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Tesla isn't an auto manufacturer. It just so happens that cars are the things it uses to bootstrap the business.
by unsupp0rted 2y ago
Tesla isn't an auto manufacturer. It just so happens that cars are the things it uses to bootstrap the business.
- Tadpole9181 2y agoSince they almost exclusively make money from auto sales and have never had substantial income from anything else, I sure do think they are an auto company.
- unsupp0rted 2y agoThey’re still not an auto company. A lot of tech companies make no money at all for the first years or even a decade of their existence. This one decided to make some money, giving themselves a longer runway to do very hard things (like building gigantic automated factories that can build automated things that can build automated things). You’re right that a company that sells cars is a car company. But investors tend to invest in future prospects, and Tesla’s future is not as a car company. The adage goes, “you can be right or you can be rich”. I’m not saying Tesla will succeed or even that it’s a good bet. I’m saying there’s a valid investment thesis that posits P/E for Tesla is a poor metric.