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>Before claiming he is stupid, you need to read the balance sheet Before you tell someone they need to read the balance sheet, you should read the balance shee
by tway901010 9y ago
>Before claiming he is stupid, you need to read the balance sheet
Before you tell someone they need to read the balance sheet, you should read the balance sheet.
Tesla has $3.5BB in cash, which they are burning through at the rate of almost $1BB a quarter, and have $4.1BB in accounts payable. Those are "bills", and their cash doesn't cover that amount, let alone the long-term debt payments.
They've been accumulating cash by letting their bills pile up; this figure grew over $1BB quarter over quarter.
- anilshanbhag 9y agoAccounts payable is a rotating line i.e. there is turnover. The first X gets paid and a new X comes in. It did not grow $1B qoq. The burn rate of of $1B+ would need to go to 0 to be called profitable + cash flow positive. Profitable => Net income > 0; cash flow positive => including capex net cash flow into business > 0.