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> like Tesla, which loses ~$4K on every Model S they sell Could we please stop parroting this blatant falsehood? Their net loss for a particular operating per
by vonmoltke 11y ago
> like Tesla, which loses ~$4K on every Model S they sell
Could we please stop parroting this blatant falsehood? Their net loss for a particular operating period, when amortized over all the vehicles they sold in that period, came out to ~$4,000 per vehicle. That is not, in any way, shape, or form, the same as losing that money on each vehicle sold.
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- danhak 11y agoNobody disputes that Tesla currently operates at a net loss. They sell only one product at the moment but incur R&D expenses on several products that are not yet shipping in significant volume (Model X, Model 3, PowerPack/PowerWall). They're ramping SG&A in anticipation of those offerings as well. That is a separate issue than the deliberately misleading meme that the company "loses ~$4K on every Model S they sell" It's just wrong and completely disingenuous. If Tesla sells an incremental Model S this quarter, the impact on their cash flow is +28K not -4K.
- nivla 11y agoThat is not a sound logic. If Apple invests X in R&D where X is greater than revenue, it does not mean every Iphone/Ipad/Mac was sold on a loss. It just means they spend more than they made.
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- xyzzy4 11y agoBut it's only because they reinvest the money into research. Why doesn't that make sense to you?
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- matthewbauer 11y agoSource for anyone else interested: http://www.nasdaq.com/symbol/tsla/revenue-eps http://www.nasdaq.com/symbol/tsla/revenue-eps
- sbov 11y agoThis is a pretty narrow view of things. I had a couple decades worth of negative "earnings per share" before graduating from college and getting a job.