sundaymorning
Active Member
As of January 2018 Tesla still has $3.4 billion in cash. 50% of that capital is expected to be spent on expanding the GF, while much of the other 50% will be spent on rolling out Supercharger networks, new service/ sales centers, Semi truck/ Model Y R&D, Tile roof/ solar, etc. If Tesla spends every dime they have without raising further capital, then the $3.4 Billion they started with this year will take them into 3rd Q 2018, right about the time where M3 ramp hits a steady rate of 5,000/ week to make them cash flow positive. So no, Tesla isn’t going to run out of cash anytime soon. Their cash position remains to be healthy, and my assumption is that they will raise capital between 2nd and 3rd Q to be comfortable (so they won’t be cutting it too close).
Elon has had around 40 rounds of capital raises between his venture at X.com/ PayPal, SpaceX and Tesla. He is 40 out of 40 for those capital raises which converts to an impressive 100% success rate in capital raises. He has mentioned to shorts before that you don’t want to bet against those odds, and yet the shorts ignore his warning every time (to their detriment). They are here again to spread FUD because they understand that their fortune are ONE capital raise away from being decimated (talk about playing Russian Roulette), arguably that ONE capital raise isn’t even necessary for Tesla to sustain operations.
If Tesla would just stop expanding, then their cash position will be in a much healthier place; however, Tesla is a beast and Elon understands he has leverage over the capital market. He can raise capital at will and has determined that he wants his company to grow in ludicrous mode. Which is why so many members here are citing the 50% YOY revenue in the billions. Right now no other company grows like this, it’s indeed profoundly breathtaking. Take for example the 500,000 reservation holders that deposited for the M3, at an ASP of $42,000 would mean $21 billion in revenues.
Elon has had around 40 rounds of capital raises between his venture at X.com/ PayPal, SpaceX and Tesla. He is 40 out of 40 for those capital raises which converts to an impressive 100% success rate in capital raises. He has mentioned to shorts before that you don’t want to bet against those odds, and yet the shorts ignore his warning every time (to their detriment). They are here again to spread FUD because they understand that their fortune are ONE capital raise away from being decimated (talk about playing Russian Roulette), arguably that ONE capital raise isn’t even necessary for Tesla to sustain operations.
If Tesla would just stop expanding, then their cash position will be in a much healthier place; however, Tesla is a beast and Elon understands he has leverage over the capital market. He can raise capital at will and has determined that he wants his company to grow in ludicrous mode. Which is why so many members here are citing the 50% YOY revenue in the billions. Right now no other company grows like this, it’s indeed profoundly breathtaking. Take for example the 500,000 reservation holders that deposited for the M3, at an ASP of $42,000 would mean $21 billion in revenues.
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