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>Tesla is burning $4.2 billion per year now. Where is this number is coming from? Their 2017 loss was around 2 billions, half of what you say.
by nopriorarrests 9y ago
>Tesla is burning $4.2 billion per year now.
Where is this number is coming from? Their 2017 loss was around 2 billions, half of what you say.
- Nokinside 9y agoIt comes from Barclay's analysis (they are very bearish). Model 3 is not small volume luxury car as previous models. They are investing wast sums for large scale production. Burning trough vast amounts of cash is OK only as long as the production volume ramp up really happens in limited time frame and quality and recall numbers are similar to Audi 4A. Tesla must ramp up the production volume within a year or Tesla is financially in the ropes. If Tesla pays back debt $1000 for every car it sells. It must sell 4 million cars to pay this year's projected cash burn. Tesla made a bet that it can become large car manufacturer with Model 3, there will be no second changes.