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Uh..."cash flow positive if investments and the credit part of debt is considered cash flow"? That sounds like a situation you'd really prefer not to be in. In
by marvin 5y ago
Uh..."cash flow positive if investments and the credit part of debt is considered cash flow"? That sounds like a situation you'd really prefer not to be in.
In fact, this is exactly what the market has recently realized separates Tesla from most venture-funded businesses.
- hef19898 5y agoThat was my point, VC-backed companies, some of them at least, cannot only postpone profitability but also positive cash-flow as long as VC money doesn't try up. Back to Tesla, 14.5bn $ are coming from issuance of stock and issuance of debt. Net free cash flow is 2.5bn, so even if it is not VC money Tesla seems to be living to huge extend from external funding, one way or the other.
- Closi 5y agoThat’s fine as long as the external funding is being used to invest in capital / production - see Amazon where their years being criticised for being unprofitable but just supported by external VC funds (if you ignored that the funds were being used to buy capital and expand) quickly turned into one of the most profitable companies in the world.