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"Tesla reports its finances in a different way from the Detroit automakers. Using the generally accepted accounting principles, or GAAP, used by GM or Ford, Tes
by dmfdmf 11y ago
"Tesla reports its finances in a different way from the Detroit automakers. Using the generally accepted accounting principles, or GAAP, used by GM or Ford, Tesla's operating losses per vehicle have steadily widened to $14,758 from $3,794 in the second quarter of 2014."
So by GAAP they are losing $14.7K/car. If I had money to speculate with I'd be shorting them, except this;
"Musk has steered Tesla out of tight corners before. In September 2012, the company faced a cash crunch, but raised money by selling shares and renegotiating the terms of a federal loan."
Tells me where the next round of "capital" is coming from when they get into trouble. Don't let anyone tell you we live under Capitalism.
- ZeroGravitas 11y agoOne of the companies mentioned in your quotes have been bailed out by the government to the tune of 80 billion, but Tesla wasn't it.
- curtis 11y agoI assume that you are referring to GM. That bailout was by no means cheap, but it wasn't 80 billion, either. According to Wikipedia: > In total $51 billion taxpayer money has gone in the GM bailout.[90] Until December 10, 2013, the U. S. Treasury recovered $39 billion from selling its GM stake. The final cost of the GM bailout cost the U. S. taxpayer $12 billion ... [1] I don't believe this affects your argument really, but I think it's important to try to keep the facts straight, especially about a subject as contentious (and I'd argue, significant) as the GM bailout. [1] https://en.wikipedia.org/wiki/General_Motors_Chapter_11_reorganization#Bailouts https://en.wikipedia.org/wiki/General_Motors_Chapter_11_reor...
- ZeroGravitas 11y ago51 billion for GM, 17 for GMAC. The other 12 went to Chrysler.
- aioprisan 11y agoSo $12 billion to save 1.2 million jobs and $34.9 billion in annual tax revenue? Seems like a no brainer. "According to a study by the Center for Automotive Research the GM bailout saved 1.2 million jobs and preserved $34.9 billion in tax revenue.[91]" http://www.usatoday.com/story/money/cars/2013/12/09/government-treasury-gm-general-motors-tarp-bailout-exit-sale/3925515/ http://www.usatoday.com/story/money/cars/2013/12/09/governme...
- cma 11y agoThat assumes the alternative use of the money they were considering was putting it under a mattress.
- cma 11y agoThat assumes no opportunity cost. Investing that $51 billion in a generic basket of stocks would have had a big payoff instead of a loss.
- nanofortnight 11y agoKeyword is loan. The loan in question was repaid this year.
- ninkendo 11y agoHow was it repaid if they're losing money? Sounds like their debt was simply restructured this year (they paid off the loan by just getting more financing.) The point is that the government is taking on a risk by giving tesla a loan, because they're not profitable and it's not guaranteed they'll be able to find a greater fool in the next round of financing.
- toomuchtodo 11y agoIt was repaid through and equity round (people like me bought TSLA stock, and that money was used to pay the DOE back). Frankly, I find your opinion grossly disingenuous. Tesla has pushed harder and faster than any other auto maker to electrify transportation. They're a phenomenal bet to make considering their existing track record of success.
- toomuchtodo 11y agoWho ever said living under pure capitalism was a good idea?