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Tesla's debt servicing cost 600 million yearly (Bill Cunningham estimates). It is producing Model 3s at a pace of 4k weekly (according to Bloomberg). Each repre
by sergiosgc 8y ago
Tesla's debt servicing cost 600 million yearly (Bill Cunningham estimates). It is producing Model 3s at a pace of 4k weekly (according to Bloomberg). Each represents 15kUSD in gross profit (according to Munro). It takes ten weeks to service the yearly debt using current Model 3 sales.
If these numbers are right, once Tesla proved to be able to produce Model 3s, it became financially stable. It will easily be able to roll-over bonds.
- jsight 8y ago> Each represents 15kUSD in gross profit (according to Munro). I was with you on every part but this. It is better to use the company's SEC filings than the Munro report for estimating cash flow per vehicle.
- sergiosgc 8y agoGood point. It's a different number, but a relevant datapoint anyhow. The last filing shows a gross profit margin of 15%. It's a different number because it includes cost of the sale infrastructure. Unfortunately, it's for the quarter ending in June, so the volume of model 3 is still not very relevant against the other models.