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I also see the quarterly cash burn of $1.054 billion, and also don't understand how the company could reduce capex by $0.4 billion this year at the same time it
by cs702 9y ago
I also see the quarterly cash burn of $1.054 billion, and also don't understand how the company could reduce capex by $0.4 billion this year at the same time it aggressively ramps up Model 3 production... seems optimistic.
Looks like Tesla will need to raise more cash fairly soon.
- dmode 9y agoThat is fairly simple. The main CapEx is installing a new line, setting up supply chain, acquiring robots, programming robots. Once you are done with that, you then just need to crank out cars.
- blowski 9y ago> you then just need to crank out cars To my ignorant but cynical ears, that sounds like a developer saying “then we just need to deploy it”.
- 1123581321 9y agoMore like saying that once you have the chairs, desks and computers, you just need to write the software. The developer salaries are operating expenses (opex.)
- adrianratnapala 9y agoIsn't that the point though? That for building this kind of plant, you spend the money up front and then spend a lot of time, but less money, actually making it work. From the outside that will look like a reduction in CapEx (once the up-front spend is done) followed by a "mysteriously" cheap ramp-up in production volume.
- danmaz74 9y agoYes. Deploy at internet-scale while debugging a completely new approach. Which could work - or not.
- pooya13 9y agoI saw a chart showing the same periods from S and X production. Apparently the highest capex comes right before ramp up since they have bought new equipment, tuned the process etc. As those issues are resolved you need less and less capex. But I am not an expert.
- akvadrako 9y agoElon promised they wouldn't need to raise cash this year.
- Analemma_ 9y agoElon has promised a lot of things that didn't happen.
- Nokinside 9y agoElon has promised things that didn't happen quarter after quarter. Nobody trusts forward-looking statement from Tesla anymore. I say that Tesla has to raise money in Q4 and you can trust me more than Elon.
- agumonkey 9y agorandom thought: they said most of the cash was to start the gigafactory, now that they've changed to expansion from "near"(c) full production, maybe they really need none or near none ?
- bjl 9y agoSure, and why in the world would you trust him? He's literally never met his guidances.
- akvadrako 9y agoThat's my point.