Agreed, they seem to be ok for now I don't know teslas model 3 unit production costs, but if you look at cost curves for other car companies as they scale up m

Agreed, they seem to be ok for now I don't know teslas model 3 unit production costs, but if you look at cost curves for other car companies as they scale up manufacturing, and take into account all the fixed costs and manual processes currently used in production of a small number of model 3s, the unit cost is probably massively high. Historically you can reduce those costs by 80%+ as you scale, so it is possible tesla can produce profitably. On the other hand, tesla set the price for its car before it started making it. So it's entirely possible that they were underestimating the cost / complexity of the manufacturing process and that they simply can't support their cost base with that price. Again, this is a hypothetical, but real concern More likely is they get there, but takes longer / more money than expected. And in a competitive world, that can be catastrophic We don't know which of these hypothetical scenarios will play out, so we must assess the likelihood that each happens and value the company that way. Current valuation suggests probabikty of success is very very high and value of success is very large; id argue that both those numbers should be lower