5 ms·

Capex is not included in net income, so your analysis is completely wrong.

• crabasa 10y ago
  Of course Capex isn't included, but its direct consequence (depreciation) is. Tesla incurred almost $1B of depreciation in 2016: http://www.marketwatch.com/investing/stock/tsla/financials http://www.marketwatch.com/investing/stock/tsla/financials
  • martinko 10y ago
    So I dont see how the quote ties in with your statements about Tesla knowing where to invest (=capex)
    • crabasa 10y ago
      Let's break it down for you: 1. Telsa has many investment ideas 2. Tesla spends massive amounts of CAPEX 3. Tesla incurs large amount of depreciation 4. Tesla's net income goes down
      • bigtimeidiot 10y ago
        >Tesla spends massive amounts of CAPEX How do they spend in relation to the other car makers? Do you think that auto manufacturing capex simply turns off one day? It's a capital intensive industry.