I do own Tesla stock but no Tesla car. I would recommend buying some at these low dip prices, because the rebound is happening. The articles authors would have one believe Tesla is in trouble. As if growing $1.13 billion in profits is a "problem"! They make a profit on every EV they make, while GM, Ford and others lose thousands on each EV produced. Last I heard, they're losing $132,000 on each EV. Tesla is able to cut prices because they still have healthy profits on each EV.
They're breaking out the "slump" late this year, with the ramp-up of factories and several new factories getting built soon. And it isn't just about cars, it is Jetsons-level technology that they're working on which haters fail to observe.
Yeah I think Ford is losing about $45k per EV not $100k but it’s not really the question. Building out EV factories is complicated and worse for a legacy ICE company. Tesla had several benefits. They were a first mover so they have no legacy costs like Ford et al. Second, as a startup they were able to tap capital markets in a way no legacy maker could. They valued it like a tech company eg Google, Amazon and a few others were capable of absorbing billions in losses for over a decade because the capital markets financed the growth. Now all of them are profitable. It took 10-20 years but they are all dominant players in their field. Third, they had massive government subsidies. Musk exploited every opportunity he was allowed - and I don’t criticize him for it that’s what he should do even if I disagree with the policies that enabled him. Finally, they have this absurd carbon offset credit system. For years Tesla was able to sell carbon credits to legacy makers and pad the books to the tune of billions. Again, my belief in that system is irrelevant - I think it’s stupid - but it exists so yeah of course he will use it.
Tesla is not only not going anywhere it will be a dominant player in the lives of Americans for decades to come. Cars, robots and more. Musk himself with his other companies will be even more influential. He and I are roughly the same age so I hope we both make it to a ripe old age because I look forward to seeing what he does, and what happens to him. He could end up like Howard Bughes - hounded by the government because he is too disruptive of other industries and he is also not shy about his use of drugs - Hughes became addicted to codeine due to pain and became a recluse due to some sort of depression. Musk, while probably not an addict is the kind of person who is maybe 1 in 300 million or more. That personality type is impossible to restrain or diagnose and I’m not sure anyone is qualified to treat any mental illnesses he may have. But he seems stable enough, a little ADD with so many things going on (cars, rockets, social media, robots, brain implants, and AI to name a few), but so far he’s handling it all very well. I wish him good healthy long life and look forward to seeing all these visions play out over the next 30+ years.