Disclaimer:

Disclaimer: The blog posts and comments on this blog and posts on social networks are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is". The blog is stocks analysis and valuation, Bitcoin, Cryptocurrencies, Artificial Intelligence, AI, deep-learning focused. Independent, unbiased AI insights. Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blog posts on this blog and posts on social networks. Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blog post and posts on social networks! The blog is property of Wolfteam Ltd. www.wolfteamedge.com Respectfully yours, Petar Posledovich

Friday, July 21, 2023

Tesla Amazon Comparison

 

Many analysts and investors compare Tesla with Amazon stressing that Amazon also remained unprofitable for a long time.

Amazon, however rarely exceeded 5-7 % negative net profit margin, while Tesla, if one takes out the tax credit subsidy is on a negative net profit margin of (-) 22 %.

Amazon benefited from the fact that no value added tax is applied on electronic trade. Tesla benefits from tax credit of circa 7 500 USD for each sale of its vehicles.

Wolfteam Ltd.'s corporate opinion is that Tesla is grossly overvalued and the comparison with Amazon is not just as things stand, because the negative net profit margin, if one takes out the tax credit Tesla does is several times higher than Amazon's past negative net profit margins.

 

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