Tesla’s 2024 financial results are out—and they’re terrible

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You just glossed right over the "dropped by 71%" bit...since when is that not terrible? That's an incredible decrease in profits over the course of just 12 months.

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Not in this world.

People will be pushed to buy the products. Patriotism, xenophobia, lies, economic fear and tariffs, straight up government manipulation and collusion.

That’s the value Elon has, Zuck is jealous of, Tesla and the shareholders will benefit from, and the people allow.

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Expensive luxury cars for rich people with over 30 thousand subsidy, and they still lose money. But, hey, credits is the new Bitcoin.

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That's just another way of saying buyer sentiment is the only thing that matters, in which case we're back to square one.

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Tesla would never exist in a capitalist system. Their business model is wholly predicated on government subsidies and carbon credits. Furthermore, the hen has come home to roost and their cars, like I linked above, are just bougie expensive paper weights sold by the biggest con man in history. If I was buying electric tomorrow, I'd even look at Volkswagen before considering a Tesla. I want my cars to last more than 4y, not try to kill me, and, I don't like to pay extra for vapoware. If anything, the fact Tesla still exists, is testament we no longer live in a capitalist system but in an oligarchy where companies selling snake oil can still have high valuation because they are close to the ~~N*%i Party~~ party in power. Looking at Teslas's results and seeing the carbon credit weight on their fundamentals and looking at the speed BYD is expanding, only Authoritarianism can save them from bankruptcy already in 2025. Luckily, their CEO just helped bring about the 4th reich, so they are fine, just don't pretend it's because it's a solid enterprise, it's anything but.

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If you're a value investor then you believe that the actual value of a company depends on its current and future earnings.

And while the market price will tend towards the actual value in the long run, there are other factors that also influence the market price.

In fact, the whole point of value investing is that for various reasons some stocks are "underpriced", ie currently priced at a discount to their actual value. Those are the stocks you should buy, and you should expect their price to increase.

Conversely, for various reasons some stocks are "overpriced", like Tesla. You should not buy those, because you expect their price to decrease in the long run.

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Exclusive contracts at 20% mark up. Can’t wait for all police vehicles to switch over to teslas.

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I'm sure that Musk hopes that "people will be pushed to buy" his products.

But so far, that plan isn't working. In fact it's backfiring, people are running away from his products.

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Right. So anyway, the market does often appear oversensitive to buzz and under-responsive to fundamentals. What's your take on market reforms? Are there any changes you'd like to see, regulatory or otherwise?

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several key points highlighted

Lists nearly a dozen items

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The MAGA crowd hates just about everybody. The last time they did anything of note was the 1/6 insurrection, and that was with the help of Dear Leader.

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I don't care if the market is under responsive to fundamentals. That just means some investors are exercising poor judgment and paying too much attention to irrelevant factors. It also gives an opportunity to investors with better judgment.

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which means your main activity is still wildly unsustainable over a decade after the company being founded.

Oh so it is an AI company then.

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You are. Without the EV credits, Tesla would have folded years ago.

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You misread the sheet slightly. The total profit for the year was $7.1 billion, of which $2.8 billion was renewable energy credits. I.e. their profit would have only been $4.3 billion.

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Do you get why this is starting to feel very circular? If not, please don't trouble yourself to respond. Sincerely.

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Yes you are understanding that correctly. For producing EVs, they get credits from the federal government. I don't know the exchange rate -- e.g., how many EVs per credit.

Then, Tesla turns around and sells these credits to buyers, usually other companies. Companies buy these credits from Tesla to comply with regulations requiring certain environmental outcomes, and credits count towards these outcomes.

In theory this type of program incentivizes and rewards companies who invest in the technology(is) tied to these credits, in this case EVs. In practice it's a way for other companies to comply with renewables regulations without actually doing anything to meaningfully reduce their impact and footprint (other than buying credits)

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I'm not sure what you mean.

You seem to be starting with the assumption that market prices should reflect fundamentals, and questioning why they don't. But why do you assume that?

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So it's a government subsidy at no cost to the government, funded instead by other companies? That's actually quite a neat idea

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71% drop in a single quarter is time for workers to start looking for other jobs bad. This was way before Elon's Nazi salute so expect things to get way worse. I'd be so embarrassed if I drove a Tesla.

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Tesla’s 2024 financial results are out—and they’re terrible