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Manufacturing investment is a capital expense, it doesn't result in a loss.
by navigatesol 8y ago
Manufacturing investment is a capital expense, it doesn't result in a loss.
- jlmorton 8y agoCapex spending in the current quarter won't show up in the income statement, but past capital spending will be depreciated in future income statements. Tesla depreciated about $467 million in the current quarter.
- reitzensteinm 8y agoRight, but depreciation means you're accounting for the cost of yesterday's factory as you use it. If that gives you a loss, it's because your business is genuinely unprofitable. Ramping up manufacturing is hard on CF, but not intrinsically hard on P&L.