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Sure, but if its stock price plunged due to massive sellout, its profits wouldn’t really change. I’m directly refuting the claim that Tesla is unprofitable. It’
by bhupy 6y ago
Sure, but if its stock price plunged due to massive sellout, its profits wouldn’t really change. I’m directly refuting the claim that Tesla is unprofitable. It’s in fact a sustainable dividends-paying enterprise. Perhaps a comically over-priced enterprise, but sustainable and dividends-paying nonetheless.
- astrange 6y agoI mean, it's not dividend-paying, nor is it doing stock buybacks. Aren't they doing equity raises? That's literally reducing the value of your stock. They are doing a good job paying back their bonds and their hype field is certainly repaying investors for now.
- bhupy 6y agoYou’re right; I meant to say that they can be expected by current investors to be dividends-paying at any time in the future because their economics are fundamentally GAAP profitable at this point (https://www.nytimes.com/2021/01/27/business/tesla-earnings.html https://www.nytimes.com/2021/01/27/business/tesla-earnings.h...). This is no longer an unsustainable business we’re talking about here, hype notwithstanding. Now, Uber on the other hand...
- imtringued 6y agoTesla is a company that is doing okay. I can comfortably say that it will exist in 40 years but I don't think that it will actually ever justify its current valuation. What is probably going to happen in 10 years is that investors wake up and sell their overpriced shares until the P/E is at 50 or something.