"not trying to be super profitable"

[vickh]

Why I love to buy Tesla products, not sure about TSLA long term though...

We need to not go bankrupt obviously that’s important because then we will fail in our mission,” Musk said during the earnings call Wednesday. “But we are not trying to be super profitable either, if profitability is 1% or 2 %, it’s not crazy. Last quarter it was only point one percent. So we want to be profitable, but we want to be slightly profitable and maximize growth and make the cars as affordable as possible, that is what we are trying to achieve.”

 

[jjanov79]

I think you're misunderstanding the intent. He's saying that rather than posting a large net margin (and paying huge taxes), the company is taking almost all their profits and reinvesting that money back into the company in the form of new factories, upgrading existing infrastructure, R&D, etc. That actually serves to secure TSLA value in the long term.

 

[vickh]

I think you're misunderstanding the intent. He's saying that rather than posting a large net margin (and paying huge taxes), the company is taking almost all their profits and reinvesting that money back into the company in the form of new factories, upgrading existing infrastructure, R&D, etc. That actually serves to secure TSLA value in the long term.

Fair enough. I see your point about GAAAP and EBITDA

Reinvesting is great, but I also like their high volume pricing structure (and so do a lot of 3 owners)