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Look up Tesla’s debt compared to every other large auto company. They also don’t waste any money on advertising. They don’t have to deal with as many third par
by jliptzin 5y ago
Look up Tesla’s debt compared to every other large auto company.
They also don’t waste any money on advertising. They don’t have to deal with as many third party parts providers eating away at their profits. They’re not beholden to unions or dealer networks.
All that stuff is a serious drag on profitability and market cap. Just because they make cars doesn’t mean they have to have shitty margins and high debt like the other companies.
- hn_throwaway_99 5y ago> Look up Tesla’s debt compared to every other large auto company. That's key. Enterprise value is essentially debt + equity, and other car makers have much more debt than Tesla.
- paulpauper 5y agothis times 10x. Tesla saves considerable money by not having to advertise. Other brands have to spend billions a year to differentiate themselves, to stand out. Tesla is in a class of its own.