Point 1-Wrong: they are now cash flow +. They emphatically said q3 will be cash flow +. News flash: we are in q3.I'm really curious how Tesla will be able to build factories in China and Europe given that they're still cash flow negative, they're still struggling on Model 3 gross margin, and they're not planning to refinance 1B in loans due over the next several months.
The China factory costs 5 billion by Tesla's estimate. Where does the money come from?
On the short side, it is stunning to see the equity markets react the way they have. The bond and CDS markets didn't flinch from their pre-earnings pessimism, while equity did.
Point 2-Wrong: they are not struggling with model 3 GM. Last quarter GM went positive: a fact. They will deliver 3-4x as many model 3 this quarter.