Check out this week’s Danger Zone interview with Chuck Jaffe of Money Life.

“I’m optimistic about being profitable in Q1 and for all quarters going forward.”

-Elon Musk, January 31, 2019

Just six months ago, Elon Musk made the bold prediction that Tesla would be profitable in all quarters going forward. Instead, Tesla has recorded a $689 million operating loss through the first half of 2019. Musk now says he feels “pretty confident” about breaking even in Q3 and returning to profitability in Q4. Given his track record of missed predictions – see the constant revisions to the Model 3 production targets – investors should place no stock in this claim.

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    2 replies to "More Broken Promises from Tesla"

    • Gary

      You have been very good on identifying Danger Zone stocks. Has TSLA’s Q3 results changed your view? I have made money selling calls on TSLA but now in the red with the surprise profit…

    • Sam McBride

      Tesla results don’t change our view at all. Revenues are down 8% year-over-year, and the positive earnings was mostly due to significant cost-cutting and scaling back of capex. In essence, this quarter showed they can only achieve profitability by sacrificing the spending/investment necessary for growth. However, in order to justify its valuation TSLA needs both profitability and growth.

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