The biggest question for Tesla is whether the company can make steady profits on its cars

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The biggest question for Tesla is whether the company can make steady profits on its cars
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Analysts are worried that Tesla demand is fading — but they're mistaking demand for demand growth.

growth already has it in a commanding position in the US luxury market — the company completely dominates the highly profitable luxury EV space.

In the past, Tesla has raised capital at around the $250-per-share level, so for Jonas, the clock has started to tick in 2019.demand growth. That's because is matters little whether a carmaker produces electric or gas-powered vehicles; the economics of the business are well understood. For Tesla bulls, thinking of Tesla as a car company is a downer.

There aren't enough new-car buyers in the US for Tesla to continue minting new market share at its current pace, and it's doubtful that it can conjure big demand growth in Europe or China. This situation should lead Tesla investors to concentrate on margins rather than growth.

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