Looks like a great call Xandman. If China does a U.S 2008, those 32.9K models sold in August will look like a banner month. So far though, my "generational bottom" of $540 has held. We shall see. Tesla sold 32,968 China-made vehicles in July, local sales plunged m/m A Tesla car pictured at a charging point in Beijing, China, April 13, 2018. REUTERS/Thomas Peter/File Photo BEIJING, Aug 10 (Reuters) - U.S. electric vehicle maker Tesla Inc (TSLA.O) sold 32,968 China-made vehicles in July, including 24,347 for export, the China Passenger Car Association (CPCA) said on Tuesday. Local sales of China-made vehicles plunged 69% to 8,621 cars from 28,138 in June. Tesla's sales in the first month of each quarter are usually lower than the following two months. The company, which makes Model 3 sedans and Model Y sport-utility vehicles in Shanghai, sold 33,155 China-made vehicles in June. Last month, Tesla introduced a cheaper version of the Model Y in China, where it faces increased scrutiny from both regulators and the public and growing competition from local rivals. It also lowered the starting price for Model 3 sedans. China's BYD sold 50,387 electric vehicles last month, while General Motors Co's (GM.N) China joint venture with SAIC Motor (600104.SS) delivered 27,347 units. CPCA also said China sold 1.52 million passenger cars in July, down 6.4% from a year earlier.
The only thing that matters in business is NET PROFIT. There are companies that have sales that run in the billions, but still lose money. What's the relevance of sales if you cannot make profit? Show the charts with the profit and keep the profits of selling emission rights seperate as they have nothing to do with Tesla's core business. There were already many quarters where the total profit came for selling emission rights, while the car production/sales was losing money on every car that was build.
These charts give numbers that, the way they are presented, look spectacular. But these are not the NET PROFITS. The net income, which is still not the NET profit, is just over 2 billion. So that is between 4 and 10 times smaller than the numbers you posted. It is easy to cheat with charts, all depends of the min and max values you use on the two axes. In my chart the NET margin is, for the best period ever, just 5%. Looks much less spectacular than your charts, but is closer to reality. The margin barly moved up since 2014.
Unlike Amazon during the .COM era, TSLA does have a lot of big brand competitors whose build quality is of a very high standard and they are quickly adjusting to the growth of the EV market. So for Tesla to be so overvalued based on future potential profitability, market share growth, etc. is incomparable to the likes of AMZN's past, as there are other key players in this market.
Tesla is in a growth stage and net margins aren't a priority. There's been plenty of Tesla haters pointing to one thing or another to dismiss its spectacular growth, starting with profits from emission rights, as if that was cheating. Next will be its energy business profits or its applications profits from FSD or energy management. At least haters now shut up about Tesla sales numbers! The growth of the EV market is a great advantage to Tesla because its cars will be measured on equal basis against traditional manufacturers and so far it has shown to hold its own quite well. Remember that Europe, China and part of the US will ban sale of ICE vehicles by 2035. It will soon no longer be ICE vs EV, but EV against EV and today Tesla is unbeatable. With the ramping up of Berlin and TX, Tesla will no longer be constrained by production limits for some time. Expect sales to jump and margins to improve accordingly.