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Old 03-06-2020, 02:36 PM   #11 (permalink)
JSH
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Quote:
Originally Posted by Fat Charlie View Post
I would submit that a company losing money or barely making a profit, yet paying a nice dividend is more fundamentally flawed than Tesla, who makes a profit despite spending like a drunken sailor. Maybe that's why their stock price is so high- despite investing every dime they make or can borrow back into themselves, they post a profit.
Tesla has yet to show a yearly profit. In 2018 Tesla structured there big spending items to hit their books in the first 2 quarters. Then they showed a small profit in the second half of the year. They repeated the same pattern in 2019. Maybe 2020 will be different but to date they are losing money.


Ford’s low profit in 2019 can be attributable to 2 major one time events

1. They completely botched the new Explorer launch causing massive reworks and 25% lower sales because they didn’t have vehicles to sell

2. They paid out a $500 million signing bonus to UAW workers to sign another 4 year contract.

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