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0 pointsdragontamer9y ago0 comments

> They make a net profit on their cars, but they are currently investing it all into aggressive expansion

Citation needed.

The numbers I'm looking at are the following: http://ir.tesla.com/secfiling.cfm?filingID=1564590-16-18886&...

As of March 2016:

$ 182,482,000 in Research and Development last Quarter.

$ 282,267,000 net loss in the quarter.

So even if we got rid of Tesla's ENTIRE R&D department, they lost $100 Million last QUARTER. The primary cost of Tesla is "Selling, general and administrative", which was around $300 Million.

The only other cost that's larger than their administrative costs were the $779,316,000 spent on parts.

#1 Cost: The parts (~$780 Million)

#2 Cost: Selling, General, and Administrative. $300 Million

#3 Cost: $182 Million spent on R&D.

These numbers are per quarter.

0 comments

vonmoltke9y ago

The statement you linked clearly shows a gross profit and net loss. "Selling, general and administrative" is not a cost of revenue, hence why it does not count against the gross profit. These are fixed costs not tied to the sales volume that covers the basic operation of the company, advertising, executive compensation, and other overhead costs not directly tied to generating revenue or R&D (since it is a separate line item).

Tesla takes in more revenue than their cars cost to build. It currently is not enough to cover all the other expenses of the company.

dragontamerOP9y ago

I'm combating the "aggressive expansion" meme that people don't understand.

Tesla could stop ALL R&D they're doing and they will still be an unprofitable company.

vonmoltke9y ago

You specifically referenced a line from the post you are replying to as such:

> > They make a net profit on their cars, but they are currently investing it all into aggressive expansion

> Citation needed.

The citation is right in the statement. They make a gross profit, which means they make a profit on their cars. The in turn spend more on activities that do not involve getting cars to customers. The activities that cause the company to have a net loss are not "cost of revenue" activities. Presumably the majority of that non-revenue expense involves expansion of the company.

xchaotic9y ago

I agree with, basically Musk is hoping that investors won't lose confidence in the company for several more years. However, this model has so far proven worked with Amazon and a few others and I think there is enough shareholders willing to keep the stock that long.

MortenK9y ago

Why would you consider R&D to be the only expansion expense?

j / k navigate · click thread line to collapse

0 pointsdragontamer9y ago0 comments

> They make a net profit on their cars, but they are currently investing it all into aggressive expansion

Citation needed.

The numbers I'm looking at are the following: http://ir.tesla.com/secfiling.cfm?filingID=1564590-16-18886&...

As of March 2016:

$ 182,482,000 in Research and Development last Quarter.

$ 282,267,000 net loss in the quarter.

So even if we got rid of Tesla's ENTIRE R&D department, they lost $100 Million last QUARTER. The primary cost of Tesla is "Selling, general and administrative", which was around $300 Million.

The only other cost that's larger than their administrative costs were the $779,316,000 spent on parts.

#1 Cost: The parts (~$780 Million)

#2 Cost: Selling, General, and Administrative. $300 Million

#3 Cost: $182 Million spent on R&D.

These numbers are per quarter.

0 comments

vonmoltke9y ago

Tesla takes in more revenue than their cars cost to build. It currently is not enough to cover all the other expenses of the company.

dragontamerOP9y ago

I'm combating the "aggressive expansion" meme that people don't understand.

Tesla could stop ALL R&D they're doing and they will still be an unprofitable company.

vonmoltke9y ago

You specifically referenced a line from the post you are replying to as such:

> > They make a net profit on their cars, but they are currently investing it all into aggressive expansion

> Citation needed.

xchaotic9y ago

MortenK9y ago

Why would you consider R&D to be the only expansion expense?

j / k navigate · click thread line to collapse