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I don't understand co.ments like this. Clearly they realized that it wasn't worth doing and cut costs accordingly. This seems smart. Companies constantly place

I don't understand co.ments like this. Clearly they realized that it wasn't worth doing and cut costs accordingly. This seems smart. Companies constantly place bets and adapt when they aren't working out. As far as the ship sinking that's pretty silly. They continue to be profitable with some sectors like energy growing very quickly. Virtually all EV makers have faced a couple of tough years. Many like Rivian and lucid are getting clobbered. Tesla has a 37 billion dollar bank account and low debt. There is no scenario that the ship is sinking

TheAlchemist 1y ago
What I'm pointing to is the absurdity of the situation. It was supposed to be a huge project, valued by some analysts at $600 billions, and years in the making. The CEO himself self recently they are on track to bring it online next year at a huge scale. 2 weeks ago he was still saying it, now it's axed. It was clearly nowhere near where they said it was, or they would have some significant sunk costs and write downs. None of which exist in their financial statements for Dojo. As for the ship sinking - I know it seems like a huge exaggeration now. But it's a car maker, with a collapsing sales and which made virtually all the profits from direct and indirect subsides - which just got axed too. That alone would be very worrying. But it's also a company which sold billions of $ of software that is still not working as advertised and lawsuit are only starting to come in. By their own admission the software won't work on >50% of cars they already sold and they would need to upgrade them 'sometime in the future'. Oh and the CEO is the most hated man in the US currently.
- DoesntMatter22 1y ago
  In 2023 their profit was 15 billion dollars. Of that they got 1.79 billion in regulatory credits. So about 12%. They also made over 15 billion in 2024 of which regulatory credits were 2.7 billion, about %18%. So your claim seems false. https://ycharts.com/indicators/tesla_inc_tsla_automotive_regulatory_credits_revenue https://ycharts.com/indicators/tesla_inc_tsla_automotive_reg... https://finance.yahoo.com/quote/TSLA/financials/ https://finance.yahoo.com/quote/TSLA/financials/
  - TheAlchemist 1y ago
    Here is an overview of the impact of direct regulatory credits: https://edition.cnn.com/2025/07/22/business/tesla-regulatory-credit-sales-revenue https://edition.cnn.com/2025/07/22/business/tesla-regulatory... Overall, Tesla got >$10B of free profit from direct regulatory credit sales over its lifetime. Indirect ones (7500$ subsides to car buyers) are going away end of September. While it's not a direct benefit to Tesla, it was a huge boost to sales and profits.
    - DoesntMatter22 1y ago
      Tons of industries and companies get huge boosts from the government, and that's true for all the other EV manufacturers as well. You said Tesla gets "Virtually all their profits" from regulatory credits. Tesla has made 45 billion in profit since 2021. Even if they took in 10 billion in regulatory credits that is less than 1/4th of their profit just since 2021. So not exactly a truthful statement when you say "Virtually all their profits"
      - TheAlchemist 1y ago
        That's why I said 'direct and indirect'. Tesla benefited hugely from subsides for buying electric cars (I'm not disputing whether it's just or not - they were the only real ev maker in the US until recently) and those are getting cut off very soon. Let's see how profitable their car sales are in Q4.
        DoesntMatter22 1y ago
        No question they benefited from it, they wouldn't have grown nearly as quickly. Regardless though your statement that virtually all their profit being from subsidies is just factually incorrect. I definitely think it will hurt US sales somewhat, however it's going to drive the other EV makers in the US into the tank. Most are still hemorrhaging money on their EV's. Tesla can just drop their production amount if sales fall off. The US market is less than half their sales. We shall see.
AtlasBarfed 1y ago
"they continue to be profitable" The credits are drying up, the sales crashed, the brand is dead, and there's only so many mark-to-market accounting you can do on cryptocurrency. If the stock wasn't buoyed by some bizarre modern financial techno cult, I'd short it
- DoesntMatter22 1y ago
  Sales are down modestly compared to Rivian and Ford which are getting crushed YoY. Brand is fine, in June they were the best selling EV in Europe. Energy continues to grow fast and there are a lot of exciting products in the pipeline

TheAlchemist 1y ago

What I'm pointing to is the absurdity of the situation. It was supposed to be a huge project, valued by some analysts at $600 billions, and years in the making. The CEO himself self recently they are on track to bring it online next year at a huge scale. 2 weeks ago he was still saying it, now it's axed. It was clearly nowhere near where they said it was, or they would have some significant sunk costs and write downs. None of which exist in their financial statements for Dojo. As for the ship sinking - I know it seems like a huge exaggeration now. But it's a car maker, with a collapsing sales and which made virtually all the profits from direct and indirect subsides - which just got axed too. That alone would be very worrying. But it's also a company which sold billions of $ of software that is still not working as advertised and lawsuit are only starting to come in. By their own admission the software won't work on >50% of cars they already sold and they would need to upgrade them 'sometime in the future'. Oh and the CEO is the most hated man in the US currently.

DoesntMatter22 1y ago
In 2023 their profit was 15 billion dollars. Of that they got 1.79 billion in regulatory credits. So about 12%. They also made over 15 billion in 2024 of which regulatory credits were 2.7 billion, about %18%. So your claim seems false. https://ycharts.com/indicators/tesla_inc_tsla_automotive_regulatory_credits_revenue https://ycharts.com/indicators/tesla_inc_tsla_automotive_reg... https://finance.yahoo.com/quote/TSLA/financials/ https://finance.yahoo.com/quote/TSLA/financials/
- TheAlchemist 1y ago
  Here is an overview of the impact of direct regulatory credits: https://edition.cnn.com/2025/07/22/business/tesla-regulatory-credit-sales-revenue https://edition.cnn.com/2025/07/22/business/tesla-regulatory... Overall, Tesla got >$10B of free profit from direct regulatory credit sales over its lifetime. Indirect ones (7500$ subsides to car buyers) are going away end of September. While it's not a direct benefit to Tesla, it was a huge boost to sales and profits.
  - DoesntMatter22 1y ago
    Tons of industries and companies get huge boosts from the government, and that's true for all the other EV manufacturers as well. You said Tesla gets "Virtually all their profits" from regulatory credits. Tesla has made 45 billion in profit since 2021. Even if they took in 10 billion in regulatory credits that is less than 1/4th of their profit just since 2021. So not exactly a truthful statement when you say "Virtually all their profits"
    - TheAlchemist 1y ago
      That's why I said 'direct and indirect'. Tesla benefited hugely from subsides for buying electric cars (I'm not disputing whether it's just or not - they were the only real ev maker in the US until recently) and those are getting cut off very soon. Let's see how profitable their car sales are in Q4.
      - DoesntMatter22 1y ago
        No question they benefited from it, they wouldn't have grown nearly as quickly. Regardless though your statement that virtually all their profit being from subsidies is just factually incorrect. I definitely think it will hurt US sales somewhat, however it's going to drive the other EV makers in the US into the tank. Most are still hemorrhaging money on their EV's. Tesla can just drop their production amount if sales fall off. The US market is less than half their sales. We shall see.

AtlasBarfed 1y ago

"they continue to be profitable" The credits are drying up, the sales crashed, the brand is dead, and there's only so many mark-to-market accounting you can do on cryptocurrency. If the stock wasn't buoyed by some bizarre modern financial techno cult, I'd short it

DoesntMatter22 1y ago
Sales are down modestly compared to Rivian and Ford which are getting crushed YoY. Brand is fine, in June they were the best selling EV in Europe. Energy continues to grow fast and there are a lot of exciting products in the pipeline