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When almost ever other car company is burning money, sustaining massive investment in multiple new massive factories, launching new products, and producing cars
by nickik 6y ago
When almost ever other car company is burning money, sustaining massive investment in multiple new massive factories, launching new products, and producing cars with pretty good margin and not losing money is an pretty big accomplishment.
Its not that long ago people were arguing even a small crisis would wipe out Tesla.
- itsoktocry 6y ago>producing cars with pretty good margin and not losing money is an pretty big accomplishment. If you back out the regulatory credits they've lost money on every car they've ever sold, for almost 20 years. Where do you get "good margins" from? This is an example of narrative versus financial data.
- SEJeff 6y agoTesla's first car was the Roadster, and it was released in 2008. How do you get "almost 20 years" when the first car they released was 12 years ago? Tesla was founded in 2003, but even that is not 20 years.
- deleted 6y ago[deleted]
- nickik 6y agoThe margins on the car are actually very good, this is evident in the official data and confirmed by expert breakdowns. They don't make money because they are investing lots of money all the time. People seem to miss that they only launched their first large production cars a few years ago. Its insanely difficult to start a car company and to scale it to the level Tesla is now with a product that basically nobody else can do profitable is a gigantic achievement. They are currently building 3 huge new factories.
- modeless 6y agoGross margin on cars is 25% this quarter, 17% after removing regulatory credits. What "financial data" are you using to come to the conclusion that they don't have good margins?
- itsoktocry 6y ago>Gross margin on cars is 25% this quarter You can go broke with 99% gross margins.
- modeless 6y agoYou were specifically arguing that their margins are not good.
- wyldfire 6y ago> Its not that long ago people were arguing even a small crisis would wipe out Tesla. It would be very challenging for them if the political environment changed and regulatory credits disappeared altogether.
- nickik 6y agoThat would not wipe Tesla out. The credits are nice bonus, specially in COVID times, but not having them would not get them near bankruptcy. They would maybe had to raise some more money and not invest as much.