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RE: BEEEEEYOND STUUUUUPID!!!!!!!!
Of course losing money can work if you are reinvesting in your brand and product- see for example how long amazon went while in the red, building their empire. it's not like MUSK doesn't know how to make money. But I am still skeptical, especially about Mars
Yes, Amazon did lose money but they sold so many products.
They also had the potential to sell so many more products than Tesla does.
AMZN was and is the leader and pretty much sole player in selling anything and everything at competitive prices.
I buy something almost daily from AMZN.
I did consider your point and it did concern me.
I did the best case math though and it confirmed my conviction.
Even if the sold 300,000 cars which is a big number they’d only cover some of their debt.
Their margin is around 12%.
That’s about 5k per model 3 if it truly gets anywhere near 35k promised price.
That’d be 300 million in profit per quarter.
They lost over 700 million and they creatively carried over a billion in expenses to this 1st quarter.
Porsche has a 300 mike battery car coming out as does Jaguar and soon Mercedes.
They’d have to take over half the car market to turn a profit.
They also have convertible bond debt from Solar City.
There old bonds are coming due and their debt is only increasing.
They can’t make any money best case for one year at which time Porsche and Mercedes and probably Bently and Ferrari will put their names in the cap.
I love what Musk did for the world made us believe solar energy could run our vehicles but unfortunately good guys fail sometimes too.
Instead of facing the music, he’s begun to lie and mislead investors. He’s even clearly manipulating the stock price with far fetched future plans, like colonizing Mars...
A good man with a great idea for the future went sour and unfortunately the stock going to zero is just one end coming.
If he keeps lying he’ll go to jail.
I’m already concerned that he’s committed accounting fraud.
This billion dollar carry over is just another red flag that makes me think jail time is in the future for a guy who could have helped society by perhaps consulting for other companies that have the ability to make money.