Economic situation

[Agon]

I am waiting for my LR Rwd.
These sort of news really worry me...
Musk says Tesla will be out of money in 10 months without ‘hardcore’ changes

 

[MarsEV]

I remember when Space X was on the verge of bankruptcy also and Elon moved money from Tesla into Space X to save it; now that space x got all those government contracts let’s hope he transfers some money into Tesla to keep the lights on. Also I heard Apple was considering purchasing Tesla.

 

[Leafdriver333]

10 months is a very long time compared to last year when Tesla was going to be bankrupt in weeks.

Tesla needs to have a flash sale on autopilot and FSD to raise money.

 

[mongo]

I am waiting for my LR Rwd.
These sort of news really worry me...
Musk says Tesla will be out of money in 10 months without ‘hardcore’ changes

No,
he said that even though the $2.4 Billion they just raised seems like a lot of money, if you divide it by the Q1 loss rate, it would only last 10 months.
Simple math to make a point, not a prediction on their future financials.
Full text here: Read the email Elon Musk sent to Tesla employees calling for 'hardcore' control of expenses

 

[Tam]

...These sort of news really worry me...

You are about 16 years late for the worries!

I listened to one of the presentation about the very early days when Tesla wanted to get an office lease in Detroit and the landlord looked at the financial sheet and said that Tesla would be out of cash in something like a few months.

But Elon Musk chuckled to himself that the landlord didn't realize that it's not in a few months, it's in a few weeks!

It's expected of a growing company with the emphasis on spending money for growth since 2003 or the past 16 years, not just now!

You are about 16 years late for the news!

 

[James88]

10 months is a very long time compared to last year when Tesla was going to be bankrupt in weeks.

Tesla needs to have a flash sale on autopilot and FSD to raise money.

If they flash sale I'll buy a model 3 in an instant lol. Been holding off since 6k extra on an LR RWD bring that's cost up quick when financing!

 

[glide]

I remember when Space X was on the verge of bankruptcy also and Elon moved money from Tesla into Space X to save it; now that space x got all those government contracts let’s hope he transfers some money into Tesla to keep the lights on. Also I heard Apple was considering purchasing Tesla.

That is not how government contracts work.

 

[mongo]

That is not how government contracts work.

Or history.
Elon dumped all his money into both SpaceX and Tesla knowing they both might fail instead of putting it into only one to increase the chance of success. He had to borrow from friends for rent afterward.
Twitter

 

[TSLA_Hopeful]

It's a huge piece of FUD. I'll explain why.

First, there is a huge discrepancy between profits and cash flows. Profits are really about long run sustainability while cash flows are immediate and short term. Secondly, cash flows are different from profits in that non cash expenses like depreciation and amortization heavily factor into profits, while on a cash basis it's water under the bridge. In the long run, yes, Tesla does need to be profitable. But in the short run, no they are nowhere close to danger and in fact this next quarter will help significantly pull them out of any such dangers financially.

What Elon is saying to the team is that we got to get our *sugar* together on a cost basis, and here's XYZ reasons we need to do this. His fault is he shouldn't be using those terms to scare the team. If saving cost is necessary, they will do it. Doesn't help to have Elon scare the whole world into forcing them to do it.

For those who are still unsure. There is absolutely no problem financially. That I guarantee. Elon is just using a classical parenting technique to get the rest of Tesla in shape. Shouldn't have done it but you shouldn't worry about Tesla's sustainability.

 

[Dana1]

I am waiting for my LR Rwd.
These sort of news really worry me...
Musk says Tesla will be out of money in 10 months without ‘hardcore’ changes

Musk isn’t a particularly good CEO but he seems to have access to capital markets. It’d be nice to see him hire a COO as a hardcore change.

 

[commasign]

Remember Elon likes to use hyperbole to make a point. Tesla isn’t literally going to run out of money in 10 months.

 

[Sregor]

What Elon is saying to the team is that we got to get our *sugar* together on a cost basis, and here's XYZ reasons we need to do this. His fault is he shouldn't be using those terms to scare the team. If saving cost is necessary, they will do it. Doesn't help to have Elon scare the whole world into forcing them to do it.

Well in my company they just call it "Fit For Growth" program. This sounds much better.

 

[OCR1]

I don’t know if there is any truth to any recent Apple rumors. They did talk over a year ago but I haven’t heard anything since. But if it did happen I think it would be good for everyone. Apple has a lot of cash in the bank and a very senior management team. They could add some real stability to Tesla. I’m just not sure Elon could handle it.

 

[Sophias_dad]

10 months is a very long time compared to last year when Tesla was going to be bankrupt in weeks.

Tesla needs to have a flash sale on autopilot and FSD to raise money.

I think what they REALLY need is to sell the P software upgrade to current AWD owners

 

[ZoomsansVroom]

In some ways, Tesla is doing something very creative, not just in cars, but in manufacturing.

Did they ever solve their executive churn issue? If not, that's a cultural issue which needs to be fixed. Then, they do need some experienced durable goods engineers, and to focus on reducing the error rate in their manufacturing. (And that will probably only happen once they get less dependent on Chinese manufacturing. Lots of surmise, based on friends who were recruited, and passed, years ago/my experience in manufacturing in a totally different industry.)

 

[golfpilot]

I’ll give them $5000 right now if they uncork my Dual Motor to Performance

 

[Leafdriver333]

Yes, Tesla needs to tap into all those who already own the car and who are waiting for upgrades via software purchases.
AP, FDS, Performance, Summon, Rear seat heating, and so on.
They need to make these available individually even for a short period of time at special pricing and people will buy them.

 

[MarkBrokeIt]

Remember Elon likes to use hyperbole to make a point. Tesla isn’t literally going to run out of money in 10 months.

It's Elon Time, so that's at LEAST 36m, probably longer.

 

[Mr X]

Tip: Don't read the comments on that post


Bunch of dimwits

 

[dmurphy]

Look, I know multiple Fortune xx companies that are wildly profitable, yet are going through some massive cost rationalization efforts. Tens of thousands of layoffs, huge cost cutting across the board, and yet, gross margins in the 50%+ range.

Common. Cost cutting isn’t a sign of impending doom - not by any means.