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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Replying to @librab103 @JeffreyHiggins
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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Replying to @AustenAllred @JeffreyHiggins
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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Replying to @AustenAllred @JeffreyHiggins
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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Replying to @librab103 @JeffreyHiggins
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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Replying to @AustenAllred @JeffreyHiggins
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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Tesla margins are not the same as other car manufactures. Do not let Tesla math fool you. Everybody questions the way that Tesla comes up with its gross margin. Tesla sale volume has platitude the last 4 quarters. Not a good sign.
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Replying to @librab103 @JeffreyHiggins
That's simply not true. If you remove capex and R&D Tesla has the same (or better) margins than almost everyone else. The only reason their margins suck is because they invest so much.pic.twitter.com/pybv3sgUfZ
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Replying to @AustenAllred @JeffreyHiggins
Like I said. You can keep beleive the fuzzy math Tesla uses to come up with its gross margins. At the end of the day it is losing more and more money each quarter.
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Do you understand why though? It's not fuzzy math.
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