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The headline is misleading. Elon was just stating that the cash burn rate of the first quarter would eat up the newly invested capital in 10 months. He did nowh
by _ph_ 7y ago
The headline is misleading. Elon was just stating that the cash burn rate of the first quarter would eat up the newly invested capital in 10 months. He did nowhere say, that he expects the cash burn rate to stay constant, even without the savings he plans to implement. Q1 was a quarter with low deliveries - while more M3 were made than in Q4, less of them reached their buyers before the quarter end and thus a lot of them couldn't be accounted as a sale yet. All indications are, that in Q2 the total amount of delivered/sold cars will be quite a bit higher than in Q1, which also would improve the finances accordingly. Probably not enough to break even, hence the saving money initiative.