Tesla: 2nd And 3rd Order Effects Of Production Growth

Jan. 09, 2022 5:19 PM ETTesla, Inc. (TSLA)171 Comments


  • Investing is all about going beyond 1st order thinking, especially with growth stocks like Tesla.
  • Its stock price soared more than 13% on Monday after reporting its Q4 deliveries topped expectations, which largely is only the 1st order effects.
  • This article explores the 2nd and 3rd order effects to explore the impacts of Tesla’s production and delivery growth.
  • And you will see that the potential benefits of production and delivery growth are more than, much more, what is on the surface.

Electronic Car Maker Telsa Reports Quarterly Earnings

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Thesis and background

Investing is all about going beyond 1st order thinking. As explained insightfully by Howard Marks in his book entitled The Most Important Thing:

First-level thinking is simplistic and superficial, and just about everyone can

This article was written by

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Proven solutions for both high income & high growth with isolated risks

** Disclosure: I am associated with Sensor Unlimited.

** Master of Science, 2004, Stanford University, Stanford, CA 

Department of Management Science and Engineering, with concentration in quantitative investment 

** PhD,  2006, Stanford University, Stanford, CA 

Department of Mechanical Engineering, with concentration in  advanced and renewable energy solutions

** 15 years of investment management experiences 

Since 2006, have been actively analyzing stocks and the overall market, managing various portfolios and accounts and providing investment counseling to many relatives and friends.

** Diverse background and holistic approach 

Combined with Sensor Unlimited, we provide more than 3 decades of hands-on experience in high-tech R&D and consulting, housing market, credit market, and actual portfolio management. We monitor several asset classes for tactical opportunities. Examples include less-covered stocks ideas (such as our past holdings like CRUS and FL), the credit and REIT market, short-term and long-term bond trade opportunities, and gold-silver trade opportunities. 

I also take a holistic view and watch out on aspects (both dangers and opportunities) often neglected – such as tax considerations (always a large chunk of return), fitness with the rest of holdings (no holding is good or bad until it is examined under the context of what we already hold), and allocation across asset classes.

Above all, like many SA readers and writers, I am a curious investor – I look forward to constantly learn, re-learn, and de-learn with this wonderful community.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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