Will Tesla survive?

Amazon yrthd,$&4w
Jan 20, 2018 17 Comments

I keep seeing reports how Tesla is just burning through cash (billions!!). They apparently also have NEVER made a profit in their 10+ years of existence. This makes me wonder. Will they survive without being aquired?

I am not anti-Tesla... actually very much the opposite! I want them to survive on there own with out being aquired by a company like GM!

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TOP 17 Comments
  • HODL
    Jan 20, 20180
  • Facebook / Engwavvy
    How much profit is Amazon making? Tesla is going to be fine.
    Jan 20, 20180
  • Apple / Eng
    Marijuana

    AppleEng

    PRE
    Google
    BIO
    I ain’t got no worries.
    Marijuanamore
    Amazon didn’t make profits in many years either.

    These articles are designed for being clickbaity etc so people click and share it. Unless an article also provides the context, you can assume it’s not meant to be a fair portrayal.
    Jan 20, 20181
    • Amazon yrthd,$&4w
      OP
      Cool hope you are correct. I am not anti-Tesla... actually very much the opposite!
      Jan 20, 2018
  • Uber mjSo67
    Tesla will be a tremendous car business
    Jan 20, 20180
  • Apple Bnhjk56
    Crypto is worth $650Billion
    Jan 20, 20181
    • eBay trumpkin
      When Elon (Satoshi) cashes out his bitcoin, he can cover the losses at tesla.
      Jan 20, 2018
  • Palantir / EngBabadook
    If Tesla keeps making stupid cars like the model X they won’t survive. Anyone who thinks massive competition is not coming from BMW and others is naive
    Jan 20, 20180
  • Apple QLFh62
    It's a weird economy, where commercial companies loosing billions a year are valued at billions or more, and enjoy injection of billions of dollars from investors...

    Most likely, big investors see a potential in these companies - a potential to return their money with huge profit, after becoming monopolies and screwing other people and other businesses left and right. All that is covered by the slogan "to make this world a better place".
    Jan 20, 20180
  • Apple / Eng
    DEADBEEF🍻

    AppleEng

    PRE
    Microsoft
    DEADBEEF🍻more
    Amazon didn’t make a dollar in profit for nearly 20 years. HODL.
    Jan 20, 20180
  • PayPal / Other
    2ol8

    PayPalOther

    PRE
    Sony, TiVo
    2ol8more
    Many car makers will have their EVs on the market in one or two years and their EVs are competitive to Tesla’s in terms of the specs and design. On the other hand, I wonder if Tesla hits the production bottlenecks, why other EV makers will not have the same challenges that Tesla has today. If Tesla breaks the bottlenecks and gains the advantages from these learnings, these learnings then become trade secrets and IPs that other EV makers need to obtain to solve the problems that Tesla has today. My personal opinion is that Tesla has great potential to gain the advantages.
    Jan 20, 20180
  • Dell / Eng
    vokX18

    DellEng

    PRE
    Dell
    vokX18more
    From what I know, till 2016 tesla recognized the entire revenue 3 yrs after sales. They had a program where one could return the car after 3 yrs for 50k or something. You should start seeing deferred revenue moving to sales resulting in profit on income statement.
    Jan 20, 20183
    • Gen!x / Eng
      XPbr65

      Gen!xEng

      PRE
      Bank of America Merrill Lynch, HPE, Northrop Grumman
      BIO
      mehy
      XPbr65more
      I don’t know this to be accurate at all.

      Can you add a link where you read this?
      Jan 21, 2018
    • Dell / Eng
      vokX18

      DellEng

      PRE
      Dell
      vokX18more
      You can check at sec.gov
      Excerpt:
      Resale Value Guarantees and Other Financing Programs
      Vehicle sales to customers with a resale value guarantee
      We offered resale value guarantees or similar buy-back terms to all customers who purchase vehicles and who financed their vehicle through one of our specified commercial banking partners. Subsequent to June 30, 2016, this program is available only in certain international markets. Under this program, customers have the option of selling their vehicle back to us during the guarantee period for a determined resale value. Guarantee periods generally range from 36 to 39 months. Although we receive full payment for the vehicle sales price at the time of delivery, we are required to account for these transactions as operating leases. The amount of sale proceeds equal to the resale value guarantee is deferred until the guarantee expires or is exercised. The remaining sale proceeds are deferred and recognized on a straight-line basis over the stated guarantee period to automotive leasing revenue. The guarantee period expires at the earlier of the end of the guarantee period or the pay-off of the initial loan. We capitalize the cost of these vehicles on our Consolidated Balance Sheets as operating lease vehicles, net, and depreciate their value, less salvage value, to cost of automotive leasing revenue over the same period.
      Jan 21, 2018
    • Gen!x / Eng
      XPbr65

      Gen!xEng

      PRE
      Bank of America Merrill Lynch, HPE, Northrop Grumman
      BIO
      mehy
      XPbr65more
      Not to nitpick but there are large differences between your initial post and the excerpt.

      But yes, the initial post does have some basis in fact.
      Jan 21, 2018
  • Dell / Eng
    vokX18

    DellEng

    PRE
    Dell
    vokX18more
    For 2016---net loss is 773046, deferred revenue is 763126 and resale value guarantee is 179504 ( all in thousands).
    Jan 21, 20180
  • PayPal / Other
    2ol8

    PayPalOther

    PRE
    Sony, TiVo
    2ol8more
    Well, The reason why Amazon is not profitable is different than that of Tesla. Amazon chooses to not be a profit focused company. As long as they stay with that same principle, we will never see Amazon “profitable” on the numbers. https://www.theverge.com/platform/amp/2013/4/12/4217794/jeff-bezos-letter-amazon-investors-2012
    Jan 20, 20180

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