Karobaar Capital's chief investment officer Haris Khurshid said the conference call further confirmed that Tesla is still in “construction mode” and that this state of affairs is likely to continue. “Some investors had expected their investment cycle to be close to peaking, but management is signaling that the heaviest capital expenditure is still the core strategy, and the payback period will last several years. “Musk hardly defended the quarter's results during the conference call and spent almost all of his time explaining his capital allocation logic. He's actually asking investors to look at today's spending as the cornerstone of future business rather than a drag on current profits.” “The central debate after this call was no longer whether Tesla spent too much money this quarter, but whether investors believed that this kind of infrastructure construction was 'ahead of demand' or 'ahead of reality'. This will ultimately determine whether this capital expenditure cycle will create significant value or simply become an expensive detour.”

Karobaar Capital's chief investment officer Haris Khurshid said the conference call further confirmed that Tesla is still in “construction mode” and that this state of affairs is likely to continue. “Some investors had expected their investment cycle to be close to peaking, but management is signaling that the heaviest capital expenditure is still the core strategy, and the payback period will last several years. “Musk hardly defended the quarter's results during the conference call and spent almost all of his time explaining his capital allocation logic. He's actually asking investors to look at today's spending as the cornerstone of future business rather than a drag on current profits.” “The central debate after this call was no longer whether Tesla spent too much money this quarter, but whether investors believed that this kind of infrastructure construction was 'ahead of demand' or 'ahead of reality'. This will ultimately determine whether this capital expenditure cycle will create significant value or simply become an expensive detour.”