Message Font: Serif | Sans-Serif
No. of Recommendations: 2
" I don't think Tesla is foregoing profit today for growth tomorrow - because it's not funding growth through foregone profits, but entirely through tapping the capital markets. It's doing something fundamentally different than what Amazon was doing at this point in its history (2005 or 2009, depending on how you measure). They're not profitable on an operating basis the way Amazon was, and unprofitable just because they were funding growth - and that's not using a "narrow definition," but a huge difference between the companies' positions."

Actually, Tesla isn't even forgoing profits today in order to fund tomorrow. They are doing worse. They are doing the opposite. They are borrowing from tomorrow's potential (cash flow) profits in order to make it through today. Whenever they announce a new vaporware vehicle and require their suckers, er I mean customers to put down a deposit, they are using cash from future sales to fund the company and ongoing operations.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.