Abhay Bisht

[Abhay Bisht @Fall21TSLACFO]

@ProfLowell Tesla ended 2020 with a positive operating cash flow at $5,943 million--a 147.11% increase from last year! This is even more surprising when considering that their operating cash flows were negative a mere 4 years ago. #FIN2209

[Abhay Bisht @Fall21TSLACFO]

@ProfLowell Tesla ended 2020 with $19,622 million in cash on hand and no short term investments, which comprises of approximately 37.6% of all their total assets. That's a large number! #FIN2209

[Abhay Bisht @Fall21TSLACFO]

@ProfLowell While Tesla's cash flows have been relatively volatile in recent years, this hasn't stopped investors from pouring their money into TSLA stocks, leading to a relatively consistent growth in capital for the company. #FIN2209

[Abhay Bisht @Fall21TSLACFO]

@ProfLowell At the end of 2020, Tesla reported that it would be raising $5 billion in capital by selling new shares to investors. Considering the market growth that Tesla faced last year, this decision doesn't come as a surprise and investors are excited! #FIN2209

[Abhay Bisht @Fall21TSLACFO]

@ProfLowell Considering that Tesla offered 13.3 million shares during their IPO, that comes out to a total of $91.637 million left on the table! #FIN2209

[Abhay Bisht @Fall21TSLACFO]

@ProfLowell When Tesla had their IPO back in June 2010, they priced each share at $17, which quickly increased throughout the day and closed at $23.89. This means they were underpriced around $6.89. That's a 40% jump! #FIN2209

[Abhay Bisht @Fall21TSLACFO]

@ProfLowell Tesla's EPS for September was reported to be $1.43. Considering they don't pay any dividends, this money is most likely being reinvested into the company to develop better products and pay off debt--which is better for its long term health! #FIN2209

[Abhay Bisht @Fall21TSLACFO]

@ProfLowell Especially considering Tesla's stock price drop from $1,229.91 on Nov. 4th to $1,023.50 on Nov. 9th, investors definitely cannot see the stock itself as a stable source of income. This makes Ford seem much more appealing as an avenue for investment! #FIN2209

[Abhay Bisht @Fall21TSLACFO]

@ProfLowell Ford recently announced they would begin paying dividends again after taking a pause during the COVID-19 crisis... they are anticipated to pay $0.10 per share, which is significant compared to Tesla's policy of not giving out dividends. #FIN2209

[Abhay Bisht @Fall21TSLACFO]

@ProfLowell Tesla's debt to equity percentage at the end of September was measured to be 23%--higher than the 21.60% cited as the US average for the automobile industry in the textbook. Looks like Tesla is taking on some serious debt to expand their manufacturing! #FIN2209

[Abhay Bisht @Fall21TSLACFO]

@ProfLowell Tesla's WACC as of May 2021 was measured to be around 13.3%--slightly higher than Ford Motor Company's ~11.3%, indicating Tesla is currently taking more risk than Ford. #FIN2209

[Abhay Bisht @Fall21TSLACFO]

@ProfLowell Tesla's beta value is currently measured at 2.01--significantly above the 1.0 value that signals normal market activity. Looks like Tesla stock is pretty volatile right now, just as we've seen for the past few months. #FIN2209

[Abhay Bisht @Fall21TSLACFO]

@ProfLowell In May of 2021, Tesla decided to step up and stop accepting Bitcoin as payment because of the environmental risks associated with it. This is an example of an unsystematic risk that is controversial and may affect stock valuation and public perception. #FIN2209

[Abhay Bisht @Fall21TSLACFO]

@ProfLowell Tesla recently agreed to sell 100k vehicles to Hertz, which boosted their shares by 13% in one day!! Exciting to hear this news that increases the actual return from Tesla stock and brings it higher than the expected return! #FIN2209

[Abhay Bisht @Fall21TSLACFO]

@ProfLowell CNN Business reported an expected EPS of approximately $1.62 for Q3 of 2021... and the actual EPS ended up being a $1.86--a 15.11% increase! Looks like Tesla is outperforming traditional estimates as usual. #FIN2209

[Abhay Bisht @Fall21TSLACFO]

@ProfLowell Looks like the increase in capital expenditure is due to the increased production in new solar roofs and Model Y vehicles, creating manufacturing plants on three different continents, and new battery technology. All exciting developments! #FIN2209

[Abhay Bisht @Fall21TSLACFO]

@ProfLowell Tesla in Q3 2020 stated that their capital expenditure would be at the higher range of their estimated $2.5 to $3.5 billion for the year. I wonder what these could be attributed to?

[Abhay Bisht @Fall21TSLACFO]

@ProfLowell When Tesla filed its 3rd quarter 10-Q for 2020, they estimated that their capital expenditure budget would be between $4.5 to $6.0 billion for this year and next year, up from their previous estimate of $2.5 to $3.5 billion. That is quite the increase! #FIN2209

[Abhay Bisht @Fall21TSLACFO]

https://t.co/Q8UnOVOOyB
Very interesting to see that Tesla explicitly states they have not and will not pay out dividends to investors--especially considering that competitors like Ford do. Will their stock price valuation be enough to drive in new investors? #FIN2209

[Abhay Bisht @Fall21TSLACFO]

@ProfLowell https://t.co/bEYGri788P
Interesting to see how analysts continue to increase price targets and reiterate that legacy carmakers are falling significantly behind Tesla... looks like TSLA is in the lead! #FIN2209