They could make lots of profits if they weren't growing 30-50% a year reinvesting massively, paying massive bonus to Musk that he only gets based on massive growth.
They have 18+ billion of cash on balance and could easily raise much more if they needed too.
They have upper tier operational margin and extremely good per unit margin.
> EVs are commodities.
EV are only 2% of global vehicle sales and Tesla is clearly the leader and is growing very fast still.
Go actually read about the limited availability of lithium, nickel and chemical processing. Not that there is not enough in the ground but scaling the supply chain to 100% EV will be massively challenging and that is before you even get into cell manufacturing.
> their profit is entirely due to credits?
I really don't understand why people are so utterly obsessed with this one part of Tesla income stream. Their margin are all clearly still fine and their growth is amazing even if you subtract profits.
Sure in the last couple quarter if you assume no credits at all then Tesla would just be an amazing growth company that doesn't make a profit but it wouldn't actually fundamentally change the bull case for Tesla all that much.
Tesla is by a huge margin the dominate EV player in US, EU and China by revenue generated while they have good margin (other car makers don't break out their margin for their EV business btw) and there is no evidence what so ever that their growth will stop, there is actually a huge amount of evidence that the opposite is the case.
I know some people don't like Tesla, that fine but people who still treat Tesla like this tiny startup that is just about to go bust unless they deliver on some feature X is simply not the case.
They could make lots of profits if they weren't growing 30-50% a year reinvesting massively, paying massive bonus to Musk that he only gets based on massive growth.
They have 18+ billion of cash on balance and could easily raise much more if they needed too.
They have upper tier operational margin and extremely good per unit margin.
> EVs are commodities.
EV are only 2% of global vehicle sales and Tesla is clearly the leader and is growing very fast still.
Go actually read about the limited availability of lithium, nickel and chemical processing. Not that there is not enough in the ground but scaling the supply chain to 100% EV will be massively challenging and that is before you even get into cell manufacturing.
> their profit is entirely due to credits?
I really don't understand why people are so utterly obsessed with this one part of Tesla income stream. Their margin are all clearly still fine and their growth is amazing even if you subtract profits.
Sure in the last couple quarter if you assume no credits at all then Tesla would just be an amazing growth company that doesn't make a profit but it wouldn't actually fundamentally change the bull case for Tesla all that much.
Tesla is by a huge margin the dominate EV player in US, EU and China by revenue generated while they have good margin (other car makers don't break out their margin for their EV business btw) and there is no evidence what so ever that their growth will stop, there is actually a huge amount of evidence that the opposite is the case.
I know some people don't like Tesla, that fine but people who still treat Tesla like this tiny startup that is just about to go bust unless they deliver on some feature X is simply not the case.