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  • Tesla is one of the most exciting companies out there and one of the most controversial.

  • Particularly because how much the man behind it loves to tweet.

  • One wrong tweet and the stock price drops.

  • And we start reading the news that Elon Musk should either stop tweeting or step down as

  • the CEO.

  • However, the reality is that it's not much about the tweets as much as it is about Tesla's

  • financials.

  • Theoretically, Tesla should have gone broke long ago because it burns cash faster than

  • you can imagine (7500USD per minute).

  • Although that it has been profitable in the third quarter of this year, for the longest

  • time since its existence, it has always been at a loss.

  • I know that it seems confusing because if the company is merely burning cash, why is

  • it still around.

  • Tesla is losing money every time it sells a car because it's heavily investing in building

  • the infrastructure that will pay back in the long run such as the Giga factory.

  • So where do they take the money from?

  • Lenders, investors, and the depositors.

  • Everytime tesla unveils a product, it accepts the deposits and then delivers the car months

  • later if not years because it needs the cash to move forward.

  • But investors are afraid that Tesla might go broke before they get their money back,

  • plus the interest that they are hoping for.

  • So every time, Tesla is late on their promise, investors panic, and the controversies start.

  • So as long as the survival of Tesla depends on the mercy of the investors and lenders,

  • this will continue, and Musk's tweets will matter a lot.

  • Note that down Elon!

  • However, they aren't the only ones who are concerned about Tesla.

  • Most of us are excited about electrical self-driving cars.

  • Nonetheless, not everyone thinks that way.

  • Traditional auto manufacturers are comfortable.

  • They have a proven sustainable business model.

  • This new age of electric cars might be too risky and not as profitable as their current

  • model.

  • That's why you don't find the industry giants leading the way although that they have all

  • the resources.

  • And we haven't even talked about the oil companies and the politicians who don't want

  • to see this changes because it might affect their careers negatively.

  • Despite all of these obstacles.

  • Tesla has been in a way bigger trouble.

  • In 2008, during the financial crisis, when the economy collapsed.

  • When one company after another was going out of business, Tesla was on the brink of bankruptcy.

  • Even GM and Ford received a bailout from the government to survive, what do you think happened

  • to Tesla?

  • Elon invested the last pennies he had to save it, and by some miracle in December of 2008,

  • Daimler decided to invest 50 million into Tesla which saved the company.

  • So regardless of all problems that Tesla is going through now.

  • They are in a way better shape than they have ever been.

  • Even industry leaders such as GM or BMW can't catch up with Tesla anymore because they are

  • so ahead in this game.

  • Electrical cars run on batteries which are an essential part of the vehicle and Tesla

  • is ahead of the competition with its Giga factory.

  • They are the largest producer of battery power in the automotive world.

  • In fact, Tesla is more like a battery company than a car company.

  • In 2017, he offered to fix Australia's electricity problem by building the biggest lithium-ion

  • battery.

  • And when he was asked if he is serious about it, he just tweeted, if he didn't deliver

  • his promise within 100 days, it would be free.

  • One of the biggest differences in electric cars is that they run on software as our phones

  • do.

  • And Tesla's autopilot recently crossed a billion miles which gives them the technical

  • advantage in this field.

  • While other companies are trying to build a competitive design like Audi recently did

  • with their new e-Tron which is pretty impressive.

  • Tesla has already installed over 10 thousand superchargers all around the world.

  • Of course, most people won't even need them because you can install one right in your

  • garage but they are convenient if you are traveling long distance.

  • And we haven't even talked about how powerful is the brand name.

  • Tesla is simply the face of future cars, and the guy behind it is the symbol of the future.

  • People around the world are excited about his vision and enthusiasts will continue to

  • deposit or invest in this company because of his vision.

  • In some ways, Tesla is simply too big to fail because it has already achieved tremendous

  • success and another few years of production hell shouldn't be a problem.

  • Thank you for watching, and I will catch you in the next one.

Tesla is one of the most exciting companies out there and one of the most controversial.

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