Quote:
Originally Posted by Perfectlap
Earnings have become harder and harder to come by for any publicly traded business.
The first that comes to mind is Amazon. I've tracked my purchases with this company ever since the late 90's. They are in the rare position of being one of the few companies who get more of my money each year than the previous year. I have basically stopped supporting corporate brick and mortar chains, Amazon is getting nearly all of that money.
Yet where are the earnings? I think El Chapo escaped with them when he broke out of prison. Tesla will never make money probably. Things are different now, it's about market share. Tesla will dominate the alternative to the IC engine car. Once their battery factories are in full swing the whole vehicle pricing equation changes and it's not just a rich person option anymore. And low gas prices will end at some point, I think the end of China's one child policy will be a big role in this -- they will be consuming more of everything for generations to come. Ditto for India who are a bigger threat to U.S. employment, both blue collar and white collar. The combination of India and China spending more per person will put the expectation of demand back in favor of oil suppliers and speculators so gas prices will once again be high at some point while the average U.S. worker's pay check is stagnant for the forseeable future since we don't manufacture anything at a large enough scale to employ everyone. I predict a big enough chunk of these middle income workers will get tired or fearful of these very volatile swings in oil prices and look for vehicle options that allow them to make a fuel budget and stick to it. We're the Saudi Arabia of coal, making electricity with more stable price action will never be a problem here. I think Musk knows its just a matter of waiting for all this to fall in line.
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Amazon I get. They are sticking every penny they make back into the business. This is a change from the past as investors generally have demanded actual earnings earlier. These days they seem much more patiencent with some types of business. Just don't let a equity firm get a hold of the business.
Agreed that electrics are the future of personal transportation. Even though the US has alot of coal that form of energy is being crushed due to cheap natural gas. We'll see what the future bring but it will certainly be interesting. With electrics I hoping for some exciting sports cars. So far I have not seen anythingI want but I am hopeful.