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Tesla has to deduct the “cost” of issuing new shares for stock compensation like for their CEO. It’s not a cost as in they spent cash, but is deducted because
by pokerhobo 5y ago
Tesla has to deduct the “cost” of issuing new shares for stock compensation like for their CEO. It’s not a cost as in they spent cash, but is deducted because it lowers shareholder value. A better sense of their actual profit/loss is their free cashflow which is positive even after your deduct ZEV credit sales.
- hef19898 5y agoCash flow =|= profit. You can be cash positive and profitable (best case), cash positive and not be profitable (at least you won't go under automatically), cash negative and profitable (you face the risk of going bancrupt by running out of cash) or cash negative and not profitable (usually dead). Whatvyhe other poster did was diving into Tesla's sec fillings. Those show: Tesla is offering stock -> they still raise money Tesla is selling emissions certificates -> that explains most, if not all, of their profits. Not sure how new funding factors into their cash flow, and I am too lazy to look it up. It does seem so, that Teslas car business isn't enough to stand upon for now.