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Watching the share price today is like watching paint dry; however, you're in luck . . I have something much more exciting for you: Accounting.
(trying to solicit a response from the grouchy cat . . .you know who you are).
There were some discussions about Free Cash Flow (FCF) a few posts back.
FCF is Cash generated from business operations less spending on Capital Expenditures.
Here is Tesla's FCF for the last 4 quarters and my estimate for Q3 2021:
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With Free Cash Flow, Tesla is then:
- free to pay down debt
- free to buyback shares
- free to pay dividends
- free to purchase another company
- free to buy Bitcoin
- or free to add to their cash account
Here is how Tesla has used their FCF in the past and what I expect in Q3:
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As you can see, Tesla has used much of it's FCF to pay down debt and buy Bitcoin.
They raised cash from Equity raises in Q3 & Q4 2020.
My annual projections for FCF are:
$ 4b - 2021
$ 9b - 2022
$15b - 2023
$24b - 2024
There is only so much debt to be paid down; Tesla will be sitting on a pile of cash.