Tesla Loses Money Every Year, This is How They’re Still in Business
To the untrained eye, sometimes certain concepts in business might just simply not be ...
To the untrained eye, sometimes certain concepts in business might just simply not be as they seem. For companies like Tesla, this theory definitely holds true as, on the surface, it might look like the company is on the fast track for doom, however, when you start to break it down a little bit more and see why exactly the numbers look the way that they do, you’ll see why Elon Musk and company aren’t exactly in the worst position after all and instead, their future looks rather bright despite the fact that their numbers remain in the red.
As the company has been losing year in and year out with some years even losing in the billions without showing a profit yet over the last three quarters of a decade or so, how exactly is it that they keep on growing and moving up with investors remaining excited about what the brand has to offer?
Well, basically, the concept behind it all is the fact that investors are rather optimistic about what the company might produce in the future and how they’re spending their money now. Because Tesla seems to have so many new ideas to be able to sink money into, the income just keeps on flowing as people are willing to shovel over their bank accounts to possibly have a chunk of the company that has promised so many big things. Long story short, they might not be producing a profit now but are expecting to do so in the future after their groundwork is finished being laid as it’s not something that’s going to happen overnight.
If you follow along down below, you will get the more detailed breakdown of how exactly it is that certain companies like Tesla might not be showing a profit but still manage to surge along, promising investors big things and why too much profit that’s not being spent can be a bad thing in the eyes of investors.
After watching a breakdown like this, certain business concepts might make a little bit more sense to you and the next time that you hear about companies taking a loss, perhaps it won’t throw up such a big red flag.