{"id":94818,"date":"2020-10-22T04:24:00","date_gmt":"2020-10-22T01:24:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/opinion-tesla-plays-smoke-and-mirrors-with-profits-again\/"},"modified":"2020-10-22T04:24:00","modified_gmt":"2020-10-22T01:24:00","slug":"opinion-tesla-plays-smoke-and-mirrors-with-profits-again","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/opinion-tesla-plays-smoke-and-mirrors-with-profits-again\/","title":{"rendered":"#\n  Opinion: Tesla plays smoke and mirrors with profits again"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a348b6b088dd\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a348b6b088dd\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/opinion-tesla-plays-smoke-and-mirrors-with-profits-again\/#Tesla_posts_fifth_straight_quarterly_profit_but_it_was_thanks_to_regulatory_credit_sales\" >Tesla posts fifth straight quarterly profit, but it was thanks to regulatory credit sales<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/opinion-tesla-plays-smoke-and-mirrors-with-profits-again\/#Tesla_was_buoyed_by_397_million_in_regulatory_credits_in_the_third_quarter\" >Tesla was buoyed by $397 million in regulatory credits in the third quarter.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/opinion-tesla-plays-smoke-and-mirrors-with-profits-again\/#Therese_Poletti\" >Therese Poletti<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Opinion: Tesla plays smoke and mirrors with profits again<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Tesla_posts_fifth_straight_quarterly_profit_but_it_was_thanks_to_regulatory_credit_sales\"><\/span>\n  Tesla posts fifth straight quarterly profit, but it was thanks to regulatory credit sales<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000041997\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"inline\n              \" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetMediaIllustration\n          inline\n  article__inset\n        article__inset--type-InsetMediaIllustration\n          article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        renoImageFormat-\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:66.640625%;\" data-mobile-ratio=\"66.640625%\" data-layout-ratio=\"66.640625%\" data-subtype=\"\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-245136?width=140&amp;size=1.5005861664712778 140w,\nhttps:\/\/images.mktw.net\/im-245136?width=540&amp;size=1.5005861664712778 540w,\nhttps:\/\/images.mktw.net\/im-245136?width=620&amp;size=1.5005861664712778 620w,\nhttps:\/\/images.mktw.net\/im-245136?width=700&amp;size=1.5005861664712778 700w,\nhttps:\/\/images.mktw.net\/im-245136?width=860&amp;size=1.5005861664712778 860w,\nhttps:\/\/images.mktw.net\/im-245136?width=1260&amp;size=1.5005861664712778 1260w\" sizes=\"(max-width: 140px) 100px,\n(max-width: 540px) 500px,\n(max-width: 620px) 580px,\n(max-width: 700px) 660px,\n(max-width: 860px) 820px,\n1260px\" src=\"https:\/\/images.mktw.net\/im-245136?width=620&amp;size=1.5005861664712778\" data-enlarge=\"https:\/\/images.mktw.net\/im-245136?width=1260&amp;size=1.5005861664712778\" alt=\"\" title=\" Tesla was buoyed by $397 million in regulatory credits in the third quarter.\"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\">\n<h4 class=\"wsj-article-caption-content\"><span class=\"ez-toc-section\" id=\"Tesla_was_buoyed_by_397_million_in_regulatory_credits_in_the_third_quarter\"><\/span> Tesla was buoyed by $397 million in regulatory credits in the third quarter.<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>      <span class=\"wsj-article-credit article__inset__image__caption__credit\" itemprop=\"creator\"><br \/>\n            Getty Images<br \/>\n          <\/span><br \/>\n  <\/figcaption><\/figure>\n<\/div>\n<p>       Tesla Inc. Chief Executive Elon Musk called the electric-car maker\u2019s third quarter its best ever, but it still isn\u2019t selling its cars for a profit, while dropping its prices.<\/p>\n<p> Tesla reported its fifth consecutive quarter of profits, but it was also the fourth consecutive quarter that Tesla would not have been profitable without regulatory credit sales. Tesla was buoyed by $397 million in regulatory credits in the third quarter, which helped paper over the effects of a large stock bonus for Musk and produce $331 million in profit. <\/p>\n<div class=\"paywall\">\n       \u201cOnce again, auto regulatory credit revenue was another major driver of the beat,\u201d wrote Garrett Nelson, an analyst with CFRA, in a brief note to clients.  <\/p>\n<p>Tesla<br \/>\n        TSLA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/203558040\/composite\" class=\"positive\">+0.16%<\/bg-quote><br \/>\n       sells regulatory credits to other auto makers who fail to manufacture enough \u201cgreen\u201d cars to meet federal standards, and they have been selling a lot of them this year. Tesla has collected $1.18 billion in credit sales \u2014 with their 100% profit margins \u2014 through the past nine months, more than double what it booked in all of 2019.<\/p>\n<p>It is not clear how long Tesla will be such a hot ticket for those credits, however \u2014 development of rival electric cars could soon mean fewer customers as large auto makers and startups start collecting their own credits. <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.sec.gov\/ix?doc=\/Archives\/edgar\/data\/1318605\/000156459020033670\/tsla-10q_20200630.htm\" class=\"icon none\">In its most recent 10Q filing,<\/a> Tesla disclosed that it has earned and will continue to earn various tradable automotive regulatory credits. \u201cWe have sold these credits, and will continue to sell future credits, to automotive companies and other regulated entities who can use the credits to comply with emission standards and other regulatory requirements,\u201d Tesla said.\u00a0 <\/p>\n<p>In its conference call last quarter, Tesla Chief Financial Officer Zachary Kirkhorn told analysts that the company\u2019s regulatory credit revenue in 2020 would \u201croughly double\u201d that of 2019. Already in the first nine months of this year, Tesla\u2019s regulatory credits have totaled $1.179 billion, compared with  $594 million for the full year of 2019. Tesla has already hit Kirkhorn\u2019s guidance on credit revenue,  adding another element of  possible uncertainty for the fourth quarter.<\/p>\n<p>Musk could sell more cars at higher prices to generate more cash, but he seems determined not to. After dropping the price of the luxury Model S twice, last to a juvenile price of $69,420, Musk again on Wednesday discussed bringing prices down overall.<\/p>\n<p>\u201cIf the car is too expensive, than people won\u2019t have enough money in their bank account, they can\u2019t buy it no matter what the value proposition,\u201d Musk said. \u201cIt is important to lower prices so people can literally just have enough money to buy it.\u201d<\/p>\n<p>Tesla shares have soared a stunning 404% this year, for a valuation <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roaching $400 billion, as its shares rose in after-hours trading Wednesday. To produce anywhere near enough profit to deserve that valuation, Tesla must stop relying on regulatory credits to produce profit, and cutting prices isn\u2019t going to help.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Therese Poletti\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Therese_Poletti\"><\/span>Therese Poletti<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener noreferrer\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21004575-02D4-D4B5-4572-DA40D07C344E%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Opinion: Tesla plays smoke and mirrors with profits again &#8221; Tesla posts fifth straight quarterly profit, but it was thanks to regulatory credit sales Tesla was buoyed by $397 million in regulatory credits in the third quarter. Getty Images Tesla Inc. Chief Executive Elon Musk called the electric-car maker\u2019s third quarter its best ever,&#8230;<\/p>\n","protected":false},"author":1,"featured_media":94819,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-94818","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/94818","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=94818"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/94818\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/94819"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=94818"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=94818"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=94818"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}