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> This thinking doesn't appreciate that once the Model 3 manufacturing system is paid for most of that capital expenditure will cease. That's not how this work
by skgoa 9y ago
> This thinking doesn't appreciate that once the Model 3 manufacturing system is paid for most of that capital expenditure will cease.
That's not how this works. You can't just stop investing in capital. Especially not when you have promissed to produce a semi, a Roadster 2.0 and a Model Y, the production capacity for none of which exists right now.
- sunstone 9y agoThe semi and the Roadster are low volume products that will take no where near the investment in infrastructure for their manufacture as the model 3. The model Y maybe higher volume and require more capex but it's unlikely to start until the model3 manufacturing has been sorted out and its cashflows have become steady and predictable. That's why Musk can say there will be no more capital raises for Tesla this year.