One of the key principles of money is ‘opportunity cost.’ It means that when I buy something, I have to give up something else in return. We think we buy because we need something, but we often forget that we could buy something else instead. We rarely consider ‘opportunity cost’ when making a purchase. We do not compare other values against our needs. Buying something means giving up something else, but we often don’t realize it. When we spend money, we should also consider the ‘opportunity cost’; yet, in reality, we aren’t trained to do so. By making a purchase, we bypass the value comparison that may not offer any additional benefits. Maybe it’s because we lack knowledge, or perhaps the idea isn’t appealing. - Joseph’s “just my thoughts”
Tesla earns revenue through car sales, but its real profits come from other sources. Although Hyundai-Kia Motors sells more cars annually than Tesla, it does not have the same profit structure, which is unique to Tesla. Tesla capitalizes on environmental assets by selling carbon credits each year. While the company experiences overall losses in car sales, the sale of these carbon credits results in surplus income, positively affecting its stock price. Traditional automakers contribute to Tesla’s profitability by purchasing cars and paying fines for carbon emissions. This dynamic is also a key reason why Tesla establishes operations in regions with strict pollution regulations. - Joseph’s “just my thoughts”