Model 3 production reaches 5000 last week!

I think he is referring to the year being 2018 instead of 2017.

 

Bob Wilson

 

looks right to me.

 

Second time’s the charm.

 

Does the year make a difference? No profit is all that counts.

 

if they are going to make a profit, it should be in the next couple years. i would keep my position if i owned any stock, maybe buy on the lows.

 

not at all, i was only speaking for myself. thus the 'i'.

 

Okay, let's compare Amazon (AMZN Cash Flow | Amazon.com, Inc. Stock - Yahoo Finance):


To Tesla (TSLA Cash Flow | Tesla, Inc. Stock - Yahoo Finance):


Amazon is reinvesting its profits into the business, and doesn't need external sources of money. Tesla doesn't have profits from operations, so it must raise capital to invest into the business.

 

I suspect the reference to Amazon was in its early years.

That said, I will cross post this here as it is so on target.

 

what ramifications would a massive 2008 type stock market drop have?

 

Good video, especially since it confirms what I said. Tesla will continue to depend on investors to pour cash into the business until such time as they generate their own cash from operations. Cash can be thought of as a runway. If the business doesn't take off before it reaches the end, you either need more runway quickly, or you'll crash horribly.

Most (all?) companies start out this way. Comparing Tesla to a successful company in its "early years" is meaningless, all companies in their early years look like this. Many are acquired by other companies, many go out of business, some succeed on their own, but only a select few of the successful ones go on to be like Amazon.

@bisco, a stock market crash would most likely cause the stock price of Tesla to plummet, making it harder for Tesla to raise cash. It would also cause Amazon shares to plummet as well, but that wouldn't directly affect Amazon. In both cases, demand for products would also probably drop (people have less wealth in general) exacerbating the problem from the operations side.

 

Too many variables.
Fewer investors may be willing to invest in high risk stocks.
Fewer buyers of cars, including EVs (I doubt this would have much affect, but is possible).
Tesla may get a new factory for pennies on the dollar as they did in the last crash.

The options are endless. A lot depends upon what causes the crash.

 

As do many other companies.
If Tesla is correct, they should be increasing the money flowing in from operations, thus decreasing their dependence on investments.

This is the key some people refuse to acknowledge as a possibility. Frankly I now enjoy when ‘shorts’ do this so blindly as they have helped me buy my net zero home

 

Better question - how much will the shorter loose once they hear the deal is sealed to build 'em in China:
Tesla Plots Bold China Factory Move, Stays Silent on Cost - Bloomberg

Tesla makes massive bet on China with new 500,000-car Shanghai factory | Ars Technica

.

 

Early years, is 15 years considered early?

 

It is if the product is of the size and complexity of a car, and the company is starting from scratch. It was 7 years before Tesla even had their own factory capable of assembling cars of their own design.