Burning a billion a quarter, that won't last long.
It doesn't need to last long. Unlike small electronics companies, Tesla will be selling 100's of thousands of cars when in full production. They have lots of cash on hand.
"While raising cash isn?t critical to releasing the Model 3, it would probably be wise, Musk said on the Feb. 22 earnings call."
They are about to be shipping the model 3 which they have 373,000 reservations on, that's $373 million in cash!
"Tesla produced almost 84,000 vehicles in 2016 and plans to make half a million in 2018, then 1 million in 2020."
Unless the wheels start falling off, I think they are going to make a go of it and do quite well.
The one good piece of news (for me) Musk-wise, is that the Buffalo solar plant will be mostly run by Panasonic, with Musk just buying the solar panels. (this is a bit old by my first hit.)
George H.
When the hell are the suckers going to get wise to this bs-artist?
When they have to start paying for replacement battery packs?
When he runs out of cash?
Why would he run out of cash when they will start bringing in 30+ billion dollars a year in another couple of years? He has the cash to get the new model 3 into production and it out for more cash as a margin.
I know you hate Musk, but for no reason. He is a smart man... make that savvy, and he will be selling cars for some time to come.
When he announced the next public offering instead of the stock going down because the shares would be diluted, it went up. That speaks volumes.
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