Comment by lotsofpulp
17 hours ago
>Does the financial markets still expect them to far out-earn Volkswagen and Toyota any time soon, we've been waiting for like a decade already??
These capital heavy industries operate on 30+ year timelines, a decade isn't sufficient time.
Revenues are not the end all, be all. Profit and profit margin, along with revenue trends provide a more complete picture. And the most significant factor is that the market does not expect Volkswagen or Toyota to do anything new, to do anything with the potential to earn more. They are what they are, and they will continue with their lower margin businesses until they fade away.
Investors are betting that Tesla, however, might have a few tricks up its sleeve, that will allow it to expand markets and profits.
They currently seem to have the opposite of tricks up their sleeve, resulting in their sales in Europe either dropping sharply or stagnating...