Tesla’s actual profitability has been around 1% for the past year.
Tesla CEO Elon Musk has stated that he is open to the idea of merging Tesla with a rival brand. Musk told Reuters that if somebody said it would be a good idea to merge with Tesla, they would be willing to discuss. However, he did clarify that Tesla wouldn’t launch a hostile takeover of a rival brand.
Tesla is worth over US$ 500 billion and the company’s stock price has tripled in the past 6 months. It has been reported that Musk believes that the company is overvalued and wants to focus on cost-cutting and profits to prevent Tesla’s stock price from crashing.
Tesla has achieved profits in the last five consecutive quarters. However, actual profitability has been around 1% for the past year. For the moment, investors are betting on future profits and the day they think the company will be unable to meet their expectations, Tesla’s stocks will tumble.
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