Traditional car companies must be damn scared to have to publish this FUD.
Tesla cannot be possibly dying out. Don't you see Tesla cars everywhere in the US? yes they are spending money, buying things to grow as they are so incredibly successful they cannot satisfy demand. Dying out? you make me laugh.
If you spend 10M dollars buying equipment that in a year is worth 100M dollars, you are not dying out.
No I don't, might see one once a week or month. They're common in Silicon Valley but that's a small fraction of the US.
edit: Tesla has sold something like 300k cars in the US which comes out to under 0.15% of all cars in the US. So basically, negligible. And a third to a half of that seems to have been in California. So in most of the US you'd need to look at on average 2000 cars before you see a Tesla.
I live near Kansas City, and see probably a dozen a day. They seem to be very popular, but there is a good charging infrastructure in this area. I'm cheap though, and bought a used Leaf.
No, I do not see Teslas everywhere in the US. In fact, I see the same brands I've seen forever: Fords, Chevys, Hondas, Toyotas, etc. etc. Tesla makes a niche product for a dedicated few. How is this debatable?
If you spend $10 million making things that you sell for $9 million dollars then it doesn’t matter how wildly popular your product is, unless you have another source of income to cover that $1 million then you will be out of business when your reserves are depleted.
Arotega's post outright states Tesla is spending money to grow to meet unmet demand, and that seems to be backed by actual Tesla unit and income numbers. You've countered with a static, ungrowing fixed income/cost model, with numbers pulled out of thin air, with no rationalization behind those assumptions.
I haven't downvoted you, but you've posted what's at best a toy mathematical model unrelated to Tesla. Others might be downvoting under the assumption that it was supposed to be related to Tesla, in which case they're probably downvoting based on the misapplication of math.
Expanding your math model by the tiniest bit - if $2M of those costs are fixed, merely doubling production could bring you to break-even (2x9=18, 2+2x8=18), assuming income and costs linear with unit volume. Further growth would enter profitability. But even this is super unrealistic - the entire industrival revolution was basically driven by our ability to use automation to drive costs sublinear faster than income goes sublinear, which also leads to profit.
Tesla cannot be possibly dying out. Don't you see Tesla cars everywhere in the US? yes they are spending money, buying things to grow as they are so incredibly successful they cannot satisfy demand. Dying out? you make me laugh.
If you spend 10M dollars buying equipment that in a year is worth 100M dollars, you are not dying out.