Tesla Motors Club
I looked at Q1 2015 CC and there were interesting things
From Q1 2015 conference call
Elon Musk
"I think we'll pass on sort of answering super-detailed questions about the X ramp. But the thing that really matters is not like when do the first deliveries of the X occur, but rather when do significant deliveries of the X occur. And for the S, we had quite a long ramp from – we're like six months from the very first deliveries to a significant volume. We're trying to compress that to maybe like two months or three months at most. I'll cut that in half or more for the X. And we want to make sure we're really delivering a product that has been thoroughly validated in hot and cold weather and through millions of miles of travel and everything."
Concidering, that it has now been almost four months since launch Elon's "two months or three months at most" doesn't hold.
That CC gives also other priceless quotes;
Deepak Ahuja - Chief Financial Officer
We do expect to be free cash flow positive in Q4. That doesn't change. And as we go along, clearly, we are optimizing for efficiency, which results in increase of our finished goods inventory. That makes sense for us to then establish some asset pipelines or credit which is backed by our finished goods inventory or raw materials. So we'll take those actions to make sure we have a solid balance sheet.
Elon Reeve Musk - Chairman & Chief Executive Officer
Yes. Things are looking pretty good for Q4. I think it's hard to predict full quarter exactly because that whole quarterly boundary and where does the exponential ramp of production fall exactly on that side of Q4 boundary. But I think it's extremely likely that cash flow is really good at the end of Q4.
From Q1 2015 conference call
Elon Musk
"I think we'll pass on sort of answering super-detailed questions about the X ramp. But the thing that really matters is not like when do the first deliveries of the X occur, but rather when do significant deliveries of the X occur. And for the S, we had quite a long ramp from – we're like six months from the very first deliveries to a significant volume. We're trying to compress that to maybe like two months or three months at most. I'll cut that in half or more for the X. And we want to make sure we're really delivering a product that has been thoroughly validated in hot and cold weather and through millions of miles of travel and everything."
Concidering, that it has now been almost four months since launch Elon's "two months or three months at most" doesn't hold.
That CC gives also other priceless quotes;
Deepak Ahuja - Chief Financial Officer
We do expect to be free cash flow positive in Q4. That doesn't change. And as we go along, clearly, we are optimizing for efficiency, which results in increase of our finished goods inventory. That makes sense for us to then establish some asset pipelines or credit which is backed by our finished goods inventory or raw materials. So we'll take those actions to make sure we have a solid balance sheet.
Elon Reeve Musk - Chairman & Chief Executive Officer
Yes. Things are looking pretty good for Q4. I think it's hard to predict full quarter exactly because that whole quarterly boundary and where does the exponential ramp of production fall exactly on that side of Q4 boundary. But I think it's extremely likely that cash flow is really good at the end of Q4.