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You forgot Tesla's $3.3 billion in inventory. Their liabilities are greater than their assets to the tune of $1.7 billion. That plus the $4.2 billion in bonds i

You forgot Tesla's $3.3 billion in inventory. Their liabilities are greater than their assets to the tune of $1.7 billion. That plus the $4.2 billion in bonds is $5.9 billion in debt. Subtract the $3 billion in cash and they'll need to come up with $2.9 billion between now and March of 2022, which is $.2+ billion per quarter. Edit - Double counted cash. It should be $.4+ billion per quarter.

dragontamer 8y ago
I didn't mean to have a complete list. My only point is that "its complicated". There's a lot of moving parts here. Full details can be found on page 8 of the linked PDF. > Their liabilities are greater than their assets to the tune of $1.7 billion. That plus the $4.2 billion in bonds is $5.9 billion in debt. You're double-counting. Liabilities include debt. No need to double-count. > Subtract the $3 billion in cash You're double-counting, again. Assets include cash. Lets do this once, and correctly, shall we? * Total current assets: $7,920,491 (thousands) * Total current liabilities $9,775,324 (thousands) That's a total shortfall of $1.85 Billion. Again, page 8 of the PDF provides these numbers. > they'll need to come up with $2.9 billion between now and March of 2022, which is $.2+ billion per quarter. Elon Musk has raised capital ever year, roughly to the tune of ~$1 Billion/ year. Either by convincing people to take on more debt for the company... OR by selling more shares out. The only issue is if a recession hits between today and then, which would close capital markets.
- omgwtfbyobbq 8y ago
  Good point! Still, Tesla went from -$520 million to +$516 million in non-GAAP net income, and that's with the vast majority of 3s being sold in the US. Expanding to Canada and launching in Europe should be very profitable. In terms of capital raises, this SA article posits why Tesla may not need as much capital going forward. https://seekingalpha.com/article/4100718-teslas-unusual-source-cash https://seekingalpha.com/article/4100718-teslas-unusual-sour...

dragontamer 8y ago

I didn't mean to have a complete list. My only point is that "its complicated". There's a lot of moving parts here. Full details can be found on page 8 of the linked PDF. > Their liabilities are greater than their assets to the tune of $1.7 billion. That plus the $4.2 billion in bonds is $5.9 billion in debt. You're double-counting. Liabilities include debt. No need to double-count. > Subtract the $3 billion in cash You're double-counting, again. Assets include cash. Lets do this once, and correctly, shall we? * Total current assets: $7,920,491 (thousands) * Total current liabilities $9,775,324 (thousands) That's a total shortfall of $1.85 Billion. Again, page 8 of the PDF provides these numbers. > they'll need to come up with $2.9 billion between now and March of 2022, which is $.2+ billion per quarter. Elon Musk has raised capital ever year, roughly to the tune of ~$1 Billion/ year. Either by convincing people to take on more debt for the company... OR by selling more shares out. The only issue is if a recession hits between today and then, which would close capital markets.

omgwtfbyobbq 8y ago
Good point! Still, Tesla went from -$520 million to +$516 million in non-GAAP net income, and that's with the vast majority of 3s being sold in the US. Expanding to Canada and launching in Europe should be very profitable. In terms of capital raises, this SA article posits why Tesla may not need as much capital going forward. https://seekingalpha.com/article/4100718-teslas-unusual-source-cash https://seekingalpha.com/article/4100718-teslas-unusual-sour...