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> The company never sank. The company refreshed its financing. This is always possible, until it isn't. > That to me indicates that those with the means real

• skybrian 9y ago
  Brand power can result in more sales, though, which usually does increase cash flow? We don't know yet at what point they'll transition from being supply-limited to demand-limited. Tesla owners seem to be pretty forgiving of quality issues so far. We'll see how well that holds up.
  • jacques_chester 9y ago
    > Brand power can result in more sales, though, which usually does increase cash flow? Yes, when you can get to the point where cash changes hand (this may be a very different moment from the "sale"). If cash shows up too late, then it doesn't matter how much demand there is, the game is over. Endings from cashflow crunch can be very abrupt. A very dangerous time for many companies is under conditions of growth, because very often your outgoing cash happens now and your incoming cash comes later. Tesla has to pay its employees each month, has to pay its suppliers on time (or lose them), pay its utility bills etc etc. The outgoing cash does not stop going out. But the bulk of the cash comes in only when they can hand a car over. And that's not happening very fast right now. The monthly outgoings per-car appear to be negative.