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A company that went from selling 11 cars in 2011 to 200k cars in 2018 is poorly run ?
by dmode 8y ago
A company that went from selling 11 cars in 2011 to 200k cars in 2018 is poorly run ?
- dragontamer 8y agoA company that went from losing $49 million per quarter in 2011 to losing $742 million per quarter in Q2 2018 is poorly run. Yes. That's pretty bad. Their growth is quite backwards, they've learned to lose more money over time. http://ir.tesla.com/news-releases/news-release-details/tesla-motors-reports-first-quarter-2011-results http://ir.tesla.com/news-releases/news-release-details/tesla... http://ir.tesla.com/static-files/7235e525-db16-470c-8dce-9ecac0ad7712 http://ir.tesla.com/static-files/7235e525-db16-470c-8dce-9ec...
- dmode 8y agoNot sure what your point is. If you are growinig like crazy in a capital intense industry, you are bound to grow your loses. Tesla could have chosen to sell zero cars and have zero losses. What matters is demand and profitable unit economica (Tesla cars have healthy gross margins)
- dragontamer 8y agoOkay, well lets ignore CapEx then (~$600 Million). Yeah, lets get rid of it. Pretend that in Q2 2018 Tesla spent ziltch, nada, absolutely nothing, on expanding its factories or buying equipment. EVEN IF WE IGNORE $600 Million worth of CapEx, Tesla is still $100 million loss. Again, Tesla lost a total of $742 million, and no, investments into equipment or building space does NOT fully explain the loss.
- matwood 8y agoTSLA is horribly run and managed. Another responder already mentioned the losses from TSLA itself, but I think the SolarCity bailout is proof enough. https://www.forbes.com/sites/greatspeculations/2016/07/12/bailing-out-solarcity-costs-tesla-investors-7-4-billion/#5a5a15368785 https://www.forbes.com/sites/greatspeculations/2016/07/12/ba...