4 ms·
Right, but while Tesla has positive gross margins, they have never turned an annual profit (Positive GAAP Net Income).
by hodder 6y ago
Right, but while Tesla has positive gross margins, they have never turned an annual profit (Positive GAAP Net Income).
- AnthonyMouse 6y agoThis is the same as the people who complained that Amazon never turned a profit for many years. But it wasn't because they weren't making money per unit, it was because they were spending it all and then some on expansion. If you make profitable cars and you want to make profitable cars and trucks then you spend all your car profits building a truck factory. In cash-based accounting that looks like losing money right up until the point that it turns into making twice as much.
- gamblor956 6y agoAmazon did turn a profit for many years on an EBITDA basis. They reinvested that profit in R&D, but they could also have chosen to send those profits to the shareholders as dividends. Tesla has not achieved profit on an EBIDTA basis, so it's not even remotely the same thing.
- jungturk 6y agoTSLA had positive EBIDTA in 2016, 2018 and 2019 (and Q1 2020). https://www.marketwatch.com/investing/stock/tsla/financials https://www.marketwatch.com/investing/stock/tsla/financials
- gamblor956 6y agoTesla had positive non GAAP EBITDA, which means nothing.