Founder & CEO Bond Angle, LLC, Bond Angle, LLC

Vicki Bryan

Vicki Bryan founded Bond Angle in 2018, after more than 20 years in investment management and research, with a primary focus in high yield and distressed markets and selected coverage in investment-grade fixed income and equity. 

Vicki Bryan's Bond Angle provides insightful commentary and analysis on high yield bond markets and market movers, including financial, economic, and industry catalysts, noted for spotting management stumbles and shenanigans early and often. Follow Vicki at bondangle.substack.com and on Twitter @VickiBryanBondA and LinkedIn.

Founder & CEO Bond Angle, LLC

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Bond Angle, LLC

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<a href="https://www.smartkarma.com/entities/tesla-motors-inc" target="_blank" data-smartkarma-citation="entities:20279:1" rel="noopener">Tesla Motors (TSLA US</a> stock dropped in after-hours trading when it missed market expectations for the fourth quarter with just $270 million in net income (up 157%) on slightly better revenue of $10.7 billion, up 46% versus $7.4 billion last year.
For those playing at home, that’s not just a paltry margin at 2.5%, it’s a much smaller profit versus the $331 million reported in the third quarter on $8.7 billion in revenue—$2 billion less.
And as I expected, all of reported net income came from energy credit sales which masked a loss of at least $131 million, as has happened with each and every profit Tesla has reported since Q319 (as I discussed again on Monday in <a href="https://bondangle.substack.com/p/tesla-the-skys-the-limituntil" target="_blank" rel="noopener">Tesla: The Sky's The Limit...Until</a>). I expect to see additional boosts to revenue and profits Tesla typically adds like accounting maneuvers such as conveniently timed reserves adjustments and other unusual and nonoperating contributions when the 10-K is filed.
It seems even more consequential this quarter, with its market cap at more than $800 billion following another $5 billion sale of stock and the addition of its stock to the <a href="https://www.smartkarma.com/entities/s-p-500" target="_blank" data-smartkarma-citation="entities:22886:1" rel="noopener">S&amp;P 500 (SPX INDEX)</a>, that Tesla’s core operations still can’t generate unvarnished profit even on $10.7 billion in revenue.

Tesla Motors (TSLA US stock dropped in after-hours trading when it missed market expectations for the fourth quarter with just $270 million in net income (up 157%) on slightly better revenue of $10.7 billion, up 46% versus $7.4 billion last year.
For those playing at home, that’s not just a paltry margin at 2.5%, it’s a much smaller profit versus the $331 million reported in the third quarter on $8.7 billion in revenue—$2 billion less.
And as I expected, all of reported net income came from energy credit sales which masked a loss of at least $131 million, as has happened with each and every profit Tesla has reported since Q319 (as I discussed again on Monday in Tesla: The Sky's The Limit...Until). I expect to see additional boosts to revenue and profits Tesla typically adds like accounting maneuvers such as conveniently timed reserves adjustments and other unusual and nonoperating contributions when the 10-K is filed.
It seems even more consequential this quarter, with its market cap at more than $800 billion following another $5 billion sale of stock and the addition of its stock to the S&amp;P 500 (SPX INDEX), that Tesla’s core operations still can’t generate unvarnished profit even on $10.7 billion in revenue.

Tesla

Tesla: Oh No You Didn’t