Re:Jaguar and Audi SUVs Fail to Dent Tesla’s Electric-Car Do...
by psychrometer on Monday August 19, 2019 @01:31PM
(#20739775)
Tesla makes a profit on every car that they sell[0].
There are more people wanting to buy Tesla's than they can currently produce[1].
Telsa needs to spend more money to increase production. They make money on each car sold and they can sell a lot more than they currently do. Tesla being in the red in order to increase production is the same scenario that Amazon was in.
[0] https://www.fool.com/investing/2019/07/26/tesla-management-t...
[1] https://electrek.co/2018/07/03/tesla-model-3-long-backlog-re...
Re:Jaguar and Audi SUVs Fail to Dent Tesla’s Electric-Car Do...
by amyjess on Monday August 19, 2019 @12:00PM
(#20738906)
Specifically, Amazon was cash-flow positive but deliberately chose to reinvest all their profits into the company instead of paying out dividends, so that appears on the books as a loss but it really isn't.
Whereas Tesla does indeed have some systemic financial issues.
In other words Amazon could have been "profitable" on a GAAP accounting basis fairly early on, but Tesla would struggle to do that.