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I'm not sure this makes sense: > "Tesla, like most Silicon Valley companies, uses most of its revenue to finance research and development for new products. Rol
by strictnein 11y ago
I'm not sure this makes sense:
> "Tesla, like most Silicon Valley companies, uses most of its revenue to finance research and development for new products. Rolling out new products with minimal required development is crucial to this strategy"
Those sentences just don't follow. They spend lots on R&D and they need to roll out new products with minimal R&D?
And I'm pretty sure the majority of their revenue is spent building the cars. They did around $3.2 billion in revenue and sold 35,000 cars. Unless they somehow have unheard of margins of 50-60%, that means Tesla spends the large majority of their revenue on building vehicles.
To me, this community blog post reads like they started with the contrarian clickbait title, and went from there.
- apendleton 11y agoIt's clumsily worded, but I think what they were going for is something like "Tesla, like most Silicon Valley companies, uses most of its revenue to finance research and development for new products, so profitability depends on maximizing the returns on that R&D investment." The idea was that the R&D necessary for the Model S was intense, and the hope was to be able to extract more value from that investment with another vehicle that largely reused Model S's tech.
- colechristensen 11y agoIt's just not a software company and too many people don't get that. They're building their brand and developing their technology and supply chain with elite vehicles developing the potential for profit explosions when they're ready to release a commodity vehicle to the masses.
- deleted 11y ago[deleted]