3 ms·
Let's see: Tesla: Growing rapidly, huge customer interest & pre-orders, positive margin on product, easy to see that it may grow big enough to overcome fixed c
by greglindahl 10y ago
Let's see:
Tesla: Growing rapidly, huge customer interest & pre-orders, positive margin on product, easy to see that it may grow big enough to overcome fixed costs.
Twitter: Not growing rapidly, hard to see that they'll become profitable without cutting out a lot of expenses.
Not at all the same kind of beast.
- jondubois 10y agoLess than 0% is not what I would call "huge margins": https://www.google.com/finance?q=NASDAQ%3ATSLA&fstype=ii&ei=H_sMWKHsEJiPsQGPyrFY https://www.google.com/finance?q=NASDAQ%3ATSLA&fstype=ii&ei=... Twitter revenue is growing very rapidly, just like Tesla's: https://www.google.com/finance?q=NYSE%3ATWTR&fstype=ii&hl=en&ei=e_sMWNHYO8mSsQHWs5jYDA https://www.google.com/finance?q=NYSE%3ATWTR&fstype=ii&hl=en... Economically speaking, they're very similar.
- greglindahl 10y agoBy margins, I'm referring to the car COGS vs selling price, not including the cost of design. (Yes, I know that this isn't the usual yardstick for mature car companies, but we have no idea how many model S/X cars are going to sell before it needs a new platform, and this IS the usual yardstick for Silicon Valley startups.) Twitter revenue is growing much slower than Tesla's, especially if you take into account the pre-orders for Model 3. I agree that some economists/financial people see it the way you describe. That's not the only point of view out there.
- greglindahl 10y agop.s. I never said "huge margins".