Haris Khurshid, chief investment officer of Karobaar Capital, said the conference call further confirmed that Tesla is still in "build mode" and this state is likely to continue
Haris Khurshid, chief investment officer of Karobaar Capital, said the conference call further confirmed that Tesla is still in "build mode" and this state is likely to continue. "Some investors had expected that its investment cycle was close to peaking, but the signal released by management was that the heaviest capital expenditures are still its core strategy, and the return cycle will be several years." Musk hardly defended the current quarter's performance during the conference call, but spent almost all his time explaining his capital allocation logic. What he's essentially asking investors to do is view today's spending as a building block for future business, not as a drag on current earnings. ""The core debate after this conference call is no longer whether Tesla spent too much this quarter, but whether investors believe that this infrastructure construction is "ahead of demand" or "ahead of reality." That will ultimately determine whether this capital spending cycle creates significant value or becomes just an expensive detour. "