Is there a word for this post-capitalism phenomenon where companies like Uber and Tesla never have to turn a profit they just have to create an earnings bonanza in the stock market and enrich a bunch of people anyway based totally on hype?
— Angie Schmitt🚶♀️ (@schmangee) January 25, 2021
Tesla and Uber are fundamentally different entities. One is a scam and one is an actual company. Tesla’s stock is very severely overvalued though.
Also, Tesla has turned a profit for the past five straight quarters, though not purely on car sales. It should get there, though.
She’s not totally wrong, but it really helps to get one’s facts straight to make a better point. Intellectual rigor is important. Or at least, it should be. Also, she doesn’t understand at all how car companies are run. Then again, neither do most people, because they’ve never thought about how an extremely capital-dependent big-ticket-item business must be run and managed.
And it shows.