4 ms·
Not that weird. Seeking profitability too early can kill a company. Amazon barely turned a profit for almost a decade specifically to shovel money back into the
by isthispermanent 7y ago
Not that weird. Seeking profitability too early can kill a company. Amazon barely turned a profit for almost a decade specifically to shovel money back into the operation.
Now you'll say that Amazon __could__ have turned a profit earlier than that. Which is true. For Tesla it is not, turning a profit isn't an option. The difference being that selling books and other things on the internet is relatively easy compared with manufacturing cars using an entirely new set of unproven technologies and techniques.
So if we use that model to think about Amazon overwriting retail, then Tesla would be looking to overwrite transportation. Given the difficulties of doing the latter I would expect Tesla to flounder around for another 10 years before it really starts to get going.
After that, if they get there (big if), the sky is the limit and the market is Teslas market. That's the point behind the "being profitable is irrational and stupid" comment. Penny wise, dollar stupid.
But as it has been pointed out ad infinitum, it's a big gamble. So far Tesla has delivered on product, they'll need to prove that they can deliver on operations for this thing to take off all the way.
Juries out, but I'm willing (and do) bet that they'll make it. Too many people (including banks and governments) want this to work.