Quote:
Originally Posted by GregWeld
Having said all of that - and being in complete agreement..... You MUST ask yourself how long a company can continue losing huge money every quarter - while still trying to build new models etc. Of course - a large part of their losses are because they are "investing" in new plant and equipment etc. So perhaps like AMAZON (AMZN) losing money - it's not really losses as much as it is supporting growth and expansion. I'm not that smart - and don't care to pour thru their financial statements to figure it all out!
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They have a decent gross profit per model, just not producing the volume they need to outrun the spending on development and growth. They are selling their powerwall home battery systems faster than they can produce them, and they have 276,000+ pre orders for the car they are releasing next year. Now 2016 Q1 they delivered 14,820 cars. They fell short of their Q1 estimate because of parts shortages. The logistics of expanding from 5,000 cars per month to 50,000 cars per month is staggering. The $276,000,000 their customers fronted them will not do it. They need real cash and logistics experts. Someone like a big 3, or maybe a company like Boeing that is accustomed to large scale short timeline projects. The way Tesla has run the company from the beginning I have always had the impression they were fishing for a buyer.