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The cars are profitable and have a healthy margin, it's just that Tesla is investing the profit into growth. Said growth has been pretty impressive. They've g
by sliken 7y ago
The cars are profitable and have a healthy margin, it's just that Tesla is investing the profit into growth. Said growth has been pretty impressive. They've gone from 0 to 1000 cars per day or so, and given their average selling price that puts them ahead of quite a few others, at least in the US market.
Is amazon not successful because for most of their existence they have invested in growth over taking profits?
- scarface74 7y agoThe cars have a marginal profit of 3% to 4% after you remove the tax credits and that’s not enough to cover their fixed cost. They aren’t “reinvesting” profits. They aren’t making enough to cover fixed costs. https://www.forbes.com/sites/jimcollins/2019/01/18/teslas-profit-warning-is-further-evidence-that-elon-musks-math-does-not-add-up/ https://www.forbes.com/sites/jimcollins/2019/01/18/teslas-pr... As far as Amazon. It’s still doubtful that Amazon retail will ever have the margins to justify its value. AWS on the other hand should stay a high margin business. https://www.fool.com/investing/2018/04/14/is-amazon-com-retail-business-actually-profitable.aspx https://www.fool.com/investing/2018/04/14/is-amazon-com-reta...