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

[iii@mander.xyz]

Net profits $2.3B. "Poor financial results". How does one reconcile these two things?

That's 2.3B USD on a 1.29T USD valuation, or 0.17%.

Valuations are typically reflective of expected future profits. Multiples of ×20 are possible for risky (tech or biotech usually) companies. But the ratio is ridiculously off the charts for tesla. If it does not improve, it will have turned out to have been a very wastefull use of capital.

[sirboozebum@lemmy.world]

It's terrible for the stock price which has a price to earnings ratio of almost 200.

If this were a normal company with a profit margin of ~6% and a normal stock price (in line with the market average), it would be fine.

[panarab@lemm.ee]

I wouldn't buy a Tesla even if Elon wasn't a Nazi and a Zionist.

[boonhet@lemm.ee]

I can barely see how they were so popular up to now anyway. I, too, thought they were cool like 10 years ago, when they were the only real electric car (Leaf and I-Miev don't count and we didn't get the Bolt or Volt here, only Opel Ampera and Ampera-E, which are ultra rare). Then a couple of years later, I realized some things, in this order: 1) Tesla interiors are THE BLANDEST THING EVER, 2) Elon Musk's been seeming increasingly weird starting with the cave diving incident, 3) Tesla quality control is absolute shite

Tesla changed the world by proving you CAN have good range and performance in an EV, but now they're way past their prime. The Germans, Swedes, Koreans and now I believe EVEN THE CHINESE make better EVs. I have no experience with non-Tesla American EVs to comment on those, but I wouldn't be surprised if they surpass Tesla in overall quality of vehicle in a few years too.

[matombo@feddit.org]

i guess time to short it? seems like a bubble

[iii@mander.xyz]

Bill Gates is famously shorting TSLA (1)

[iii@mander.xyz]

Which means the system isn't working. Surplus credits should come from improved efficiencies, not excessive allotment.

Total number of credit goes down over time. That mechanism ensures an adapt, die or emigrate pressure.

[iii@mander.xyz]

I guess the issues arise if Tesla just pockets the subsidy without passing on the savings to savings to people buying EVs

This report shows that they do just that: without the emissions credit system they would operate at a loss. In other words: they sell cars for cheaper than the cost of manufacturing.

[blackmist@feddit.uk]

Ah, but you've forgotten the real money maker.

• Having full control over the regulatory authority that currently prevents him putting his automated deathtrap taxis on the roads

Turns out it's much cheaper to buy governments than it is to perfect self driving technology.

[nospiritanimal@lemmy.world]

Ah so only the unverifiable services that don't require an easily trackable commodity did well.

I wish I could make up income too.

[__lost__@lemmy.dbzer0.com]

The problem is that it has been a bubble for most of its public trading existence. It was highly overvalued 10 years ago, the stock price has never made sense, so who knows when it will finally correct.

[victorz@lemmy.world]

Swedes? You mean Volvo? Aren't those manufactured in China as well or nah?

[boonhet@lemm.ee]

Well yeah, they're about as Swedish now as Chrysler is American. Maybe a tiny bit more.

Still, they produce a lot of cars in Sweden, are traded on the Swedish stock market and are headquarered in Göteborg.

[buddascrayon@lemmy.world]

All it needs is a couple of opportunistic fuckers to take advantage of chaos and that shit will plummet like a fucking rock.

[rogue@feddit.uk]

Why is this an issue. They have their incentive to keep building and selling. As long as they’re building and selling, it doesn’t matter to the rest of us what their profit is.

"Issue" was probably the wrong word "potential for controversy" would have been more appropriate. It's potentially controversial because if the profits exceed the subsidies you're effectively just giving money to shareholders.

If they’re building make excess profit, that’s just more opportunity for legacy manufacturers to be competitive. Capitalism 101

No. This is entirely the opposite of capitalism. Under capitalism there are no subsidies. If a business isn't profitable then it fails. Simple.

What we have is an abomination of capitalism and corporate socialism. That's the controversy I referred to above. Where governments funnel money to enrich corporations and the select few rather than helping improve population they are charged with governing.