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My guess: they saw a flooded market with no brand loyalty because its a box that sits unnoticed in an office or living room and said "We can leave the scraps fo
by icanhackit 9y ago
My guess: they saw a flooded market with no brand loyalty because its a box that sits unnoticed in an office or living room and said "We can leave the scraps for Linksys and TP-Link" then saw Tesla's margins and said "Yeah, that looks nice."
- elmar 9y agoTesla burns cash, loses more than $4,000 on every car sold http://www.reuters.com/article/us-teslamotors-cash-insight-idUSKCN0QE0DC20150810 http://www.reuters.com/article/us-teslamotors-cash-insight-i...
- icanhackit 9y ago1.) That article is from 2015. 2.) Dividing operating losses by number of cars sold is...not a very good way of calculating things. You're taking R&D, new capital (Gigafactories, retail outlets, acquisitions like SolarCity) and all other expenses and dividing by number of cars sold. It makes for a nice clean Excel spreadsheet (A1 divided by A2) but a poor understanding of how emerging businesses with huge growth potential work under the hood.
- elmar 9y agoWhy Investors Love Elon Musk, Even Though Tesla Is Losing Money (2017) https://www.forbes.com/sites/howardhyu/2017/02/24/why-investors-love-elon-musk-even-though-tesla-is-losing-money/ https://www.forbes.com/sites/howardhyu/2017/02/24/why-invest...
- icanhackit 9y agoIt's a more recent article but doesn't invalidate the primary point: the cars aren't losing money, vast capital investment results in losses. The stock price remains high despite this because significant investments implies significant future growth and innovation.