$TSLA Growth Slows as Debt & Obligations Climb

Energy storage is no longer a growth business for Tesla and the next step is margin pressure.

This was all completely foreseeable.

1. Tesla had the capacity to take advantage of Biden-era battery subsidies more than any other company.

2. Subsidies bring competitors, but supply takes time to come online.

3. Eventually, added supply puts pressure on pricing, eating margins for everyone.

We're between #2 and #3 today. Over the next 2 years, margins will compress further, as energy products always do.

Tale as old as time.

Related: Tesla is sitting on its highest level of debt and future obligations, including net payables of $11.7 billion, $3.4 billion in unearned revenue (FSD pre-payments), and $31.6 billion in other expenses (warranties, etc).

It takes a lot of cash to be an automaker and the cash spigot turns off when growth stops...

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Tesla had the capacity to take advantage of Biden-era battery subsidies more than any other company.\n2. Subsidies bring competitors, but supply takes time to come online.\n3. Eventually, added supply puts pressure on pricing, eating margins for everyone.\nWe're between #2 and #3 today. Over the next 2 years, margins will compress further, as energy products always do.\nTale as old as time.\n<img alt=\" \" title=\" \" src=\"https://community-static.tradeup.com/news/c559c29d09a32da83f3f4ca37596aa34\" tg-width=\"2400\" tg-height=\"1350\"> \nRelated: Tesla is sitting on its highest level of debt and future obligations, including net payables of $11.7 billion, $3.4 billion in unearned revenue (FSD pre-payments), and $31.6 billion in other expenses (warranties, etc).\nIt takes a lot of cash to be an automaker and the cash spigot turns off when growth stops...\n<img alt=\" \" title=\" \" src=\"https://community-static.tradeup.com/news/eed33e6f3126cad927aa48dcce4827cd\" tg-width=\"2400\" tg-height=\"1350\"> </body></html>","htmlText":"<html><head></head><body><h2 id=\"id_1962280313\"><a data-mention-id=\"TSLA\" class=\"teditor-mention\" data-mention-name=\"Tesla Motors\" href=\"https://ttm.financial/S/TSLA\">$Tesla Motors(TSLA)$</a></h2>\nEnergy storage is no longer a growth business for Tesla and the next step is margin pressure.\nThis was all completely foreseeable.\n1. Tesla had the capacity to take advantage of Biden-era battery subsidies more than any other company.\n2. Subsidies bring competitors, but supply takes time to come online.\n3. Eventually, added supply puts pressure on pricing, eating margins for everyone.\nWe're between #2 and #3 today. Over the next 2 years, margins will compress further, as energy products always do.\nTale as old as time.\n<img alt=\" \" title=\" \" src=\"https://community-static.tradeup.com/news/c559c29d09a32da83f3f4ca37596aa34\" tg-width=\"2400\" tg-height=\"1350\"> \nRelated: Tesla is sitting on its highest level of debt and future obligations, including net payables of $11.7 billion, $3.4 billion in unearned revenue (FSD pre-payments), and $31.6 billion in other expenses (warranties, etc).\nIt takes a lot of cash to be an automaker and the cash spigot turns off when growth stops...\n<img alt=\" \" title=\" \" src=\"https://community-static.tradeup.com/news/eed33e6f3126cad927aa48dcce4827cd\" tg-width=\"2400\" tg-height=\"1350\"> </body></html>","text":"$Tesla Motors(TSLA)$ Energy storage is no longer a growth business for Tesla and the next step is margin pressure. This was all completely foreseeable. 1. Tesla had the capacity to take advantage of Biden-era battery subsidies more than any other company. 2. Subsidies bring competitors, but supply takes time to come online. 3. Eventually, added supply puts pressure on pricing, eating margins for everyone. We're between #2 and #3 today. Over the next 2 years, margins will compress further, as energy products always do. Tale as old as time. Related: Tesla is sitting on its highest level of debt and future obligations, including net payables of $11.7 billion, $3.4 billion in unearned revenue (FSD pre-payments), and $31.6 billion in other expenses (warranties, etc). 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