Model S

Positive Cash Flow

edited December 2012 in Model S
At 20:40PST on Monday night, 12/03/2012, Elon Musk tweeted:

Am happy to report that Tesla was narrowly cash flow positive last week. Continued improvement expected through year end.

— Elon Musk (@elonmusk) December 4, 2012


  • edited November -1
    Congratulations Tesla!!!
  • edited November -1
    During the last earnings call, Elon mentioned that they need to build 8,000 cars to break even. From the numbers we collect in the forum, it seems likely that 8,000 cars have been finalized, but only around 2,000 have been built.

    Anyway, Go Tesla! :-)
  • edited November -1
    Congrats Elon and Tesla!!!
  • edited November -1
    Volker, that is 8000 cars / year, after the process is be streamlined. That works to about 160 cars / week and we're definitely past that. But the ramp-up, a bit of rush and doing it for the first time surely induces inefficiencies. But even so, weekly production is now large enough so that they are cash flow positive :)

    Congrats Tesla and Elon!
  • edited November -1
    Congrats !
  • edited November -1
    Way to go,
    Mant congrats and keep up the good work!
  • edited November -1
    Mant-> many
  • edited November -1
    From a profit/earnings POV, income is recognized only on delivery and payment. So the 8,000 will start counting with the 1st delivery Jan. 1. Should lag production by about 2-3 weeks.
  • edited November -1

    Congrats on a major milestone. Good job on all the hard work. Tell the folk on the factory floor and all the people prepping and delivering cars that the reservation holders appreciate their efforts and long hours the past few months. We are so excited to get our cars!
  • edited November -1
    I'll be <i>flowing</i> cash Tesla's way this month. Glad to be of service and proud to be involved :) VIN1796/Silver Performance (loaded)
  • edited November -1
    Brilliant milestone. Many investors look at GAAP earnings, but for a startup like Tesla, what matters is cash flow. GAAP earnings are only appropriate for a mature company. As long as this isn't a temporary blip, and Tesla will stay cash flow positive, this is indeed great news.
  • edited November -1
    Morgan Stanley was targeting ~$45 shares based on optimistic expectation that TM might be cash flow positive sometime in '13. Wonder what the next target will be!
  • MB3MB3
    edited November -1
    It is also fairly certain that they will remain cash flow positive for the foreseeable future given the back log of orders. The next challenge will be maintaining the momentum and staving off competition from larger players if/when it arises.
  • Canada P157....I shall be contributing to TM's cash flow next Feb/Mar.
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