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My outsider impression of Tesla is that while they are not profitable most quarters, they at least have a clear path to profitability. Before they ramped up th
by perlgeek 7y ago
My outsider impression of Tesla is that while they are not profitable most quarters, they at least have a clear path to profitability.
Before they ramped up their Model 3 production, they could have become profitable just manufacturing and selling Model S.
Instead they invested in a new model and its production lines.
If they need to become profitable at some point (because they run out of investors), it seems plausible that they could do that simply by producing and selling their existing models, and not come out with a new model for a while.
(I realize this hinges on a lot of assumption, like continued demand, stable margins etc., hence I don't think it's automatic that they will be profitable, but still plausible.)