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If I am doing my math right, and Tesla is burning 8-900M / quarter, I am not so sure they would need new cash. Even if they are only selling only 2500 / week (a
by Bedon292 8y ago
If I am doing my math right, and Tesla is burning 8-900M / quarter, I am not so sure they would need new cash. Even if they are only selling only 2500 / week (and I believe they hit 3500 now didn't they?) that is $125M / week at $50k each average. And I think it is currently higher that each. And once they hit 5000 / week that is $250M. Over the course of a quarter that would be $3.2B. Which would more than cover that loss of $8-900M.
Not saying they definitely won't, but it seems plausible to not need more cash.
- xkjkls 8y agoThat's assuming that each of those cars can be produced without any costs, which they require large amounts of raw materials and labor, and that Tesla also doesn't need to spend large amounts of capital on R&D to improve manufacturing or new product lines.
- otalp 8y agoTo be precise, they are having a net loss of 800 million a quarter. Their negative cash flow last quarter was over a billion. Even the biggest Tesla bulls, like Adam Jones of Morgan Stanley, expect Tesla to raise cash this year. I have not seen any major analyst say otherwise: to the contrary, all of them do say they need a major cash raise. Goldman Sachs thinks it should be in excess of 3 billion, and up to 6 billion.