Stock Market: What Happens If Tesla Enters S&P 500

Re:Stock Market: What Happens If Tesla Enters S&P 500 by throw0101a on Saturday August 01, 2020 @03:37PM (#24023246)

An observation someone made before the recent Q2 results were announced:

> They will almost certainly make a profit [this quarter]. Last year they lost $400 MM in Q2. This year they sold almost exactly the same number of cars. They sold them at lower prices. They operated two car factories instead of one, which drives up fixed costs. There is no reason they should genuinely do better this year than last. But, since we are all willing to be blind to this obvious book cooking, they will, for sure, announce a profit.

* https://www.thebeartrapsreport.com/blog/2020/07/19/gaming-th...

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Re:Stock Market: What Happens If Tesla Enters S&P 500 by simonebrunozzi on Saturday August 01, 2020 @03:40PM (#24023276)

I think "book cooking" is a bit exaggerated.

They received a larger amount of government incentives, and more cars sold means more software sold (autopilot, etc), which has huge margins.

That's, in my humble view, the main reason why they managed to make a profit, despite the larger capex you have mentioned.

I'm not a Tesla fanboy but I have to admit that, besides the currently hyped stock price, I think it's a company that will do well in the long run.

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