Re:Tesla Q3 2021 Earnings
by m0zg on Wednesday October 20, 2021 @05:02PM
(#28936553)
It'll be pretty spectacular when stagflation and recession finally hits in earnest. They are not immune, even though they, as a manufacturer of luxury goods, will fare better than most.
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Re:Tesla Q3 2021 Earnings
by rcMgD2BwE72F on Wednesday October 20, 2021 @05:18PM
(#28936783)
In recession, companies offering the most innovative products tends to speed up and quickly gain market shares. Also, Tesla is by far the car makers with the least debt and they can easily finance themselves. I wouldn't be in their competitors shoes: they aren't profitable with EV and they must keep their ICE business afloat (or die).
Stagflation will still hammer Tesla pretty bad. Think of what it'd do to their sales if Model S was $200K instead of $70K. We're headed in that direction. And before you say "it can't happen here", I've seen it happen in a country which too thought "it can't happen". And then it did. That's why Bill Gates is buying farmland and Black Rock is buying houses - they know what's coming. Worse yet, unlike Russian hyperinflation in the 90s (or Venezuelan today), this will be _global_.
> , Tesla is by far the car makers with the least debt
In stagflation, preexisting debt is a blessing.
^ HWR_14 knows what's up. I'm looking to borrow as much as I possibly can at the moment, as should any sane person with a good credit rating.
Borrow a dollar, return the equivalent of 10 cents 5 years later.