I was agreeing with you. The profits are real, to Tesla. Just like the cost's/loss to the companies paying out the money for energy credits are real.
It must be very interesting how you balance your company's books.
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these aren't shady dollars - this is profit basically handed to Tesla by legacy auto inability to change. Is Tesla smart to capitalize on legacy stupidity? Yep. Does this make the profit by Tesla illegitimate? Nope. Those carbon offsets are paying for GigaBerlin and Terra-Austin.... when the offsets are eventually gone Tesla will have industrial assets and the vehicle volume to drive profit through product sales.You’re right there’s many on Wall st, who have not cared, or turned a blind eye, or who where complicit, in all sorts of unethical actions all the way up to out right fraud. Not that I’m suggesting anything at all untoward from Tesla. Not the slightest.
But hey, ask Arthur Anderson if it was important they work out how Enron made profit !
In one sense it was from a legitimate, core activity trading power. But on closer examination not quite so legitimate.
But Yes it’s not enough to make profit, it has to be from core business activities, not side gigs.
So while you may not care if Tesla’s minuscule profit is 100 % due to say charging employees for parking, or from canteen operations, or Elon’s charging the sperm bank for deposits, or carbon credits, Its actually a good idea to care where the money is coming from, primarily to work out, will it keep coming, and by how much or how little, or will it stop all together
(no pun intended, oh ok it was intended just a little)
As the $ 2 Billion in carbon credits sold to FCA, will soon dry up, for reasons I’ll let you not care about.
And that $2 Billion goes 100% to the bottom line.
And that $2 Billion lets Tesla turn a sizeable loss into a disproportionate minuscule profit.
To make that $2 Billion go onto the bottom line the same way the Carbon Credit sale to FCA does, means Tesla has to make that profit from something like 200,000 extra cars sold ! So if you think that’s easy and no big deal, then yep you don’t have to care where Tesla finds its revenue or profit from. But I know one person who does, and that’s Elon . . . . . especially if he had to personally make up the shortfall . . . . .maybe not by selling his whole body . . . but just a few cc’s at a time !
P.S. You may want to ask the S&P committee who rejected including Tesla in the index,
whether they cared where Tesla's minuscule profit came from !
And why they let significantly smaller company's with profits from core activities in !
$16 mill profit in one quarter, $130 mill in another quarter, etc, its certainly better nothing, and you're right its infinitely useful, overall $2 Billion pure, that goes directly on the bottom line is very useful. Especially if you're making an operating loss from core activities.
the carbon credits are paying for Tesla to build its manufacturing infrastucture.... by Wall Street measures its impossible to be profitable while expanding as it has the ridiculous expectation that profit reinvested into a company is loss. Brought to you by the same Street that brought you the housing market collapse because they said they could be trusted to regulate themselves. Wall Street has exactly zero credibility to judge the tesla business model.
