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Old 07-25-2019, 09:30 PM   #1170
E. Nick
Scooby Specialist
Member#: 8489
Join Date: Jul 2001
Chapter/Region: BAIC
Location: Atherton, CA
2005 Carrera GT


Originally Posted by godfather2112 View Post
If / when they restructure and if Elon is allowed to stayed on, Iíll be passed as ****. I will say that a restructure right now with the cash on hand would be extremely beneficial to Tesla. Wipe out the existing debt minus building lease payments and suddenly youíve freed up an insane amount of cash flow which could really propel the company forward.

The stock would tank, investors would sue (and lose), and Elonís worth would diminish to **** (still be a millionaire if not a single digit billionaire).

Tesla still has $5b in cash, assuming it were to trend at a $400M loss each quarter, it would last another 5 quarters ($2B cash left before needing a cash raise). It still has the ability to tap the equity markets for more cash, which it realistically should have raised more cash than they did the last time. Another cash raise, assuming they would need to, would likely give them another 2 years from date of cash raise if they continue at same cash burn rate.

If they can continue to cut costs and ramp up demand without dropping margin below current levels, they very well could turn profitable this year. Iíd expect them to go negative closer to model Y launch but Elon also expects that. The model Y could dramatically create more profit and cash flow.

One thing I do wonder about is since the semi doesnít seem to be happening this year or next, is if companies cancel their orders and ask for that cash back. That could be a fairly large hit.
Lots of things in there you're taking at face value that are unfortunately lies. Ex. - I'd love to see the 5B cash broken out/explained, along with many other lines of the statements, A/R, Capex, A/P just to name a few that stink to high heaven - we'll get some more color with the 10Q, but like the restructure, all the really nasty stuff will stay hidden until there is no other choice.
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