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Their burn rate is incredible. If they run out of money and nobody is there to give them more, they file for bankruptcy.
by selectodude 9y ago
Their burn rate is incredible. If they run out of money and nobody is there to give them more, they file for bankruptcy.
- aquadrop 9y agoThey burn it that fast because it brings more money in the future and they have funds reserve. Their net loss is getting smaller proportionally to the revenue constantly. They could stop capital investments any moment and be profitable, but that would mean much slower growth later.
- jklp 9y agoNot sure that's the case as looking at this graph from The Verge, their revenues are growing but their losses are also getting larger proportionally to their revenues. https://www.theverge.com/2017/11/1/16593582/tesla-model-3-production-q3-largest-quarterly-loss https://www.theverge.com/2017/11/1/16593582/tesla-model-3-pr...
- prostoalex 9y agoThe burn rate numbers need more scrutiny as they include recurring expenses (salaries and materials) as well as one-time investments into Gigafactory and automated production lines for Model 3.