{"id":12672,"date":"2020-10-24T08:30:00","date_gmt":"2020-10-24T12:30:00","guid":{"rendered":"https:\/\/einvestingforbeginners.com\/?p=12672"},"modified":"2022-06-01T15:40:06","modified_gmt":"2022-06-01T19:40:06","slug":"tesla-tsla-10q-analysis","status":"publish","type":"post","link":"https:\/\/einvestingforbeginners.com\/tesla-tsla-10q-analysis\/","title":{"rendered":"Tesla (TSLA) 10q: Links to All Filings (+In-depth Analysis on Recent 10-q)"},"content":{"rendered":"\n

To see all recent Tesla (TSLA) 10q filings registered with the Securities and Exchange Commission, click this link<\/a> or on the picture below.<\/p>\n\n\n\n

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TSLA Analysis (Recent 10-q)<\/strong><\/h2>\n\n\n\n

The automotive industry is tough to analyze right now, with recent quarterly figures looking disastrous for U.S. leaders like Ford, and General Motors, but also for international giants like Toyota, Honda, and Volkswagen. Everyone except for Tesla ($TSLA) seems to be having a really rough go at it, and projecting what the return of “normal” demand will be for them is very difficult in these early stages.<\/p>\n\n\n\n

You could argue that:<\/p>\n\n\n\n

  1. Car parts still deteriorate even when used less, so replacement cycles could stay consistent<\/li>
  2. Low interest rates could spurn V-shaped demand for new vehicles because of favorable financing options<\/li>
  3. The disproportionate negative effects to lower incomes won’t move the needle for new car sales, especially premium brands like Tesla<\/li><\/ol>\n\n\n\n

    You could also argue that:<\/p>\n\n\n\n

    1. People are going to hold on to their cars longer due to economic uncertainty<\/li>
    2. Bankruptcies in car rental companies like Hertz has flooded the used car market, driving down auto prices across the board<\/li>
    3. Less driving both now and into the future of remote working means less wear and tear and a longer replacement cycle<\/li><\/ol>\n\n\n\n

      I’m not here to argue the former points or the latter. I think the consequences of COVID-19 are much easier to quantify in other industries compared to the auto industry, especially when we are talking about the next 5-10 years. <\/p>\n\n\n\n

      China is the Key Right Now for Tesla<\/strong><\/h2>\n\n\n\n

      But I do think we can look at China for early indications of the type of “demand rebound” those companies are facing, which is pertinent to Tesla investors anyways, with China being the #2 country for the company in revenues. <\/p>\n\n\n\n\n\n\n\n

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      Source<\/a><\/figcaption><\/figure><\/div>\n\n\n\n

      Where the U.S. has been heavily criticized for their role in handling the COVID-19 crisis, China is looked to as the leader in the recovery– at least in the sense that they were “first-to-market” with the virus and have had a longer time to react. Of course, countries in the West including the United States have been upset with China’s handling of the crisis for other reasons, but that’s another topic altogether.<\/p>\n\n\n\n

      The media has been dropping hints around China’s progress with the COVID-19 recovery, as quickly observed by just a few recent headlines:<\/p>\n\n\n\n