Tesla, its not looking good!

[Mega]

http://www.zerohedge.com/news/2017-1...lls-ev-credits

Factor in the fact that REAL car producers are being forced to produce & Tesla will have to go up against Porsche, means Porsche will produce a car that can run FAST on a racing lap. Tesla over heat after only half a lap, they fall apart as well.................its over baby!

Mike

[lakedaemonian]

Re: Tesla, its not looking good!

Tesla’s balance sheet debt is exceeding annual revenue.

After this atrocious last quarter they’ve got 18 months of runway before they run out of cash.

Even if they someday generate the cash flow of a Toyota/VW, they’ve got a long hard road with that mountain of debt.

[Mega]

Re: Tesla, its not looking good!

http://www.carscoops.com/2017/11/why...3s-ss-and.html

Meantime Porsche & Co are coming...........

[Mega]

Re: Tesla, its not looking good!

oh now he is coming for Posrche
http://www.carscoops.com/2017/11/tes...front-for.html

Anyone got the feeling that he running out of cash?

[lakedaemonian]

Re: Tesla, its not looking good!

oh now he is coming for Posrche
http://www.carscoops.com/2017/11/tes...front-for.html

Anyone got the feeling that he running out of cash?

18 months of runway left in cash.

They’ll have to borrow or sell shares within 12 months assuming no major operational/financial improvements.

The just issued Tesla junk bonds are already trading at a decent discount:

https://seekingalpha.com/article/412...la-bond-update

[dcarrigg]

Re: Tesla, its not looking good!

7.55% ... they're giving 8-year used car loans out to people with 600 credit scores for that kind of return.

[lakedaemonian]

Re: Tesla, its not looking good!

https://www.forbes.com/sites/chuckjo.../#6dae87654f5b

Well this should buy Tesla 2 more runway.

Approximately 2 weeks at current cash burn.

[thriftyandboringinohio]

Re: Tesla, its not looking good!

I looked it up.
Tesla has burned through 10.6 billion in cash.

An all-new model conventional car with no significant amount of carry-over legacy components - all new engine and transmission, all new chassis, in an all-new factory - might require 6 billion dollars for the first car to roll off the production line.
So Tesla's spending is not wildly out of line. Tesla spent one and a half launch budgets and has one and a half models on the road.

But Tesla has none of the support for the new car model that companies like Toyota and Ford enjoy.
Things like full line of other cars generating profits to fund the new business, and world class sales numbers.
Toyota and Ford each sold about 2.5 million cars in the US last year, and GM sold 3 million vehicles
Tesla sold 15,000. That's 1/2 of 1 % of the big guys.
So compared to the big car companies Tesla's launch costs are approximately the same but their sales are approximately zero.

I don't see how you survive at that huge industrial scale with full capital and production costs and no sales.

[jk]

Re: Tesla, its not looking good!

Nick Givanovic @NickGivaFollowFollow

@NickGiva

Trading idea of the century: buy $TSLA shares through brokers with BUY rating (@MorganStanley), short equal amount through IB and when it all turns out to be a fraud join the class action against MS. Result=free synthetic put.

[Mega]

Re: Tesla, its not looking good!

https://www.autocar.co.uk/car-news/n...es-2020-launch

His "Sports coupe" is likely turn out to be a "One off"............he must be getting short of cash, if Porsche Audi kill his normal sales & the press turn on him............its over.

Mike

[Mega]

Re: Tesla, its not looking good!

Oh Musk gets a mention jusr at the end of this clip, in the same breath of the Wright bros.................i think he be more in line somewhere between Tucker & John Deloaren !

[lakedaemonian]

Re: Tesla, its not looking good!

I'm waiting for Tesla to pursue Airbus and the Saudi sovereign wealth fund for investment.

Airbus doesn't seem to mind $20 billion of sunk and likely unrecovered costs on the dying A380, and the Saudis just seem to throw money at silly things.

So they'd be a perfect match.

[Mega]

Re: Tesla, its not looking good!

He has NOT invented anything!!!!!!!!!!!!!!!!!!!!!!!!
Oh, the latest:-

Mega sends Musk a message............"Cash flow F*cker!"

[GRG55]

Re: Tesla, its not looking good!

I looked it up.
Tesla has burned through 10.6 billion in cash.

An all-new model conventional car with no significant amount of carry-over legacy components - all new engine and transmission, all new chassis, in an all-new factory - might require 6 billion dollars for the first car to roll off the production line.
So Tesla's spending is not wildly out of line. Tesla spent one and a half launch budgets and has one and a half models on the road.

But Tesla has none of the support for the new car model that companies like Toyota and Ford enjoy.
Things like full line of other cars generating profits to fund the new business, and world class sales numbers.
Toyota and Ford each sold about 2.5 million cars in the US last year, and GM sold 3 million vehicles
Tesla sold 15,000. That's 1/2 of 1 % of the big guys.
So compared to the big car companies Tesla's launch costs are approximately the same but their sales are approximately zero.

I don't see how you survive at that huge industrial scale with full capital and production costs and no sales.

Thats always been the issue.
I continue to hold the view that Tesla simply lacks the cash to do the product development necessary to survive. This is what ultimately killed Studebaker-Packard and American Motors, just two examples.

Okay, you are a 2013 Model S owner. You want to buy a new luxury car. What does Tesla have to offer to keep you interested? Are you going to buy a new Model S that looks pretty much identical to your old Model S, and brag about the new paint colours at the country club? Maybe Elon thought you were going to trade up to an all-electric transport tractor?

[Mega]

Re: Tesla, its not looking good!

Here is a bloke who should know...............& i suspect does!
http://www.carscoops.com/2017/11/bob...ng-out-of.html