> A 20% decrease in cost is 20% more revenue now and forever. Cost and revenue are not related like that. You're thinking of profit margin, but even then it's

> A 20% decrease in cost is 20% more revenue now and forever. Cost and revenue are not related like that. You're thinking of profit margin, but even then it's not that simple. Most expenses can be written off, but profits are taxed. Revenue can be increased by spending, by adding features that increase demand, or just by plain advertising. You can have high profit margins but low profits due to low revenue, all because you cut spending. Moreover, for a new company, being profitable is far less important than (an expectation of) growth. A mostly unprofitable company like Tesla has incredibly high expectations of the future already priced in.