Porsche of EVs (low volume high margin) instead of VW of EVs (mass production low margin)

Porsche of EVs (low volume high margin) instead of VW of EVs (mass production low margin)

Seems Tesla desire to be a high volume low margin mass producer of EVs might be too much of a financial strain/loss.

Reported that Elon's comments $2.2 billion in cash on hand -- may not have enough cash on hand to last beyond a period of 10 months at the Q1 burn rate.

Going to need a lot more than sales volunteers and bankrupt might not be too far fetched.

Hope not!

greg | 20. Mai 2019

I am sure that big fat wad of $2 Billion Euro coming due in "ZEV credits" due from FCA next year is also factoring into Elons planning/thinking. They just need to stretch the $2.2 Billion cash raiue out until minimum of end of Q2 2020. To ensure the FCA ZEV credits money is flowing in.

They certainly can't burn cash like they did in Q1 for the nest 10 months.

But then they're not likely to either, given the post tax credit drop, the logistics challenges of international deliveries to EU and China. As well as ramping up GF3 spending for China. All of these are one-offs in a single quarter.

And likely Tesla will have a bunch of $$ coming in from selling "NEV credits" to the Chinese market at the end of this year too.

As the saying goes, its always darkest, before the dawn.

I think Tesla will have a very brilliant "dawn", and its just waiting in the wings - its making sure they're able to be there when it does.

ReD eXiLe ms us | 20. Mai 2019

howard: Please, do not surrender to the constant FUDster theorem which has been proven incorrect for at least the last 18 months. Tesla will raise cash by selling products that people want to buy. Noting 'burn rate' as if there is a literal dumpster fire roaring behind Fremont fed by piles of cash, is a deceptive narrative. Tesla does get paid for the cars they sell.

Tesla is not going to run out of money. Not in three months. Not in six months. Not in nine months. Not in less than 12 months.

82bert | 20. Mai 2019

Thanks for the insight as always, Howard.