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R&D isn't the only place you can invest profits. Building some of the world's largest factories, filling them with equipment, and hiring employees to fill them,
by gibolt 7y ago
R&D isn't the only place you can invest profits. Building some of the world's largest factories, filling them with equipment, and hiring employees to fill them, is not cheap upfront. It is an investment which should pay dividends.
Semi is likely at least a year away from any significant scaling.
- ksherlock 7y agoThe chinese factory was built with loans, not reinvested profits.
- aguyfromnb 7y agoShow us where it shows up on the financial statements then? I bet you cant. Because after stiffing Nevada[1], Buffalo[2], and California [3], Tesla went hat-in-hand to China for special loans and promises to pay taxes there[4]. I guess you could say it's "smart business", in the same way that PE buying a company, gutting it and selling it off for parts is "smart business". But make no mistake: China owns that factory. This is not conspiracy, it's in their disclosures. I simply cannot understand what people root for a company doing these things. [1] http://thestoreyteller.online/2020/01/17/tesla-surges-to-92b-market-cap-but-wont-pay-storey-county-for-police-and-fire-obligations/ http://thestoreyteller.online/2020/01/17/tesla-surges-to-92b... [2] https://nypost.com/2019/08/28/cuomos-buffalo-billion-tainted-tesla-solar-city-faces-audit/ https://nypost.com/2019/08/28/cuomos-buffalo-billion-tainted... [3]https://www.vox.com/identities/2019/9/30/20891314/elon-musk-tesla-labor-violation-nlrb https://www.vox.com/identities/2019/9/30/20891314/elon-musk-... [4]https://www.autonews.com/china/tesla-pay-china-323-million-year-taxes-factory-site https://www.autonews.com/china/tesla-pay-china-323-million-y...
- postmeta 7y agoMake no mistake: USA owns that other factory!