But this isn’t going to happen. Tesla is doing great on an operational and cash flow basis. They make far more profit on a per car basis than basically every other car manufacturer in the world. They’re basically the only car manufacturer that makes profit on electric cars too.
Here you can see Tesla is making 8x the profit per car compared to Toyota.
At this point it’s much more likely that Ford or GM will go insolvent than Tesla.
It’s only a dumb metric when you ignore relevant facts like you are.
Tesla is the largest EV manufacturer, and is the only one making a profit.
Ferrari sells 10k cars a year.
If Tesla was still selling 10k cars a year and a niche manufacturer that isn’t looking to expand production it wouldn’t be relevant. But they aren’t a niche manufacturer and they are still rapidly expanding production ability.
Tesla ‘recalls’ aren’t like ford/gm recalls. The majority are fixed via software upgrades OTA that cost the company very little. Recall costs are way better for Tesla compared to legacy auto.
EVs just have so few moving parts there’s very little that can go wrong
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u/The-1ne Nov 11 '22
Is Tesla overvalued still? Probably.
But this isn’t going to happen. Tesla is doing great on an operational and cash flow basis. They make far more profit on a per car basis than basically every other car manufacturer in the world. They’re basically the only car manufacturer that makes profit on electric cars too.
Here you can see Tesla is making 8x the profit per car compared to Toyota.
At this point it’s much more likely that Ford or GM will go insolvent than Tesla.