Tesla's Profits Are Not From Selling Cars

[balthazar]

https://www.fool.com/investing/2021/01/30/teslas-profits-are-not-from-selling-cars/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article

[Drew Dowdell]

That’s been known for years.

[balthazar]

Well, they've only just started to post some sporadic 'profits', but more to the point; it may be a very prudent case study to other OEMs looking to go all BE. It certainly would be fascinating to get a peek at internal business case projections from a major OEM.

[ocnblu]

These established OEMs are projecting/hoping/pleading with a disinterested public to buy an EV that is based on one single chassis, whether it's an "affordable" $40k "Chevrolet", a $125k "Hummer" or a $200k "Cadillac", that is where the "profit" will come from.  But there is no "profit" when the customers don't buy what is being sold.

[balthazar]

At some point, some degree of economies of scale can tip a manufacturer into the black, but as Tesla’s not there yet... are other OEMs figuring on a few years of being in the red before going black??

[Drew Dowdell]

20 hours ago, balthazar said:

Well, they've only just started to post some sporadic 'profits', but more to the point; it may be a very prudent case study to other OEMs looking to go all BE. It certainly would be fascinating to get a peek at internal business case projections from a major OEM.

I'm referring to cash-flow specifically, but yes.  They've survived on selling these credits for a while.  But at the same time, Elon needs to know that as GM and FCA-Stellantis start moving to more BEVs, that source of funds is going to dry up and Telsa better be able to stand on its own.