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The only magic is the cult of Elon and "US made". What most don't know is that Tesla is deep in the red financially if you don't count sale of regulatory credit
by Daho0n 6y ago
The only magic is the cult of Elon and "US made". What most don't know is that Tesla is deep in the red financially if you don't count sale of regulatory credits to other automakers and they are quickly going away (3-4 years max). Tesla's 2020 net income of $270 million doesn't look great if you subtract the $428 million per quarter from those credits. Unless something actually magic happens in the next few years that will cause Tesla to sell more cars than now, even with other automakers gearing up, then they are going to either be sold or die off. Personally I very much doubt sales will be better next year. Especially with the problems with extremely bad quality control and software. But hey, I'm sure the stock market will still love him.
- donaldo 6y agoCathie Woods seems to believe that sales are going to be exponential (they have been so far) and battery costs will keep falling + huge growth potential from robotaxi fleet
- Daho0n 6y agoThe funds biggest stock is Tesla so she is doing her job of making them more interesting, as she should.
- Isinlor 6y agoProfits are not their stated end goal, but acceleration of transition to sustainable energy. Tesla is rapidly expanding and investing. There is no need to focus on profits before they achieve scale. As long as they manage to drag the world car market to EV they will achieve their goal, even if they die in the process.