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? Tesla just posted another quarter with billions in profits. The Model 3 is in the top ten selling cars, globally. They’re still selling far more than they can

? Tesla just posted another quarter with billions in profits. The Model 3 is in the top ten selling cars, globally. They’re still selling far more than they can make.

jjeaff 4y ago
Would they be posting billions in profits without subsidies? My understanding is that for several years, they were only profitable because they were selling fuel efficiency credits to Ford and GM so they could continue selling tons of trucks and SUVs. But those subsidies are going to be phased out and there will also be less demand for them as the big makers sell more EVs.
- panick21_ 4y ago
  > Would they be posting billions in profits without subsidies? Yes. You information is very out of date. Its the information that Tesla critics had to fall back to once they became profitable. To anybody with even minimal understanding of the buissness knew that this was just temporary and Tesla was heading toward profitability very fast. But for a few quarters one could right good articles saying 'only profitable because credits'. This has been over for a while, fuel credits have dropped of a huge amount and every quarter they are a fall smaller part of revenue. > My understanding is that for several years, they were only profitable because they were selling fuel efficiency credits First of all, fuel credits are not subsidies. They are punishment for companies that don't comply to regulation. > But those subsidies are going to be phased out and there will also be less demand for them as the big makers sell more EVs. Tesla has not received the tax subsidies for many years now. Those Subsidies getting removed would actually benefit Tesla. Fuel credits will not be phased out, in fact they might increase more in the future. And they will continue to exist in Europe as well. People that since 2014 have been arguing that fuel credits are almost gone because every company is gone do EV soon have miscalculated. Fuel credits are gone continue to be a part of the story for EV companies but as Tesla continues to grow its an ever smaller part. Tesla has industry leading operational margin will growing around 50% YoY.

? Tesla just posted another quarter with billions in profits. The Model 3 is in the top ten selling cars, globally. They’re still selling far more than they can make.

jjeaff 4y ago

Would they be posting billions in profits without subsidies? My understanding is that for several years, they were only profitable because they were selling fuel efficiency credits to Ford and GM so they could continue selling tons of trucks and SUVs. But those subsidies are going to be phased out and there will also be less demand for them as the big makers sell more EVs.

panick21_ 4y ago
> Would they be posting billions in profits without subsidies? Yes. You information is very out of date. Its the information that Tesla critics had to fall back to once they became profitable. To anybody with even minimal understanding of the buissness knew that this was just temporary and Tesla was heading toward profitability very fast. But for a few quarters one could right good articles saying 'only profitable because credits'. This has been over for a while, fuel credits have dropped of a huge amount and every quarter they are a fall smaller part of revenue. > My understanding is that for several years, they were only profitable because they were selling fuel efficiency credits First of all, fuel credits are not subsidies. They are punishment for companies that don't comply to regulation. > But those subsidies are going to be phased out and there will also be less demand for them as the big makers sell more EVs. Tesla has not received the tax subsidies for many years now. Those Subsidies getting removed would actually benefit Tesla. Fuel credits will not be phased out, in fact they might increase more in the future. And they will continue to exist in Europe as well. People that since 2014 have been arguing that fuel credits are almost gone because every company is gone do EV soon have miscalculated. Fuel credits are gone continue to be a part of the story for EV companies but as Tesla continues to grow its an ever smaller part. Tesla has industry leading operational margin will growing around 50% YoY.