TL;DR

Tesla’s “profits” are an illusion built on government handouts, not actual business success. Retail investors are gambling on hype, not substance—a recipe for disaster.

Story

Tesla’s “profits” are a mirage, fueled by government handouts—not real business. Like a house of cards built on tax credits, it’s destined to collapse. Remember Enron’s creative accounting? Tesla’s playing the same game, just with green buzzwords instead of energy deregulation.

Their net income swings wildly, propped up by subsidies other tech giants don’t get. This isn’t innovation; it’s financial engineering. Main Street investors, blinded by Elon Musk’s cult of personality, are buying into a fantasy. When the credits dry up, reality will hit hard.

‣ Net Income: The money a company actually makes after all expenses, including taxes. ‣ Tax Credits: Government discounts that reduce a company’s tax bill.

Think 2008, subprime mortgages—complex financial instruments masking unsustainable risk. Tesla’s “profitability” is built on the same shaky ground. When (not if) the market corrects, expect a bloodbath. Any gains are likely fueled by speculation and hype, not genuine value. Like a Ponzi scheme dressed in a suit, it’s extracting money from the naive while the insiders cash out.

Advice

Don’t mistake hype for value. Investigate the source of a company’s profits, not just the number itself. Tesla’s reliance on tax credits is a massive red flag.

Source

https://www.reddit.com/r/wallstreetbets/comments/1inmin6/magnificent_eight_net_income_comparison/