Question

Let's look at Tesla's profitability. What do the numbers say? Is Tesla profitable? Does it have a competitive advantage? Motivate your responses.

Answer 1

Tesla’s financial statements suggest that the business has never seen any profits in any financial year of its operational era. In 2019 the business filed for a USD 862 million as losses. However, the business suggests that the loss even after a profit of 105 million USD in the last quarter of 2019 even after a net loss of nearly 9millions. This gives a sign that is important to be noticed. The numbers give a bad position for the business however the last quarter’s results show that the business is turning back and is in the phase of growth with a 12% rise in its stock prices post 2019. This means that Tesla’s research and development alongside its hard work in the best of no carbon emission car manufacturing concept are gaining the needed market potential which was a huge cost in itself for the long term.

The business has a technology of fast electric vehicles with a similar kind of fuel charged cars for the riders in the modern age. The concept was developed with a huge cost which may be the reason for the loss as the business is consistent in developing the needed product that they aimed for to be a specialist in the market. The competitive advantage of the car is its one charge 400 miles at the single power and speed of any sporting car which needed time to develop the competent product that would encourage all age groups for a Tesla car. The carbon footprint is a big issue which is what Tesla wanted to resolve and it has a great market potential for the global car markets. Hence the long term 0of the business is just showing the signs of its change of taste from the fossil fuel to Tesla concepts which even the competitors are trying to adopt for the future. The future of Teals for its previous knowledge and research would drive it ahead and turn the number very efficiently towards the profits shortly.