company's growth potential.

• Johnson highlights the impact of call options and the Federal Reserve's role in driving up Tesla's stock, comparing it to the recent GameStop frenzy.