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$250mil sounds a lot - until you remember they currently burn through $400mil of cash in a month
by gregornobis 9y ago
$250mil sounds a lot - until you remember they currently burn through $400mil of cash in a month
- tdiggity 9y agooh please. they're putting money into R&D and into the ramp up. Your statement makes it sound like they're using the money to wipe their @$$es. No, they're putting the money to work. And if the analysts and shareholders didn't believe that, the stock would tank.
- gregornobis 9y agoVery true. Belief - not actual results - is what is behind Tesla's valuation.
- frogpelt 9y agoIs Tesla that different from Amazon 15 years ago? Net income was flat but the revenue kept going up.
- Danihan 9y agoThey also just laid off a ton of people, so maybe that burn rate is going to lower quite a bit.
- sf_rob 9y ago$400M a month would be equivalent to ~20k full time engineer's total compensation, so I doubt layoffs will put a serious dent in it.
- Danihan 9y agoGood point.
- greglindahl 9y agoThey laid off "a ton of people" but a small fraction of their workforce, not affecting their burn rate much. Watch out for those financial press headlines, Tesla is one of the most shorted stocks out there.