Tesla Will Run Out Of Cash By Year End If There Isn't ANOTHER Infusion

If they turn a profit in Q3/Q4 as they are advising to investors, it won't be needed. They still have over $3B cash on hand and at $13-14B of revenue per year they can still borrow another $4B or so if needed.

I don't think it would be ideal to borrow more or do a dilution so soon. Let the 3 get to scale, maximize the stock price, then borrow if needed to scale up internationally to Europe and China.

THAT is not the problem - even the money is not the immediate problem. THey owe so much that a few billions more is likely not to be a problem. BUT


EVERYDAY that passes that they do not have a solution to their production problems MEANS competition from real Viable Mass Market Manufacturers who will not have that problem coming to market with cars to compete with Tesla from every level. In the past - it was the multitude of dealers that made a difference - because people tend to buy NEAR where they live - and this would be the case especially for service (NOT too many private EV garages). But Tesla has steadfastly stuck to its limited outlet - limited service model - which is - in the end - what will take it down.

THere are several manufacturers - especially in Japan - who embraced Hybrids - but not EVS - and they might be able to use the Tesla knowhow - but every day - Tesla is worth less and less.

@Tom In the places where EVs are really selling, they have tons of stores and service centers. There are 8 alone in the Bay Area, more than several luxury car brands. Sales/demand really isn't their problem, it's manufacturing.

If you've read my historic posts, I've frequently said this is a way of life for Tesla Motors. Tesla depends on regular cash infusions from inventors in the form of selling (and diluting) shares, and that one unsecured bond offer (AKA "junk bond"), which last time I heard, was under water just weeks after initial offer.

This system of getting the public to pour money into Tesla will continue, so long as there are enough Tesla Faithful to buy the new share and stock offerings. Better this -- a voluntary "Tesla Tax" -- than using real taxpayer money and throwing that at Tesla.

Meanwhile, other automakers and going gangbusters on EVs, so all is not lost for EV fans if Tesla collapses.

Flamethrower was not a Tesla product.

Gents, would Tesla collapse without the absurd 7500.00 tax credit from FEDGOV?

We'll find out Jan 1st, 2019 when the federal rebate expires for Tesla. It will still be available for the legacy car makers.

Would hit sales of cheaper cars more.

Tick Toc Tick Toc...time is running out for Tesla. Their market lead is about to run out and the big boys will outspend them, bring more models to market, with greater reliability, quality and service. It was a good run while it lasted but Musk spread himself and the money too thin across too many developmental projects. The auto business chews up capital like few other industries and managing cash flow is critical. A capital infusion is possible but at what cost?

Perhaps we should start a "Dead Pool"? https://en.wikipedia.org/wiki/Dead_pool

[No, not the Marvel Movie, the Clint Eastwood one that is famous for Clint uttering the phrase...."..Opinions are like A**holes, everyone has one.." ]

My entry in the Dead Pool is March 2019 - which is about two months after the 1/31/2019 release of Tesla's 10K where we will see if the auditor questions Tesla's ability to "continue as a going concern". Once that happens, its over.

My Entry - Tesla files Chapter 11 in March 2019, converts to a Chapter 7 (liquidation) by September 2019.

Any other entrants in the Tesla "Dead Pool" ?

Seems like the death prediction is always just one year away.

In the above photo of Musk, they asked him to you have any of your OWN MONEY to put into Tesla. "Hell no!" was his answer.

If you knew the story behind Tesla and SpaceX you would actually know how ridiculous that comment is. He put ALL of him money into these two companies. The Boring company raised $113M this month, $100M was Elon putting his money where his mouth is.

This is not even a sentence, or 2.

It is statistically safer to drive with Autopilot than without. Tesla is releasing their safety logs quarterly going forward, announced today.

Time to find a buyer.

The name is worth something even if the cars are total garbage. Ford could easily create higher quality EVs than Tesla, but the same cars as Lincoln EVs would not be met with the same enthusiasm as yet another Tesla with egregious quality flaws. Either Ford or GM needs to buy Tesla solely for the name.

The name is bought only in the context of a liquidation under Chapter 7 of the bankruptcy code. GM/Ford do not want the warranty liabilities (nor do they want the "Liability" liabilities - i.e. autopilot continuing to kill people).

The name will be the last thing sold, and it will go for the millions (i.e. $20 to 50 million).

I might disagree with you because this is the same scenario as GM buying SAAB and Hummer - lots of hype about "great names" but in the end, nobody in business cared because there weren't enough customers who cared about the cars because by the end (parallel to the Model 3) the cars sucked and ruined the brand equity.

Tesla's quality problems are doing the job of ruining its brand equity as we speak.

@mre30 if you see a Model 3 in a parking lot, talk to the owner and let me know how ruined the brand equity is. Everyone I have spoken to loves the car (one person did say they liked their parent's Model S more because it felt more solid).

It is statistically safer to drive with Autopilot than without. Tesla is releasing their safety logs quarterly going forward, announced today.

I'm betting Tesla uses every trick in the book to financially engineer a profitable Q3, then attemt a capital raise (which Elon said was not needed, lol). It's going to mean Q2 and Q4 are awful. Bet that 2019 won't be GAAP profitable either.

Financial institutions are getting very wary - bonds are trading at 88 cents on the dollar...not good.

We'll find out in a few hours with the earnings call. I am seeing them everywhere, the only way 3,820 is correct is if they are only delivering cars in Silicon Valley (man, I hope that is not the case).

News was medium overall (neither great nor terrible), they are still advising to hit 5,000 at the end of Q2. Model 3 manufacturing is ramping up and it is already outselling all other EVs and all premium midsize cars except for the C-class in the US.

Tesla would be a good bet for future growth/earnings if it was purchased by Ford or GM (stock only or stock swap partnership deal). Tesla needs their capacity & logistics experience.

On the basis of this.. the Bonehead Musk deserves to fail..

http://www.dailymail.co.uk/sciencetech/article-5685057/The-price-cutting-analysts-For-Tesla-2-billion.html

It did seem pretty rude to me when I heard it live, actually worse than it sounds in the article. I would be pissed if I was the analyst, the questions weren't that bad. However, the Youtuber's questions were WAY more interesting.

LOL so many Tesla haters at this little website. Weird.

Not Tesla haters but people who value the truth and Tesla and the truth are mutually exclusive.

No you are right, it is 80% Tesla haters, but I think that will change over time.