It wasn’t me !
Good earnings report
Thanks for posting this.
I’ll just comment on the ad revenue thing and compare to pre-musk
Ad revenue decline continues
Ad revenue in the quarter dropped 14% from a year earlier, a decline SpaceX blamed on a migration to a new advertising system.
Ad sales fell to $367 million from $426 million in the same quarter last year.
During the twitter, pre Musk days , ad revenue was near $5 billion.
It’s dropped by a factor of more than 10.
The company generated $4.46 billion in global ad revenue in 2021 and $4.1 billion in 2022, according to eMarketer. Revenue cratered to $2 billion in 2023, a 51.7% decrease following Musk’s takeover. It dipped again last year to $1.94 billion.
Except the stock dropped even with the earnings, this article blames the higher Capex on AI.
This is interesting. In addition to the giant chip factory being planned in Grimes Co., they’re making a move to greatly expand into solar manufacturing in Ft. Bend Co. What’s particularly ironic is that they’ll almost certainly get a tax abatement to do this at the same time as consumers have lost their tax break for installing home solar systems. Make it make sense.
It occurs to me that Tesla/SpaceX is approaching its expansion plans similar to how oil companies used to just spend boatloads of money to get into areas because the stock market rewarded the “potential.” It was a hype machine.
That all changed about 10 years ago when the market started actually caring about profitability in oil companies. It’ll be interesting to see how these enormous cash outflows are viewed.
In my opinion, Teslas stock price has always been more hype than substance. However I honestly only did financial analysis around 10 years ago.
A very disturbing thing we’ve unleashed on people without their consent
or awareness.
There should be severe consequences for the user and provider of these
“tools”. Our immigrant genius hasn’t thought through this much it appears.
And I wish xAI was not a part of SpaceX.
Tax abatements are granted more often than not
I analyzed solar panels with all the so called discounts and the ROI wasn’t there , verses traditional power
Well, that was your choice and analysis on whether to spend your money based on your particular situation. Mine will pay for itself in less than 10 years and insulates me from power outages and rate increases.
A tax abatement comes at the expense of all local taxpayers to fund an industry that the federal government has dictated should get no public subsidies through consumer tax incentives. And it’s a gift to a trillionaire.