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Why is this being downvoted? The only reason FCF was generated was because they had a lot of inventory undelivered that was produced in Q1 that got delivered in
by martinald 7y ago
Why is this being downvoted? The only reason FCF was generated was because they had a lot of inventory undelivered that was produced in Q1 that got delivered in Q2 instead. This isn't a sustainable way to generate cash.
There is now $11bn of debt and $4bn of accounts payable on the balance sheet. It's costing not far off $1bn a year to service that debt, plus they are also very reliant on capital markets to roll over this debt every year or so. If there was a significant decline in corporate debt markets and Tesla couldn't roll the debt over, they would be out of cash very quickly (regardless of the losses).