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Where is this cash coming from?

• deleted 8y ago
  [deleted]
• toomuchtodo 8y ago
  > Tesla reported a $312 million profit for the three months that ended Sept. 30, thanks to a surge in production and sales of its Model 3 sedan. The company has long promised that the model would help make electric vehicles and Tesla itself a mass-market phenomenon. > Tesla ended September with $3 billion in cash compared with $2.2 billion at the end of the previous quarter. The company generated $881 million in free cash flow — cash produced through operations less capital expenditures. “The cash-flow number is impressive,” said David Whiston, an auto analyst at Morningstar. “That’s a lot of cash for a company their size.” Disclaimer: I own a Tesla and a chunk of TSLA stock. https://www.nytimes.com/2018/10/24/business/tesla-third-quarter-earnings.html https://www.nytimes.com/2018/10/24/business/tesla-third-quar...
• xbmcuser 8y ago
  80k cars x 45k avg price is around $3.2 Billion cash coming in a quater. Usually they get 2-3 months credit from suppliers. So unless Tesla spends $2-3 billion at once or the demand for its cars drops dramatically the crash crunch is unlikely to come. Tesla is selling each car at a profit so unlike tech unicorns more sales doesn't mean bigger loss.