TESLA’S ASSETS VS GM

TESLA’S ASSETS

AS OF 2016
GM’S ROE
10 Year 23%
GM’S ROA
10 YEAR 4.6%

GTANGIBLE ASSETS : 36BILLION 

    TSLA’S ASSETS: 6.25 BILLION (6.25*.23*10=$13.8B MKT CAP)

    Since Tesla makes no profits, and is all but guaranteed to lose billions over the next couple of years, how will they get to GM’s asset values that earn it only 4.6% return on equity in a mature industry. When will this be? Sometime after 2020? 
            Tesla maybe the new GM if it is lucky , but that is all  that GM has to offer, today.   
    The real problem still is Tesla’s profits today and tomorrow, because they are going to get worse. The Model 3 at a lower margin will cannibalize model s sales despite the companies variable cost going up to meet unit sales demand. Once Tesla ramps volume, it will be come obvious. Ideally Tesla would not need to or want to make a model 3 without a battery breakthrough.  
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