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> Tesla is losing a massive amount of money This just simply isn't true. Losing the money means they spent it and got nothing for it. But every penny they spen

> Tesla is losing a massive amount of money This just simply isn't true. Losing the money means they spent it and got nothing for it. But every penny they spend, they get a lot of things - battery technology, market share, mindshare, network effect lockins (superchargers), etc. Tesla isn't losing its money, its investing it. Also, > The purpose of Tesla is not to make money; it is to pioneer fleets of smart mass-market electric cars, and the infrastructure to support them, and battery technology which is not limited to cars. Making money is ancillary. This is also false. It buys into Elon's marketing and it's false. The purpose of Tesla is to make money. Elon likes to say that it's not the money he is after, it's the faster pace of adoption for electric cars. But he also knows that the fastest way for this to happen is for Tesla to make money. The author is false. The purpose of Tesla is indeed to make money.

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encoderer 9y ago
Capital investments aren’t counted as losses on financial statements. So, you are correct about that. But they still do have losses.
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dragontamer 9y ago
> This just simply isn't true. Losing the money means they spent it and got nothing for it. But every penny they spend, they get a lot of things - battery technology, market share, mindshare, network effect lockins (superchargers), etc. Tesla isn't losing its money, its investing it. Yes, and such things are reflected in their balance sheet under "Assets" and "Goodwill". The problem with Tesla is that after accounting for their "Assets" and "Goodwill", they're still negative. Tesla says its "Goodwill" is worth $461,989,000 in 2016 for example. See its 2017 10k if you don't believe me (its in "thousands", so search for 461,989). http://ir.tesla.com/secfiling.cfm?filingID=1564590-17-3118&CIK=1318605 http://ir.tesla.com/secfiling.cfm?filingID=1564590-17-3118&C... The rest of Tesla's assets, which include every factory, every bit of cash, every investment... was estimated to be $ 692,925,000. That is, Tesla believes itself to be a $1 Billion company, but roughly half of its valuation is "Goodwill" and brand recognition. Believe it or not, Wall Street has names for the things you've described. Its all part of the calculation. ---------- Anyway, after accounting for all of that, Tesla is still losing money, quarter after quarter, year after year.
- Meegul 9y ago
  Unfortunately I believe the numbers you're citing are actually in relation to their Solar City acquisition. The roughly $1B figure you're citing is the valuation of Solar City, not Tesla.

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encoderer 9y ago

Capital investments aren’t counted as losses on financial statements. So, you are correct about that. But they still do have losses.

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dragontamer 9y ago

> This just simply isn't true. Losing the money means they spent it and got nothing for it. But every penny they spend, they get a lot of things - battery technology, market share, mindshare, network effect lockins (superchargers), etc. Tesla isn't losing its money, its investing it. Yes, and such things are reflected in their balance sheet under "Assets" and "Goodwill". The problem with Tesla is that after accounting for their "Assets" and "Goodwill", they're still negative. Tesla says its "Goodwill" is worth $461,989,000 in 2016 for example. See its 2017 10k if you don't believe me (its in "thousands", so search for 461,989). http://ir.tesla.com/secfiling.cfm?filingID=1564590-17-3118&CIK=1318605 http://ir.tesla.com/secfiling.cfm?filingID=1564590-17-3118&C... The rest of Tesla's assets, which include every factory, every bit of cash, every investment... was estimated to be $ 692,925,000. That is, Tesla believes itself to be a $1 Billion company, but roughly half of its valuation is "Goodwill" and brand recognition. Believe it or not, Wall Street has names for the things you've described. Its all part of the calculation. ---------- Anyway, after accounting for all of that, Tesla is still losing money, quarter after quarter, year after year.

Meegul 9y ago
Unfortunately I believe the numbers you're citing are actually in relation to their Solar City acquisition. The roughly $1B figure you're citing is the valuation of Solar City, not Tesla.