Analysts and Tesla enthusiasts are entering unexplored territory — Tesla has never operated at these production and expense levels.
For nearly its entire history, Tesla has been pegged as a tech company — a creation of Silicon Valley, where the firm is headquartered.
Rather, I mean software and the culture that pervades the Valley, where billion-dollar businesses can quickly be built by companies with a dozen laptops, some Amazon server space, and cold brew on tap. Tesla has never really been in this industry. Instagram weighed literally nothing before its was acquired by Facebook. Tesla's first viable product, the original Roadster, tipped the scales at 3,000 lbs.
Because the car business is staggeringly expensive to run, there needs to be some compensation to even attempt to be in it — and that's the equally staggering amount of cash that automakers see slosh through their operations. Cars are very expensive things. Tesla's sell for between $40,000-$150,000. Hence the revenue surge in the second half of 2018 for Tesla.
In many ways, this situation highlights the bind that Tesla is in as a public company. We forget that Tesla raised just $226 million in its 2010 IPO, with its stock trading at around $20 for several years thereafter. In about a decade, Tesla has gone from being completely insignificant to being sort of important, selling about 250,00 vehicles last year. Its market capitalization, meanwhile, has surpassed Ford's and at times exceeded General Motors'.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Tesla Promises Incredible Numbers For 'Tesla Network' Robotaxi ServiceTesla asserts owners can make up to $30,000 per year in profit from hiring out their cars in the Tesla ride-hail network, which would compete with Uber at half the price. Elon Musk says you would be crazy to buy any other car -- what do the numbers say?
Read more »
Tesla lost $700 million in the first quarter on Model 3 problemsAnalysts had expected Tesla earnings to fall sharply after a federal tax credit for Tesla vehicles diminished at the beginning of the year.
Read more »
Tesla’s earnings were a ‘debacle,’ says longtime bull in scorching commentaryTesla Inc.’s first-quarter earnings and accompanying call with analysts was “one of (the) top debacles we have ever seen,” according to one longtime Tesla...
Read more »
Elon Musk’s 6 productivity rules, including walk out of meetings that waste your timeIn an email to Tesla employees, the tech entrepreneur shared tips on getting things done.
Read more »
Tesla investigating apparent explosion of parked car in ShanghaiTesla said Monday it immediately sent a team to investigate an explosion of one of its cars in Shanghai Sunday evening local time.
Read more »
Stocks making the biggest moves premarket: Tesla, Coca-Cola, Twitter, Verizon, Hasbro & moreSome of the names on the move ahead of the open.
Read more »
Tesla toils in first circle of ‘production hell’CEO Elon Musk’s 2017 lament about the Model 3 is taking wider hold. Demand has softened, the battery Gigafactory is underperforming, and capex and cash flow are falling. Yet Musk keeps promising new models and bumper sales, while changing tactics on the fly. The limbo can’t last.
Read more »
Tesla lost $702 million last quarter, snapping its profit streakTesla lost $702 million last quarter, ending its two-quarter profit streak
Read more »
In a bind, Musk hopes autonomous Tesla taxis will drive a new, positive narrativeTesla's Elon Musk is expected to detail a widespread deployment of fleets of self-drive Teslas to compete with Uber, Lyft and Waymo on Monday. Safety advocates are alarmed.
Read more »
After-hours buzz: Facebook, Microsoft, Tesla & moreSee which stocks are posting big moves after the bell on April 24.
Read more »