Tesla still an unprofitable automaker

[Twentyonepaylots]

The situation will definitely change as soon as Tesla establishes itself in the industry of cars. The company is fairly new, so it's not a surprise that they are employing multiple ways to keep the profits coming in while still delivering pristine and luxurious cars to the market, as they have advertised. As soon as Tesla reaches heights like those of Ford's or maybe BMW, their stock price will be justified by the profits they receive in creating cars.

[jaysabi]

The biggest thing holding back EVs right now is the lack of infrastructure as far as charging goes. There are two issues tackle there: 1) the lack of charging stations leading to "range anxiety" for drivers, and 2) the length of time it takes to recharge batteries.  One thing that really limits EV appeal to American drivers is the thought of being tied to tight limits on how far you can drive because you can't easily recharge your battery.  Assuming charging stations were as plentiful as gas stations, then you would have the issue of how long it takes to refuel the car, with the change being 2-3 minutes to 20-30 minutes under the best circumstances. Both of these are further considerations holding back EV adoption.

[Raytheon]

I've read that they're setting a standard and goal of making more cars every week.

Though I like Elon Musk for his interest in bitcoin and cryptocurrencies, I think he should pay more attention to Tesla.

Soon, they'll get into more competition while most of the known car brands will start getting into electric vehicles too. It might not be as quick as they enter in the competition but they'll also be gradually joining Tesla on the production of EVs.

You seem not fully read my post. In fact, there are already a lot of competition. Back in the old days, there were only Teslas and Nissan Leaf but Nissan Leaf was never a well-deserved competitor of Teslas. But now the game changed. Even in China, where Tesla set to expand its Giga Shanghai factory, competition is fierce either, with such competitors: BYD, Geely (Polestar) and BAIC. That's why I said Musk should pay more attention on Tesla's main business rather than buying Bitcoin and shilling Doge.

[bluebit25]

I see negative annual car sales, but they have other revenues to make up for this business. The revenue from carbon credit gives them a lot of money to just pay and research and develop other fields. As for tesla cars, I think it will be difficult for them to compete with other brands, since the minds of people are still not accepted by many.

[jaysabi]

I've read that they're setting a standard and goal of making more cars every week.

Though I like Elon Musk for his interest in bitcoin and cryptocurrencies, I think he should pay more attention to Tesla.

Soon, they'll get into more competition while most of the known car brands will start getting into electric vehicles too. It might not be as quick as they enter in the competition but they'll also be gradually joining Tesla on the production of EVs.

You seem not fully read my post. In fact, there are already a lot of competition. Back in the old days, there were only Teslas and Nissan Leaf but Nissan Leaf was never a well-deserved competitor of Teslas. But now the game changed. Even in China, where Tesla set to expand its Giga Shanghai factory, competition is fierce either, with such competitors: BYD, Geely (Polestar) and BAIC. That's why I said Musk should pay more attention on Tesla's main business rather than buying Bitcoin and shilling Doge.

Tesla definitely needs to focus. It's not even the market leader in China for EVs.  So far in 2021, Tesla has sold 52.8k Model 3s, but the market leader has sold nearly double that- 96.6k Wuling HongGuang Mini EVs.  (https://insideevs.com/news/503350/china-plugin-sales-march-2021/)  No doubt these cars are vastly different, but every EV sold by a competitor is a sale Tesla has 0% chance of making.

[slapper]

Investors invest their money in Tesla because they anticipate that in the future, Tesla will become dominant in producing electric cars. In addition, Elon Musk is believed to change the world on an enormous scale. Thus, being not profitable does not mean that they will not succeed. Observe bitcoin for yourself, many people who bought bitcoin at $10000 refuse to hold it, but others, remain silent and keep collecting bitcoin for a long period of time and at the moment, they are in the depth of joy

[Kong Hey Pakboy]

I see negative annual car sales, but they have other revenues to make up for this business. The revenue from carbon credit gives them a lot of money to just pay and research and develop other fields. As for tesla cars, I think it will be difficult for them to compete with other brands, since the minds of people are still not accepted by many.

Not enough to behonest, plus I am pretty sure that they will bounce back once their cars become less expensive, I think that it is the only thing that is keeping them from getting a lot of sales, their cars are expensive because it is is an electric car, maybe if the government put some sort of incentive for owning an electric car, they might be able to see some big jump in sales.

[so98nn]

With the over-whelming response for the Tesla products it looks like we have a steal deal which will go up slowly! The product is launched at the wrong time, I mean the covid situation has engulfed most of the market for the Tesla or any other automobile industry. I am pretty confident that Tesla's will be raoming throughout the world real soon when the market re-opens. Tesla's new production in India can be call out for the biggest deal possible. However, considering the current hardship of India in the view of covid the operations are too slow.

Tesla have not even entered the global market. Once that car starts roaming everywhere it will show us how profitable the company is.
So the best advice would be buying the shares today so that after couple of years when things will be slit, we can see nice up surge for the same.

[paxmao]

The race here is Tesla against the traditional auto industry. It is clear that the tradicional makers are now swapping quickly to the EV, however they have the burden of their old assets and production means along with the intelectual property that was serving as a moat for them an is no longer useful for electric cars. This is all about how Tesla manages to use it advantages including exclusive dedication to EV, intelectual property and patents, etc... versus how fast are the traditional in switching , and how efficient at creating new defensive moats in the industry.

[ashmodeus]

its still beginning i guess, according to this chart , Tesla turned a full-year profit for the first time on record in 2020 , there was never any profit before that, well , expensive price for a single cars probably make this car hard to buying for general people like me , and also like tax etc , but well , it's only a matter of time before there is no more gas to dig up.

[livingfree]

I've read that they're setting a standard and goal of making more cars every week.

Though I like Elon Musk for his interest in bitcoin and cryptocurrencies, I think he should pay more attention to Tesla.

Soon, they'll get into more competition while most of the known car brands will start getting into electric vehicles too. It might not be as quick as they enter in the competition but they'll also be gradually joining Tesla on the production of EVs.

You seem not fully read my post. In fact, there are already a lot of competition. Back in the old days, there were only Teslas and Nissan Leaf but Nissan Leaf was never a well-deserved competitor of Teslas. But now the game changed. Even in China, where Tesla set to expand its Giga Shanghai factory, competition is fierce either, with such competitors: BYD, Geely (Polestar) and BAIC. That's why I said Musk should pay more attention on Tesla's main business rather than buying Bitcoin and shilling Doge.

I understand your post about him focusing to Tesla. The other competition that I've mentioned aren't those brands that you have mentioned but the other Japanese brands like Toyota and Honda.

I've just read the news that they're be going to focus in EV soon but it will take time. But you're right that as early as now, he should be focusing with Tesla and dominate its market.

But he's a guy that has a lot of time to do things, he even has his SpaceX.

[bryant.coleman]

For Tesla, the main issue is that they are unable to make any improvement to their current battery technology. Their batteries are too expensive (contributes to almost 50% of the total cost of the vehicle), too heavy (which affects the performance) and needs to be replaced every 5-6 years. They have a better version available with them, which is more efficient and long lasting. But this version has failed during safety tests. So for the foreseeable future, they are stuck with the current Ni-Co-Al battery technology.

[Hydrogen]

Tesla is still an unprofitable automobile manufacturer.

....

Chip Shortage Continues to Wreak Havoc on New Car Production

General Motors believes that this problem could account for a global unit shortage of 216,000 vehicles, as reported by Reuters, which would equate to as much as $2 billion in lost profits. Similarly, Ford indicated in February that the lack of chips was estimated to cut into profits as deep as $2.5 billion by forcing manuacturing reductions by up to 20 percent. In its quarterly financial report, Stellantis did not comment on the losses it expected (if any) from the shortage, calling it a "big unknown."

https://www.thedrive.com/news/39619/chip-shortage-continues-to-wreak-havoc-on-new-car-production

Parts shortages forced tesla to shutter factories and cease car production.

Tesla Shut Down Fremont Factory Temporarily Over Parts Shortages, Musk Confirms

2/26/2021

https://www.msn.com/en-us/money/news/tesla-shut-down-fremont-factory-temporarily-over-parts-shortages-musk-confirms/ar-BB1e1LDn

That played a key role in tesla failing to be profitable.

[Vishnu.Reang]

^^^^ So any idea when this chip shortage issue will be resolved? I have seen a few posts in social media, which claims that the shortfall in supply is going to persist for a few more months. Also, I have seen a statement from Taiwan Semiconductor Manufacturing Corporation (world's largest producer of chips?), which claims that they have stepped up their production. However, supply chain issues remain for the chip manufacturers in Taiwan.

[Hydrogen]

^^^^ So any idea when this chip shortage issue will be resolved? I have seen a few posts in social media, which claims that the shortfall in supply is going to persist for a few more months. Also, I have seen a statement from Taiwan Semiconductor Manufacturing Corporation (world's largest producer of chips?), which claims that they have stepped up their production. However, supply chain issues remain for the chip manufacturers in Taiwan.

IMO circumstances behind parts shortages are entirely political.

They're not a natural result of market mechanics, supply chains or any normal shortfall.

In the past when the media offered false explanations for events like this. Many immediately saw through it.

It shows the growth and evolution of how information is disseminated. Now they're offering no explanation or information at all. The few explanations I've seen offered were so horrible/laughable I think people will realize something strange is happening. If they haven't already.

Chinese Manufacturers Begin Production of Cryptocurrency Mining Dedicated SSDs As Chia Coin Gains Popularity

The rise in popularity of Chia Coin, a brand new cryptocurrency, is expected to cause major SSD & HDD shortages around the globe, as we reported yesterday.

Given the increasing demand for SSD and high-performance storage devices, Chinese manufacturers have commenced production of mining dedicated SSDs which should be hitting retail soon.

https://wccftech.com/dedicated-cryptocurrency-mining-ssds-in-production-chia-coin-rise/

[chaoscoinz]

Tesla is too futuristic for the average consumer and also to expensive. The average Joe can't afford a Tesla, let alone have a place to plug her in at night. The Tesla is a luxury vehicle and let's not forget that we are indeed within Pandemic that kind of puts things into a recession. I believe that when the economies around the globe star to pick up after the pandemic starts to fade, and we return to normal
 (what ever the new normal is, off course). I have faith in Musk, he is really ballsy, that podcast that he did with Rogan where he was fried from all the kush, he won me over that day. It even lost him investors, but gained him some new fans, especially since he's pro Bitcoin!

Don't count Musk and Tesla out,  I'm calling it first, With Musk's Bitcoin purchases , Tesla is set to become the next Weyland yutani corporation (minus teh zenomorphs)

[bluebit25]

I see negative annual car sales, but they have other revenues to make up for this business. The revenue from carbon credit gives them a lot of money to just pay and research and develop other fields. As for tesla cars, I think it will be difficult for them to compete with other brands, since the minds of people are still not accepted by many.

Not enough to behonest, plus I am pretty sure that they will bounce back once their cars become less expensive, I think that it is the only thing that is keeping them from getting a lot of sales, their cars are expensive because it is is an electric car, maybe if the government put some sort of incentive for owning an electric car, they might be able to see some big jump in sales.

So do you think if the famous car manufacturers in the world also switch to electric cars, I still keep the view that they are just ushering in a new era in the auto industry but I don't think sales will increase if more encouraged.

[cabron]

In the current economy, is no wonder every business is unprofitable. Small and big businesses are not profiting because every one since 2020 experienced the money problem up to this day, so why would someone who sees the future is very uncertain buy Tesla cars. Not everyone can afford it too.

The Dogefather knew it will happen so he turns his head to BTC after all he had already made money through BTC before 2017. Now he is making more money in pumping Doge.

[magneto]

I honestly don't understand why people valuate Tesla at such high levels.

It virtually makes no sense. People are essentially pricing in decades worth of earnings growth into an unprofitable company. Automakers that have been making profits for decades, like BMW and Mercedes, are somehow outpriced in terms of market cap.

A 50 P/E ratio is considered to be bubble territory. Tesla currently has a four digit P/E of 1,100. Think about that.

[Sithara007]

I honestly don't understand why people valuate Tesla at such high levels.

It virtually makes no sense. People are essentially pricing in decades worth of earnings growth into an unprofitable company. Automakers that have been making profits for decades, like BMW and Mercedes, are somehow outpriced in terms of market cap.

A 50 P/E ratio is considered to be bubble territory. Tesla currently has a four digit P/E of 1,100. Think about that.

I agree that Tesla may be a bit overvalued, but P/E may be a wrong parameter to look at. During the early days, many of the multi-trillion corporations of today (such as Microsoft, Yahoo and Amazon) had a P/E of more than 1,000. Many of these corporations had an operating loss, so in most cases there was no P/E to start with. Tesla is having an operating profit (although small) and therefore it is possible to calculate the P/E. We should be rather looking in to the yearly sales and growth percentage.