Comment on Elon Musk demands another huge payday from Tesla

• Corkyskog@sh.itjust.works ⁨1⁩ ⁨year⁩ ago

  Why haven’t shareholders elected new board members? Or does his sycophants have the majority in combined total?

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  • Hypx@kbin.social ⁨1⁩ ⁨year⁩ ago

    There's good reason to believe that Tesla is an Enron-esque style fraud. No one in charge has shown any business acumen, and no one can explain how it is actually profitable. But that requires only stooges and yes-men on the board. There cannot be any accountability.

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    • No1@lemmy.world ⁨1⁩ ⁨year⁩ ago

      Every time I leave my house, I see dozens of Teslas driving around. If they’re not profitable, then they’re horrifically bad at making money. They’re ubiquitous. Pretty impressive market penetration for a business run by people who don’t know what they’re doing.

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      • Voroxpete@sh.itjust.works ⁨1⁩ ⁨year⁩ ago

        Their single biggest revenue stream is selling carbon credits. They’re basically a regulatory arbitrage business with a side hustle in cars.

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      • Hypx@kbin.social ⁨1⁩ ⁨year⁩ ago

        Enron was a huge business that had millions of customers. It just happened to lose money while doing so. The crime was that they hid that last part.

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      • Riven@lemmy.dbzer0.com ⁨1⁩ ⁨year⁩ ago

        Might be area dependant. Lots of them where I work at not many at all where I live at about an hour away.

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    • partial_accumen@lemmy.world ⁨1⁩ ⁨year⁩ ago

      and no one can explain how it is actually profitable.

      Hang on a sec, its publicly trade company. Its pretty easy to see how its profitable especially compared to other legacy automakers.

      Tesla vs Ford numbers:

      On the other hand, “let’s look at Tesla and the Model 3. Tesla is aiming for 25% gross margin on the Model 3 and mid-teens profit margin (let’s say 14%). The average price of the Model 3 is projected at around $42,000… [so] the average gross margin on a Model 3 would be $10,500 and profit margin would be $5,880. Compared to Ford’s average vehicle profit margin of $1,100, the Model 3 would be 5x as profitable.” source

      Disclaimer: the source is from March of 2023 and Tesla has cut prices (which means less profit) since then, but they had a lot of room to do so with so much profit per car.

      So one could say that Tesla has been able to charge a premium for a cheaper car, or they’ve been able to reduce manufacturing cost for a moderately priced car. Both result in high margin returns for the company.

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      • Hypx@kbin.social ⁨1⁩ ⁨year⁩ ago

        They have a direct sales model which is more expensive to operate and exaggerates profit margin. There’s also reason to believe they are wildly understating warranty costs plus ignoring R&D costs. People who look closely have consistently concluded that Tesla cannot really be making money, or have very narrow profit margins at best.

        Huge price cuts will compound these problems dramatically.

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    • fosforus@sopuli.xyz ⁨1⁩ ⁨year⁩ ago

      Their Q4 2023 results will be called in on 24th this month, so we’ll see soon. They were still making profit in Q3, even if dwindling.

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• be_excellent_to_each_other@kbin.social ⁨1⁩ ⁨year⁩ ago

  I didn't realize that. That's disheartening.

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• KingThrillgore@lemmy.ml ⁨1⁩ ⁨year⁩ ago

  Are you certain? I’m certain James is the one who broke the story about the drug use since its also his family that runs the WSJ

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• Landmammals@lemmy.world ⁨1⁩ ⁨year⁩ ago

  You are forgetting about Rule Number 1

  Don’t Fuck With The Money.

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