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Selling more cars is great, but YoY reduction in revenue will not justify the valuation of TESLA stock.
by ianferrel 7y ago
Selling more cars is great, but YoY reduction in revenue will not justify the valuation of TESLA stock.
- cloudwalking 7y agoDepends how you define "reduction in revenue." YoY growth in units but reduction in per-unit profit is often a very good sign. See Apple when they introduced the iPod mini. Average sale price went down but number of units continued to increase.
- ianferrel 7y agoTotal revenue. Apple did not make less total revenue when they introduced a lower-priced iPod. The claim above was that Tesla would have had a reduction in total revenue without being able to book pre-sales for this half-baked feature.