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>If they wanted to show profits today they could give up building and expanding factories and stop entering new product categories Can you show me in the finan
by itsoktocry 6y ago
>If they wanted to show profits today they could give up building and expanding factories and stop entering new product categories
Can you show me in the financial statements where this "aggressive investing" in factories is, and how it affects net profit? Why are they doing it if revenues are stagnant?
- modeless 6y agoFactory construction expenses aren't explicitly broken out in the financials. But cutting R&D could more than double their net income this quarter, if they wanted. What's your point? Do you believe that doubling their number of vehicle factories along with significant expansions at both existing factories isn't having a material impact on their expenses? They are doing it because they need more capacity to increase revenue, because their ASP is lower in the new markets they've entered. And because they need local factories to reduce tariffs. And do you really think that comparing this quarter YoY is a good way to evaluate their revenue growth?
- itsoktocry 6y ago>But cutting R&D could more than double their net income this quarter, if they wanted. What's your point? What's your point? That if we exclude all expenses from their income statement they'd be profitable? Unfortunately, they can't do that. >They are doing it because they need more capacity to increase revenue Are any of their factories running near capacity? >And do you really think that comparing this quarter YoY is a good way to evaluate their revenue growth? Probably not. Q1 y-o-y wasn't great either though.
- modeless 6y agoMy point is succinctly stated here: https://news.ycombinator.com/item?id=23921383 https://news.ycombinator.com/item?id=23921383