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It'll be pretty spectacular when stagflation and recession finally hits in earnest. They are not immune, even though they, as a manufacturer of luxury goods, wi
by m0zg 5y ago
It'll be pretty spectacular when stagflation and recession finally hits in earnest. They are not immune, even though they, as a manufacturer of luxury goods, will fare better than most.
- rcMgD2BwE72F 5y agoIn recession, companies offering the most innovative products tends to speed up and quickly gain market shares. Also, Tesla is by far the car makers with the least debt and they can easily finance themselves. I wouldn't be in their competitors shoes: they aren't profitable with EV and they must keep their ICE business afloat (or die).
- HWR_14 5y ago> , Tesla is by far the car makers with the least debt In stagflation, preexisting debt is a blessing.
- m0zg 5y ago^ HWR_14 knows what's up. I'm looking to borrow as much as I possibly can at the moment, as should any sane person with a good credit rating. Borrow a dollar, return the equivalent of 10 cents 5 years later.
- m0zg 5y agoStagflation will still hammer Tesla pretty bad. Think of what it'd do to their sales if Model S was $200K instead of $70K. We're headed in that direction. And before you say "it can't happen here", I've seen it happen in a country which too thought "it can't happen". And then it did. That's why Bill Gates is buying farmland and Black Rock is buying houses - they know what's coming. Worse yet, unlike Russian hyperinflation in the 90s (or Venezuelan today), this will be _global_.