@The Accountant could you help us understand Tesla's debt situation?
Gary Black says Tesla has 16 Bn cash and 8 Bn debt. I think that 16 Bn may not include the Bitcoin position which is currently worth about 3 Bn or so I was told.
In any case the more confusing part - for me - is the debt listed on page 22 of the balance sheet.
"Current portion of debt and finance leases shows" 1.7 Bn, "Debt and finance leases, net of current portion" shows 6.4 Bn (and has been decreasing very nicely!). So do I add these up and is that how i get total debt (8.1 Bn, probably what Gary was referring to)?
But then they break this debt down, and "Vehicle and energy product financing (non -recourse)" shows 4.5 Bn. If this is the leasing amount provided by financial partners (banks) than I agree with those who say this should not really count as the company's debt as the customer who leases the vehicle pays this monthly, plus if they default, quit the lease, or total the car, tesla can sell the car or collect insurance, thus this debt is 100% (well, ok maybe 90%) covered all the time.
This would only leave "Total debt excluding vehicle and energy product financing" at 2,1 Bn. Is that all? Does Tesla really only have 2,1 Bn debt vs 16 Bn (+3?) in cash?
In either case the current junk rating is ridiculous, the question is how ridiculous.
Thanks in advance!