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> Tesla no longer seems to be facing a cash crunch in the near term. I agree these numbers are, essentially, a spectacular turnaround over the past 6 months fo
by jacques_chester 8y ago
> Tesla no longer seems to be facing a cash crunch in the near term.
I agree these numbers are, essentially, a spectacular turnaround over the past 6 months for which Tesla deserve enormous credit.
That said, current assets are $7.92 billion and current liabilities are $9.77 billion. It's one thing to have around three billion dollars of cash at hand, but not as great if you have three and half billion dollars of bills falling due soon.
Tesla's current ratio is below 1, they will need that positive cashflow to remain consistent to deal themselves out of debt in time.
- dragontamer 8y agoI'm not sure why this comment is being downvoted, but its true. Tesla's moment of profitability has come, but it was SUPPOSED to come Dec 2017. Or at least, by the original plans. Tesla's debt structure over the next year is complicated, with March 2019 convertibles coming in soon. But in either case, Tesla has to build $920 Million to pay back that loan... among many others in the coming years. Elon Musk really needs another round of capital raises, either stock offerings or bond offerings. If those are successful, then the company will be in a much better spot. Their cash-on-hand is very weak and is definitely a valid point of criticism at the moment.