3 ms·

1. I don't know if that math is entirely solid. They got 2.4 billion and in the past quarter ran though 200 a month, thus 10 months before they're empty. But th

1. I don't know if that math is entirely solid. They got 2.4 billion and in the past quarter ran though 200 a month, thus 10 months before they're empty. But that's not exactly how it works, for all I or anyone knows the last quarter was very tooling heavy and they chose to pay costs all upfront instead of amortize costs. IDK. 2. I work in automotive. I was a the room with 3 VPs from a BIG 3. They weren't threatened by Tesla (right or wrong), they merely agreed that some day soon Tesla was going to learn "how hard it is to build a real car". Knowing the backend, and understanding the difference between acceptable failure rates on say a McLaren 570 vs a Toyota Corolla. What they meant was it's one thing to ship a few cars, it's another to get where Tesla seems they need to be to get profitable. Just an anecdote.

deleted 7y ago
[deleted]
gamblor956 7y ago
for all I or anyone knows the last quarter was very tooling heavy and they chose to pay costs all upfront instead of amortize costs. IDK. Many people do know...Depreciation is subject to specific tax and accounting rules. While for tax purposes some (but not all) of Tesla's spending is immediately depreciable, for accounting purposes, none of it is, so their tooling costs must be depreciated over the useful life of the equipment. Depreciation also isn't relevant to a discussion of cash flow, as depreciation is merely an abstract number representing estimated wear and tear.
- SlowRobotAhead 7y ago
  I said amortization and tooling. Not depreciation. And the point is, it’s foolish to assume that what happened last quarter is what will happen this quarter. If you don’t think so, please show me the billions you’ve made in the stock market.
  - gamblor956 7y ago
    Amortization is simply depreciation of intangible assets... And with Tesla and Elon Musk especially, it's extremely foolish to assume that Tesla will meet any of the benchmarks that Elon has ever set...since they never have. Right now, Elon is saying they have 10 months until cash runs out. And knowing Elon, that's almost certainly an overly optimistic prediction since it doesn't take into account the increased burn rates necessary to launch the Model Y or the self-driving taxi fleet, so less than 10 months. If Tesla doesn't raise additional capital by the end of 2019, they won't see the end of 2020 as a going concern.

deleted 7y ago

[deleted]

gamblor956 7y ago

for all I or anyone knows the last quarter was very tooling heavy and they chose to pay costs all upfront instead of amortize costs. IDK. Many people do know...Depreciation is subject to specific tax and accounting rules. While for tax purposes some (but not all) of Tesla's spending is immediately depreciable, for accounting purposes, none of it is, so their tooling costs must be depreciated over the useful life of the equipment. Depreciation also isn't relevant to a discussion of cash flow, as depreciation is merely an abstract number representing estimated wear and tear.

SlowRobotAhead 7y ago
I said amortization and tooling. Not depreciation. And the point is, it’s foolish to assume that what happened last quarter is what will happen this quarter. If you don’t think so, please show me the billions you’ve made in the stock market.
- gamblor956 7y ago
  Amortization is simply depreciation of intangible assets... And with Tesla and Elon Musk especially, it's extremely foolish to assume that Tesla will meet any of the benchmarks that Elon has ever set...since they never have. Right now, Elon is saying they have 10 months until cash runs out. And knowing Elon, that's almost certainly an overly optimistic prediction since it doesn't take into account the increased burn rates necessary to launch the Model Y or the self-driving taxi fleet, so less than 10 months. If Tesla doesn't raise additional capital by the end of 2019, they won't see the end of 2020 as a going concern.