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Tesla takes on $30B in credit as it approaches unprofitability

161 points · 221 comments · ciconia

  1. rgmerk · · focus · HN ↗
    Look, I get that Elon wants to chase AI, but why not do relatively simple, low-cost things like build a proper 7-seat SUV that uses the Cybertruck platform - or even a properly stretched Model Y platform (rather than the six-seater L)? Or how about a delivery van on a stretched Y platform?

    Tesla's product line is narrow and aging rapidly.

    1. yodsanklai · · focus · HN ↗
      Do they still care about cars though or they're chasing some new things after losing to the Chinese.
      1. fooker · · focus · HN ↗
        >after losing to the Chinese

        The total market cap of all the Chinese car companies combined is about 300B.

        Tesla alone is worth ~5x that, because the market rewards this behavior of chasing new things.

        If Tesla suddenly pivoted to 'caring about cars' and tried their best to produce low cost reliable EVs, the market is going to punish them by valuing them at less than 300B. That is, if they succeed at that. If they fail, which would be more plausible, they go bankrupt.

        Why would they voluntarily do that?

        We could do that by changing public opinion or regulating what public companies must do/report, but that seems somewhat unlikely. It's so much easier to claim that autonomous driving will be solved in six months :)

        1. alphabeta3r56 · · focus · HN ↗
          BYD had revenue of 110B while tesla had 96B and both have around 4B dollar of profits. BYD also has better credit line (from Chinese govt), which is the whole point of market cap. I dont think official market cap value reflrct this reality.
          1. schiffern · · focus · HN ↗
            Did BYD stop losing money on EVs yet?

            Last I checked they (still) never release their EV profit alone, always bundling the numbers with plug-in hybrids and high-margin battery sales to other companies. If BYD made money on EVs there'd be no need for shenanigans.

            1. TheScaryOne · · focus · HN ↗
              Nope, just like SpaceX can't stop losing money when you take out xAI.
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