Tesla Inc Is Growth Over Profits And Investors Get That (NASDAQ:TSLA)Author: Mvusi NgubaneLast Updated: March 12, 2020 Jim Chanos “can suck on a Tesla Supercharger” as far as Erica Halsworth is concerned. Halsworth is an avid fanatic of the luxury EV maker and proud Model S owner. She left a comment in response to Chanos bashing the company last week. The Wall Street champion shared some thought-provoking comments, but his sentiments were hard to swallow for the ever-widening Tesla fan base. This report covers the unyielding bullishness in the eye Tesla Inc storm. While shares might be down, the fanfare thrown at the tech firm and its ambitions are in no shortage.Halsworths seems pretty upset about the whole thing, saying that Chanos’ claims are “far-fetched”. “Seriously, the man can walk up to a station, pull out a plug, and put his mouth on it,” she wrote. The Model S owner admits that Tesla’s business is prone to losses, according to her. However, she says it is “about laying down the foundation” for future profits.“Tesla is doing just that,” Halsworth asserted. She is confident that “profits will come and they will be great.”Jim Chanos breaks it down“Structurally unprofitable” were the words used by the Chanos last week. He is a renowned Wall Street juggernaut. The investor was describing Tesla Inc and its business model last week. In an interview with CNBC, the man admitted just how much he does not buy into the whole Tesla hype.Tesla Inc nasdaq:tsla gigafacoryThe company promised that it would already be profitable by now. Perhaps that is what irks Chanos the most. He considers the young automaker’s numerous assurances as way to keep investors on the edge of their seats.This should be a year where TSLA profits are at least within view, according to Chanos. The company promised so back in 2014.However: “Now is it supposed to be making money in 2020,” the analyst said. He is certain that Elon Musk and his EV business are just pulling investors along. Chanos belives 2019 will no doubt have Tesla Inc telling investors to look out for profits at a much later year.Chanos brought up several other deterrents. One, for instance, was the company’s buyout of SolarCity. The controversial merger opened up a loss of $1 billion per year, he said.Beyond that, the EV market is only widening. Chanos believes that the company’s leading Model S and Model 3 will soon find themselves up against products from automakers with actual money in their pockets. Tesla Inc’s stock according to Chanos, is pushed “by hopes and dreams”.Tesla Inc supporters chime inThe comments came flooding in defense of Tesla Inc. “Jim Chanos is wrong about Tesla,” wrote one reader, Geoffrey Bailey. “With a 27 percent margin on the Model S and Model X, and a target of 25 percent on the Model 3, the company could be profitable now if it slowed its growth.”Bailey goes on to write that the company is in a race to ensure it can handle the incoming competition. That means growth by all means. “When that growth slows, which could be 10 or more years from now, Tesla will be a very profitable company.”The reader further points out that the competition is “years behind Tesla”. And Tesla is not sitting around just waiting for them to catch up either. “Who [else] has Superchargers?” he asked. Bailey doesn’t see any other rival with a battery plant like the Gigafactory at its disposal either.Tesla is about growthAnother reader asserts that Tesla is about growth, much like other Elon Musk businesses. Their “immensely ambitious agenda” renders them “growth-at-all-costs” companies. Bernard says that being profitable is not a major part of the picture, “except inasmuch as it may help further growth.”Bernard’s comment points out Amazon worked in much the same way for years. The company, now with a stock price around $1,000, went years reinvesting its income into the business and revealing losses upon losses. “Nothing wrong with that, as evidenced by Amazon today.”As for competitionIn terms of rivalries, Tesla is far ahead of anyone interested in challenging it. One comment highlights how the industry was, and still is, all talk. There is not a single Western carmarker that is as serious about electric cars as Tesla. Today’s rivals have electric car as optional offerings, done in the name of inclusion and diversification.“None of them are even ready to commit to producing EVs at scale — it’s been all talk and minimal compliance so far.”The same goes for home battery and solar energy businesses. Tesla is putting things in motion faster than most competitors for home electrical storage and solar. “Tesla will have all of these fields to itself for at least 5 more years.”The general sentiment is that Tesla Inc. has time to remain unprofitable and grow itself some more. We are yet to learn if you feel the same way. Leave us a comment below.