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He is only really annoyed with the shorts because there is truth in what they are saying. If he really was crushing it, and his company was raking in the money

by joobus 8y ago

He is only really annoyed with the shorts because there is truth in what they are saying. If he really was crushing it, and his company was raking in the money, he wouldn't care much about what the shorts are saying. As it is, his company is hemorrhaging cash and he doesn't know where the next cash infusion is going to come from.

manicdee 8y ago
On the flip side, he wants to build cars without having to play stupid financial games to satisfy investors each quarter. Tesla are going gangbusters, they will pay back debts and become a real company (ie: making profit) but the financial games where certain expenses are pushed or pulled between quarters to make the books look interesting get in the way of actually ramping up production.
- jacques_chester 8y ago
  Moving expenses from one to a quarter affects profit and loss, but it's a distinct thing from cash flow. The latter is the one that looks gloomy. No matter how rosy your income statement, if you run out of cash, the GAME OVER screen comes up and people laugh at the glowing biographies folks wrote about you and your company in $PREVIOUS_DECADE. And while your accounts payable will often deal with being fobbed off for a bit, it becomes harder to do this. And certain folks expect cash, now, and can force you to cough it up: foremost being the government, but also employees (hard to do things when people quit en masse) and key suppliers (if the electricity goes off, or the parts don't arrive, you have to shut down the line).
- shriver 8y ago
  Again though - these aren't things imposed by the markets. Time and again these impositions are imposed by Musk himself. He set the 5,000 car per week target, he missed it. The markets reacted when he set it, and they reacted every time he missed it. He also made the public statements about being cash flow positive and about taking on more debt. If you look at the real market the trend is clear: There has never in the history of the stock market ever been a time when investors were more willing to invest in money-losing companies to gamble on them hitting it big. Tesla is valued by the stock market as twice as valuable as the Ford Motor Company.
- coatmatter 8y ago
  > On the flip side, he wants to build cars without having to play stupid financial games to satisfy investors each quarter. It baffles me why he publicly listed Tesla in the first place if he didn't want to "play stupid financial games". Ok so he wants to take it private - is funding secured or not?
deleted 8y ago
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by joobus 8y ago

manicdee 8y ago

On the flip side, he wants to build cars without having to play stupid financial games to satisfy investors each quarter. Tesla are going gangbusters, they will pay back debts and become a real company (ie: making profit) but the financial games where certain expenses are pushed or pulled between quarters to make the books look interesting get in the way of actually ramping up production.

jacques_chester 8y ago
Moving expenses from one to a quarter affects profit and loss, but it's a distinct thing from cash flow. The latter is the one that looks gloomy. No matter how rosy your income statement, if you run out of cash, the GAME OVER screen comes up and people laugh at the glowing biographies folks wrote about you and your company in $PREVIOUS_DECADE. And while your accounts payable will often deal with being fobbed off for a bit, it becomes harder to do this. And certain folks expect cash, now, and can force you to cough it up: foremost being the government, but also employees (hard to do things when people quit en masse) and key suppliers (if the electricity goes off, or the parts don't arrive, you have to shut down the line).
shriver 8y ago
Again though - these aren't things imposed by the markets. Time and again these impositions are imposed by Musk himself. He set the 5,000 car per week target, he missed it. The markets reacted when he set it, and they reacted every time he missed it. He also made the public statements about being cash flow positive and about taking on more debt. If you look at the real market the trend is clear: There has never in the history of the stock market ever been a time when investors were more willing to invest in money-losing companies to gamble on them hitting it big. Tesla is valued by the stock market as twice as valuable as the Ford Motor Company.
coatmatter 8y ago
> On the flip side, he wants to build cars without having to play stupid financial games to satisfy investors each quarter. It baffles me why he publicly listed Tesla in the first place if he didn't want to "play stupid financial games". Ok so he wants to take it private - is funding secured or not?

deleted 8y ago

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