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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Replying to @librab103 @JeffreyHiggins
Answer me this: If Tesla weren't producing the Model 3, what would its income statement look like?
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Replying to @AustenAllred @JeffreyHiggins
Who knows. I go on what a company is doing not what it could have done. I believe Tesla could be a profitable company. The first thing is to get rid of Musk.
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Replying to @librab103 @JeffreyHiggins
You need to understand that money isn't being wasted, it's being put into something that will bring even higher revenues down the road. They're not burning cash, they're investing it.
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Replying to @AustenAllred @JeffreyHiggins
I guess you misread the bloomberg article that came out today?
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Didn't read it. Did it say that Tesla is investing 10x as much money as other companies? Because that's what's happening.
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Replying to @AustenAllred @JeffreyHiggins
Investing money means nothing if you are not getting anything in return.
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