Tesla stock and valuation is rising, that's the situation. It's rising in defiance of common sense, in a way . . because so far there has been no annual profit.
A group of engineers started the company in 2003 to make performance electric cars that would be fun to drive, and they've done that.
But investors by definition put their money into projects that they think stand a very good chance of making money. And in the 17 years Tesla has existed, they have yet to make an annual profit.
Market Watch reports Tesla's annual financials since 2015 here. Gross Income has gone from ~$100 million (2015) to ~$4 billion (2019). But Net Income has been in the red each year, standing at $862 million at the end of 2019.
Yet it's the highest valued car company in America. Like I said Monday, Tesla is a phenomenon.
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