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The growth will come from China, where there's still plenty of EV incentives by the government. Growth in US will depend on new EV incentives IMO
by hw 7y ago
The growth will come from China, where there's still plenty of EV incentives by the government. Growth in US will depend on new EV incentives IMO
- xkjkls 7y agoWhy is that a bull thesis though? If the growth is that dependent on subsidies?
- toomuchtodo 7y agoChina is one of the biggest markets in the world and is committed to the rapid deployment of EVs. Unlike the US, those subsides will be around for a while. China also gave Tesla very favorable loan terms for the China Gigafactory.
- xkjkls 7y ago> Unlike the US, those subsides will be around for a while. Why? That doesn't seem like a stable investment thesis. > China also gave Tesla very favorable loan terms for the China Gigafactory. And if Tesla doesn't meet a number of targets the Chinese government takes complete ownership of the factory. They didn't give the good financing terms out of goodwill. Tesla entered an incredibly risky proposition with its Chinese factory.
- toomuchtodo 7y agoYou asked what the bill thesis is. Bull thesis is there’s a ton of growth ahead for Tesla. Market reaction seems to agree. If one disagrees with the market, short TSLA. Hasn’t worked out that well for those starting with relatively large amounts of capital, but maybe shorts are still right! Vote with your dollars.
- xkjkls 7y agoMaybe they agree, but the last two quarters should make anyone skeptical. For a company at the multiple it is it post negative to zero YoY growth for two quarters is crazy