Quote:
Originally Posted by KRS_SN
Are you sure of profit
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Yes.
Quote:
Originally Posted by David70
No matter how you collect the money it still goes to the bottom line. It's non operational income not too far from selling off land or buildings to hit your numbers. Still money but not close to the same as building cars for profit.
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Corporations financial engineer to meet their needs and Zach is no exception - it's no coincidence 99% of companies beat expectations by 1¢ quarter after quarter; "profitably making cars" is red herring BS-talk nobody can answer fully except Tesla's CFO - everyone else is just making shit up.
Here's the best way to look at Tesla and what to watch:
• Tesla produced 179,757 vehicles in Q4 (
+71% Y/Y) and delivered 180,667 vehicles (
+61%)
• Tesla automotive gross margin came in at
24.1% vs.22.5% a year ago
• Tesla says the
Gigafactory Shanghai has the ability to sustain a run rate
at or above 250K Model 3s/year
• Tesla expects to achieve
50% average annual growth in vehicle deliveries over a multi-year horizon
• Tesla forecasts
semi deliveries to start this year
In short it's the Warren Buffett good business test: are they growing sales and shrinking costs? Yes!
No matter what the financial engineering says, unless they lie like BMW does, sales data and costs data will tell the tale.
And I think Tesla is going to get really challenged this year from the Germans - Tesla's future will be determined if:
(a.) They can keep growing despite the attacks *AND* keep up their customer satisfaction and re-ups (the highest in the biz right now)
(b.) The Germans lose on re-ups ... which is my guess. It'll play out like Apple iPhones and Nokia/Ericksson/Microsoft: Tesla will take an initial hit as customers try other options, then Tesla will boom as customers abandon other options and settle on the market/product leader.
For me though? Not thrilled with their offerings.