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Agree. Given the growth numbers and their market leadership in the EV area, there's a strong case to be made that this 'loss' is more of an 'investment' to set

by neosat 7y ago

Agree. Given the growth numbers and their market leadership in the EV area, there's a strong case to be made that this 'loss' is more of an 'investment' to set up for future revenue growth and consequently profits that come with increasing maturity and operational cost reductions.

xkjkls 7y ago
They have shrunk in sales YoY in the US and Norway, their two largest markets. They managed to grow globally by finding the most advantageous subsidies for them to take advantage of. However, even that only gave them 1% growth of the past year.
- woodandsteel 7y ago
  The low growth was because of production problems and because they maxed out their single factory. Now they have another factory producing and a third under construction. As to subsidies, governments are pushing ev's harder and harder. The EU has continually-increasing fleet standards that can be met only by adding more ev's, and China has continually increasing ev production standards. Ev sales are going to keep increasing, and Tesla makes the best ev's. Sales, revenues and profits are going to keep going up.
  - xkjkls 7y ago
    Why were they able to meet a run rate or 500k cars a year in Q4 of last year and not sustain it if their factory was maxed out? And why would they claim in projections that their factory was capable of producing that if they didn’t meet that? Companies are rarely production constrained. Many claim they are, but the fact that Tesla sales in their two largest markets declined doesn’t indicate to me that production is their number one issue.
    - woodandsteel 7y ago
      At 500k per year they were still nowhere near meeting global demand, and they decided to move sales away from markets they were already well-established in, and into new ones. The nice thing about this disagreement we are having is it will be settled by what happens in the next year. I say Tesla's sales will go up strongly now that it has another factory. I take it you think they won't, and all that new capacity will go unsold.
      - xeromal 7y ago
        You're spot on with everything. I think the biggest hitch this year will be China. That is such a huge market
      - xkjkls 7y ago
        Again they produced 367k, not 500k, like they claimed they could. If they could produce 500k, why claim they could, and why didn’t they? And I would say Tesla’s revenue growth will start to flatline, yes, as the last two quarters have shown.
        woodandsteel 7y ago
        Their production capacity increased in every quarter. By the end of the year it was at a 500k per year rate. And it is continuing to go up rapidly, now that it has a new factory.
        xkjkls 7y ago
        Did it? They only produced a small number more than they did per quarter at the end of last year. Why do we think they are production constrained?

by neosat 7y ago

xkjkls 7y ago

They have shrunk in sales YoY in the US and Norway, their two largest markets. They managed to grow globally by finding the most advantageous subsidies for them to take advantage of. However, even that only gave them 1% growth of the past year.

woodandsteel 7y ago
The low growth was because of production problems and because they maxed out their single factory. Now they have another factory producing and a third under construction. As to subsidies, governments are pushing ev's harder and harder. The EU has continually-increasing fleet standards that can be met only by adding more ev's, and China has continually increasing ev production standards. Ev sales are going to keep increasing, and Tesla makes the best ev's. Sales, revenues and profits are going to keep going up.
- xkjkls 7y ago
  Why were they able to meet a run rate or 500k cars a year in Q4 of last year and not sustain it if their factory was maxed out? And why would they claim in projections that their factory was capable of producing that if they didn’t meet that? Companies are rarely production constrained. Many claim they are, but the fact that Tesla sales in their two largest markets declined doesn’t indicate to me that production is their number one issue.
  - woodandsteel 7y ago
    At 500k per year they were still nowhere near meeting global demand, and they decided to move sales away from markets they were already well-established in, and into new ones. The nice thing about this disagreement we are having is it will be settled by what happens in the next year. I say Tesla's sales will go up strongly now that it has another factory. I take it you think they won't, and all that new capacity will go unsold.
    - xeromal 7y ago
      You're spot on with everything. I think the biggest hitch this year will be China. That is such a huge market
    - xkjkls 7y ago
      Again they produced 367k, not 500k, like they claimed they could. If they could produce 500k, why claim they could, and why didn’t they? And I would say Tesla’s revenue growth will start to flatline, yes, as the last two quarters have shown.
      - woodandsteel 7y ago
        Their production capacity increased in every quarter. By the end of the year it was at a 500k per year rate. And it is continuing to go up rapidly, now that it has a new factory.
        xkjkls 7y ago
        Did it? They only produced a small number more than they did per quarter at the end of last year. Why do we think they are production constrained?