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RE: Tesla Model 3: The Beginning of the End of Gasoline Cars?
I'm concerned that Tesla loses massive amounts of money on all fronts. It's not a business so much as a taxpayer-subsidy funded research and development group.
Tesla loses money everyday with no end in sight. The stock should be worth a lot less, I think. I hope it all works out as a loss-leader in the end.
That might be a problem in the short term but companies have come out of even more dire situations than this. Also, I don't know where I read this, but I read that "experts" believe it will be one of the most valuable companies in just 5 years.
Indeed.
I presume that by "Valuable" they mean market cap, which these days seems to be somewhat divorced from actual profitability. Earnings per share numbers are starting to look a little nuts imo.
Thanks for posting!
While both I and Musk agree with your statement below about the market cap being crazy, the "taxpayer-subsidy" statement is a bit trite. Telsa is nearly entirely funded on revenue and shareholder investment. Their position would be mostly unchanged without tax incentives, unlike the heavily-subsidized and yet insanely profitable oil industry.