lorenfb wrote:Have you forgotten that the M3 was to be the needed "turn-around" vehicle that would save Telsa from Chapter 7?
Amusing and backwards. Model S and X are profitable, and Tesla is betting the company on the Model 3 production ramp up.
So far, Tesla hasn't won or lost this bet. Not looking great, however.
[quote="lorenfb"]the MS & MX do not produce profits for Tesla.]/quote]
Really. Based on what? Cost of production higher than selling price? No. Then what? (2017)
Sales = $11.76B
Cost of goods sold = $9.51B
Tesla lost money because of:
SG&A Expense = $3.85B
At least twice what it would be without the Model 3 development. Tesla could have been profitable, without the Model 3 bet. And some of the cost of goods sold is likely from the Model 3.
Remember I'm not a Tesla stock fan, but for reasons that I think are supportable. Even if Tesla wins the Model 3 production ramp up bet, Tesla is still a tiny fish in a pond full of whales. I'm not going to short sell the stock, the market can be irrational longer than I can be solvent.