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Tesla Suffering Cash Flow Issues; Every Model S Means a $4,000 Loss
An anonymous reader writes: The latest reports from Tesla show a trend of missing positive cash flow targets. Despite previous guidance to the contrary, Tesla is losing more than $4000 per car in operating margin and no sign of near term improvement as they are now reducing their production targets at a time when they are also experiencing pricing pressure. A scan of articles published today on this news reveals a common opinion that Tesla will need to raise more capital soon.
A small slice of the Reuters report linked: Tesla has signaled capital spending will drop next year because the company won't be spending on a major vehicle launch. In 2017, Tesla plans to launch its Model 3 line, which the company says will start at about $35,000 and push total sales toward the goal of 500,000 vehicles a year by 2020.
Barclays analyst Brian Johnson disagreed with the company's estimates, and said he expects Tesla's capital spending will go up in 2016 and 2017 as the company ramps up its battery factory and Model 3 development. "Their small scale means the cash generation is not as great as they might have hoped for," he said.
So... what are we going to do? Say good bye to mobility? For if we don't have the means to produce electricity to power cars, we sure don't have the oil to do so, considering that you can produce electricity out of oil PLUS a lot of other means, too...
No, you can't produce electricity from oil, because GLOBAL WARMING!
In case you hadn't noticed, Obama is pushing a plan to significant reduce electricity production while dramatically increasing the price. Unless you get away from the GLOBAL WARMING! claptrap, you're not going to be increasing electricity production any time soon.
Yes, I do know what infrastructure means.
Clearly you still don't.
Nor does it fit the second definition - which refers to public services and utilities, not private businesses.
You're an idiot.