Elon gets himself into it. He wants to be the center of attention (Thailand, pedo, 420). Creating a profitable business comes second to his need to be seen as a tech luminary.
I seriously doubt this. Writing a tweet doesn't take much time, and it is probably fun to him to irritate the opposing forces.
For profits, I think it's pretty obvious that both Tesla and SpaceX will start making a profit quite soon, and will probably make a lot of it in the long term. (Maybe they are making a profit even now? Sorry, don't know, I'm just a random developer...)
> (Maybe they are making a profit even now? Sorry, don't know, I'm just a random developer...)
SpaceX is private, so its books are closed and there is no publicly reviewable valuation.
Tesla is public and has had < 5 profitable quarters in its existence. None of Elon's existing companies have been able to turn a profit. Paypal does not count as "his" since he joined there on an acquisition and he was only CEO there for a few months before getting the boot.
You can't be serious? It's not like Tesla is a bakery where on the 6th month the bread sales pay off the one-time asset purchases (e.g oven and other equipment) and then it's all profit down the line. It takes time, especially on the scale Elon appears to be doing it.
It doesn’t take time to get profitable, all it would take is to stop putting billions of dollars into building new factories. The problem is that stopping growth would never bring humanity closer to sustainable transport (nor would it make sensible investors happy)
Yeah.. My argument perhaps wasn't put in the best way, and yes, Tesla is growth-heavy, and probably could have been profitable already if they would have wanted to.
With what I said was more aimed at the argument that building electric vehicles isn't a straightforward business where there is nothing to innovate and the purpose is just to get profitable as quickly as possible. But yes, as you say, they invest it all back.
I wonder if the negative side in the whole argument would just like the profits and stock go up as fast as possible, and that is the reason for unhappynes?
Reinvestment of profits into PP&E doesn't affect the bottom line on the net income statement. That's not what Tesla is doing. They're printing losses (aside from one-off "miracle quarters" where they skim high margin backlogs) and then filling the gaps with newly raised capital.
> It doesn’t take time to get profitable, all it would take is to stop putting billions of dollars into building new factories.
Are you serious? I can throw a rock at any newly minted tech IPO in the last year and almost guarantee that it's not even remotely close to being in the black without even hearing the name.
For profits, I think it's pretty obvious that both Tesla and SpaceX will start making a profit quite soon, and will probably make a lot of it in the long term. (Maybe they are making a profit even now? Sorry, don't know, I'm just a random developer...)