Do people really think Tesla will actually just run out of money? In this market? The stock could get hammered, sure, but actually not be able to raise funds and go out of business?
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Tesla has been producing cars since 2008 and only has posted profits twice since going public in 2010. The more they sell the more they lose. Clearly Tesla has the wrong business model
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That's because they invest more than they bring in, not because they couldn't make money just selling model Ss
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You mean profit and most people believe that could be true but a company doesn't sell the same product indefinitely at the same price and think it can stay profitable.
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Can we stop comparing Tesla to companies like Amazon, Apple, Google? It is a car manufacturer that so it needs to be compared to Ford, GM, Toyota, etc.
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It's the point you're missing. If a company is unprofitable only because they're dumping a ton of cash into R&D you should look at it differently. Tesla's margins are the same as Ford, GM, Toyota, etc, they're just investing more.
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It goes beyond R&D. Musk spent $3B to bail SolarCity. Spends millions a year servicing people's cars because he gave them ludicrous warranties. Spends millions on producing cars that sit in a lot. Tesla is not a sound business.
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Answer me this: If Tesla weren't producing the Model 3, what would its income statement look like?
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