3 ms·

You're right to be worried. They're not profitable, have never been profitable, don't look like they're ever going to be profitable. Be smart with your money.

dragontamer 8y ago
You are correct on a yearly basis. But Q3 and Q4 of 2018 were profitable. So TSLA has made a quarterly profit. They've never made a yearly profit. Some would argue the last two quarters of profit is a turning point for the company. Q1 2019 looks like they will lose money though. Jury is still out on whether or not 2019 will be a profitable year.
- gamblor956 8y ago
  Tesla was not profitable in Q3 or Q4 2018 on a GAAP basis. They were profitable on a very specific "unicorn accounting" metric that eliminates most of the expenses that other auto companies include in their financial reporting metrics. GAAP (and IFRS, the international version of GAAP) is industry-specific, so please none of the arguments about how it doesn't reflect the "true" state of Tesla's financial situation. It works just fine for every other carmaker.
  - dragontamer 8y ago
    Interesting. Do you have any good links that goes into the details of this? I'm always interested in learning how to read financial sheets better. Its outside my field of computers, but I'd love to learn the skill. I've got a general idea of how GAAP works and other such cash-flow matters, but no official training in the subject. EDIT: I did some searching... and it appears that Tesla was GAAP profitable in Q3 and Q4 2018, according to their quarterly filings. I'm very curious how and why you don't consider it GAAP. Is there something in the financial statement that is a red flag to you?
  - dmode 8y ago
    Literally every company report GAAP and non-GAAP numbers. And you publish a reconciliation report. non-GAAP profitability is as valid as GAAP profitability, otherwise you will get dinged by SEC as you are publishing those numbers in your annual report.

dragontamer 8y ago

You are correct on a yearly basis. But Q3 and Q4 of 2018 were profitable. So TSLA has made a quarterly profit. They've never made a yearly profit. Some would argue the last two quarters of profit is a turning point for the company. Q1 2019 looks like they will lose money though. Jury is still out on whether or not 2019 will be a profitable year.

gamblor956 8y ago
Tesla was not profitable in Q3 or Q4 2018 on a GAAP basis. They were profitable on a very specific "unicorn accounting" metric that eliminates most of the expenses that other auto companies include in their financial reporting metrics. GAAP (and IFRS, the international version of GAAP) is industry-specific, so please none of the arguments about how it doesn't reflect the "true" state of Tesla's financial situation. It works just fine for every other carmaker.
- dragontamer 8y ago
  Interesting. Do you have any good links that goes into the details of this? I'm always interested in learning how to read financial sheets better. Its outside my field of computers, but I'd love to learn the skill. I've got a general idea of how GAAP works and other such cash-flow matters, but no official training in the subject. EDIT: I did some searching... and it appears that Tesla was GAAP profitable in Q3 and Q4 2018, according to their quarterly filings. I'm very curious how and why you don't consider it GAAP. Is there something in the financial statement that is a red flag to you?
- dmode 8y ago
  Literally every company report GAAP and non-GAAP numbers. And you publish a reconciliation report. non-GAAP profitability is as valid as GAAP profitability, otherwise you will get dinged by SEC as you are publishing those numbers in your annual report.