With help from China, Tesla has turned itself into an unusually profitable car maker. Whether that makes it a tech company worthy of a near-trillion-dollar valuation is less clear.
As it has scaled up production in its Shanghai factory over the past two years, the electric-vehicle pioneer has accumulated enough profit to make up for all the losses in its previous history. Late Wednesday it reported a 14.7% operating margin for the fourth quarter in an industry where single-digit margins are considered normal.
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Tesla will prevail.
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