Quote:
Originally Posted by Simply Red
Tesla is going out of business. They've already announced it - I didn't read the whole thread - but it's all over the web.
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Yeah. It's terrible reading the incredibly biased and I'll informed opinions of the Wall Street power brokers. Literally 9 of every 10 stories that come across the wire are negative. Give no credit for 100X growth over 5 yrs, or forcing the entire auto industry to admit defeat and invoke plans tho electrify their entire fleets by 2020.
Truth is, traditional auto makers see profit margins of around 5-7% on moist all offerings outside of trucks. Tesla enjoys 25% margins, and expect to replicate that with the Model 3.
"If they really have high margins, then why do they lose money every quarter?". Henry Ford lost bookoo bucks pouring together the supply chain for the Model T, but it had to be built in order to achieve his vision. Tesla is growing at a faster rate than Ford did btw.
Fact is, if Tesla wanted to be profitable, they would just need to stop growing. That's be fine, if you're fine with producing 100,000 cars a year, but that doesn't really move the needle does it?