How financially stable is Tesla?

Fast forward four years and Tesla is in a much better financial position. In 2020 it generated $5.94 billion in operating cash flow and $2.78 billion in free cash flow after subtracting $3.16 billion in capital expenditures. Over the course of four years its net cash position changed by $15 billion.

Does Tesla have a future?

Tesla’s growth plans Tesla management said the company expects to grow its EV deliveries at an average annual rate of 50\% over a multi-year horizon. In 2020, the company delivered nearly 500,000 vehicles. Based on its expected growth rate, the company could be delivering 28 million cars annually 10 years from now.

Is Tesla really a tech company?

“Tesla is not an automotive company, it’s a tech company that builds cars,” said one former employee of both companies who worked in products. That also translates to the company’s leadership.

Is Tesla capital intensive?

Tesla Inc (NASDAQ: TSLA) operates in a capital-intensive industry, and the electric vehicle giant is stepping up investment to maintain its lead over the competition. “We expect our ability to be self-funding to continue as long as macroeconomic factors support current trends in our sales,” according to Tesla.

Will Tesla run out of cash in 10 months?

Elon Musk told Tesla employees the company will run out of cash in about 10 months unless “hardcore” cost-cutting efforts are made, according to an all-staff email obtained by Reuters and Electrek. The cost-cutting measures are necessary despite the fact that Tesla just raised $2.7 billion earlier this month, Musk said in the email.

Is Tesla losing money selling cars?

“These guys are losing money selling cars. They’re making money selling credits. And the credits are going away,” said Gordon Johnson of GLJ Research and one of the biggest bears on Tesla ( TSLA) shares. Tesla top executives concede the company can’t count on that source of cash continuing.

Is Tesla going out of business?

Musk said in May 2018 he had delayed offering the $35,000 Model 3 so the company wouldn’t die, and in November 2018, he admitted Tesla still came within single-digit weeks of collapse. The company changed its plans just two weeks later: Tesla announced many of its stores would, in fact, stay open.

How much has Tesla raised in debt?

The electric car company, which has a market cap of around $50 billion, has raised some $38 billion in debt and equity since 2008. Tesla CEO Elon Musk is much more sanguine. “Tesla will be profitable & cash flow+ in Q3 & Q4,” Musk tweeted on Apr. 12, “so obv [iously] no need to raise money.”