Earnings are no big surprise or shock $Tesla, Inc. (TSLA) $f...

Earnings are no big surprise or shock $Tesla, Inc. (TSLA) $for a high-growth company, last quarter's results are OK.

Tesla, Inc. 's stock price catalyst is never based on earnings, mainly depends on the quantity delivered or Elon Musk. However, if you look at Tesla, Inc. 's quarterly report, some people are still worried.

Sold 75% of its bitcoin holdings.
Tesla, Inc. sold $936 million worth of bitcoins in the second quarter, accounting for 75 per cent of its holdings. The company has only $218 million of bitcoin left on its balance sheet, compared with $1.26 billion in the first quarter.

Many investors have been feeling the pain as trading in the encrypted currency has fallen nearly 66% from its peak of about $69000 per token in November. Mr Musk seems to have mastered the market well because rough calculations show that Tesla, Inc. lost only about $189 million on his initial bitcoin investment. this is based on the difference between the conversion of its $936 million bitcoin into Fiat and the 75 per cent ($1.125 billion) of the initial $1.5 billion spent.

Initial: $1.5 billion
Loss: $1.125 billion (75% of $1.5 billion)-$936 million = $189 million
Tesla, Inc. 's cash flow
If Tesla, Inc. did not sell bitcoin, Tesla, Inc. 's cash flow would have changed from + $800m to-$100m. Tesla, Inc. 's cash flow has been negative in the past four quarters, which is no big deal.

Tesla, Inc. 's business activities have been able to generate stable cash flow. The problem cash flow of Tesla, Inc. negative film is mainly due to the larger investment cost and debt cost.

However, there is a cost of up to $1.3 billion known as "changes in operating assets and liabilities". That's why Elon Musk sells bitcoins to maintain positive cash flow.

What items are included? The following table is a summary of this item for the past four quarters (excluding the last two quarters). Since Tesla, Inc. has not yet submitted an official financial report to the SEC, it is not clear what the specific results will be in the second quarter, so we can only speculate on the first quarter and previous data.

Among these sub-items that are bad for operating cash flow, "other illiquid assets" have reached hundreds of millions of dollars in the past few quarters. The reasons for turning cash into "other non-current assets" may be land investment, equipment factories, goodwill, long-term investment, etc. It is difficult to convert these assets into cash. It is not clear whether most of the $1.3 billion in the second quarter also went into "other illiquid assets", and if so, we need to know more about where it is and whether it is an one-off or long-term expense.

Order reduction
Mr Musk has said several times recently that Tesla, Inc. may lower the price. If Tesla, Inc. 's price increase is an expression of confidence in "strong consumption", then Musk implies that Tesla, Inc. 's price reduction is easy to remind people of "consumption weakening".

In addition, Musk's recent comments on economic expectations and layoffs have led many to speculate that orders will weaken.

During the conference call, some analysts also raised the following questions:
"do you see any pressure on the order?"

"well, now, our problem is largely production."

"when it comes to your question, do we see the impact of macroeconomic on our demand?"

"maybe a little, but it's."

Not surprisingly, even iPhones has experienced a consumer downturn. Cars have a longer life cycle. The key question is, what can Tesla, Inc. do after the number of Tesla, Inc. orders is reduced?

At present, Tesla, Inc. still has a lot of orders. Musk said that the waiting period for a car is 6-12 months, which is enough for Tesla, Inc.. Due to Tesla, Inc. 's high gross profit margin, there is still room for price reduction. Tesla, Inc. 's price reduction will certainly attract consumers.

After the price reduction, Tesla, Inc. had to rely on new cars or new products to dominate the industry. During the conference call, Musk was very confident about the launch of the autopilot FSD and said he would continue to raise the price. As for Tesla, Inc. 's truck, it may not be delivered in mass production until next year.

Short-term price pressure-$857 or $908?
The following is $Tesla, Inc. (TSLA) $technical point of view, the price short-term resistance is greater.

The chart of the first week shows that once Tesla, Inc. touches the 30-WMA (price $857), there may be selling pressure.

Pressure at WMA 30max 857

From the daily chart, we can see that Tesla, Inc. 's broker has passed several recent highs since May, and the next pressure price will be close to 200dma, at $908.

Pressure is DMA200/$908.34

One last question:
Do you have strong confidence in Tesla, Inc.?

What is your short-term or long-term target price for Tesla, Inc.? (the stock will be spun off on August 4)