SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Tesla EVs - TSLA
TSLA 418.54+0.2%1:27 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
Recommended by:
longz
To: Eric who wrote (26237)8/16/2025 12:01:39 AM
From: i-node1 Recommendation   of 26717
 
One can easily forecast a significant drop in revenue this year, and perhaps a recover to 110B or so the following year. If that happens, for '25 they'll be okay because the credits last through about 2/3-3/4 of the year.

But next year, if they recover -- which they will IMO (or I would not be a stockholder) and maybe earn 110B, they'd earn only around 9B after taxes. That's okay. That's why we have financial statements.

The loss of these credits are no more of a disadvantage to other EV makers than to Tesla, and this is part of of living. But they are going to massive expenditures for capex and R&D expenditures over the coming couple years - notably on the plant expansions and software development costs (fully deductible as R&D). Basically, as 25-30% increase YoY. (They will also use accelerated "bonus" depreciation where possible on these assets).

I think it is highly unlikely they will produce net losses in either '25 or '26.

Tesla has not been reliant on these credits for its livelihood. It has a damned clean balance sheet, lacks most of the big problems faced by majors like dealerships, recalls, archaic systems (both within cars and within dealerships), so many problems. I think Tesla has a huge advantage in this respect.

Five years from now I don't really know what things will look like but I would hesitate to get balled up about these credits.

The credits are not the business model.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News