Do they have a function to predict in advance if the next model is going to be profitable?

If not, this seems like a recipe for bankruptcy. You are always investing more than you're making, right up until the day you don't make it back. Whether that's next year or in ten or twenty years. It's basically impossible to do it forever - there simply isn't enough profit to be had in the world if you go forward enough orders of magnitude. How will they know when to hop off the train?

Back in my day, we called this a pyramid scheme.