@lopezlinette spreading FUD about TSLA again.
Apparently @russ1mitchell believes this passes for "intelligence and clarity" (?!).
Some comments on this "article" below.
Apparently @russ1mitchell believes this passes for "intelligence and clarity" (?!).
Some comments on this "article" below.
“And Tesla's balance sheet leaves many reasons to be skeptical. With its $7.9 billion in assets still swallowed by $9.7 billion in liabilities;”
Nonsense. Assets are not “swallowed” by liabilities...
Nonsense. Assets are not “swallowed” by liabilities...
... Tesla has simply raised capital (debt and equity) to invest and is now generating unprecedented cashflows as a result.
Perhaps Ms. Lopez isn’t familiar with the fact that balance sheets are balanced by Assets equaling Liabilities PLUS equity.
Perhaps Ms. Lopez isn’t familiar with the fact that balance sheets are balanced by Assets equaling Liabilities PLUS equity.
“… with a massive debt bill coming due in March;…”
Big deal. Tesla borrowed to invest in manufacturing capabilities. This is convertible debt, repayable in cash, or shares at Tesla's option provided the stock price exceeds the ~$360 conversion price at the time of redemption.
Big deal. Tesla borrowed to invest in manufacturing capabilities. This is convertible debt, repayable in cash, or shares at Tesla's option provided the stock price exceeds the ~$360 conversion price at the time of redemption.
“… and with commitments to start all kinds of capital-intensive projects floating around, Tesla will need a lot of money.”
Tesla has a lot of money - $3B in cash on the b/s plus $1B in unused credit line, and positive cash flow. Tesla has enough money to fund its capex.
Tesla has a lot of money - $3B in cash on the b/s plus $1B in unused credit line, and positive cash flow. Tesla has enough money to fund its capex.
“What's more, on Wall Street, accounting is as much an art as it is a science. A really talented numbers-smith can make a smash hit out of a quarter that might otherwise have sounded sound like a flop.”
WTF are you talking about! This is just a smear.
WTF are you talking about! This is just a smear.
“Tesla got what UBS called "some unexpected help" by selling $137.2 million in non-ZEV regulatory credits to traditional automakers.”
Tesla sells ghg credits, awarded on per-vehicle basis, every quarter, & they track volume. Maybe UBS was surprised but serious analysts were not!
Tesla sells ghg credits, awarded on per-vehicle basis, every quarter, & they track volume. Maybe UBS was surprised but serious analysts were not!
"Research and development fell from 11% of sales to 5%, despite the fact that Musk has said that a Tesla Roadster, a Semi, a Model Y, and a pickup truck are in the works."
Please google “operating leverage”.
Please google “operating leverage”.
Ms. Lopez then goes on to raise more faux “questions” about a 103% jump in receivables (yeah… revenue jumped 105% q/q), and a “head scratcher” (for Linette) re moving some inventory to service loaners and therefore being reclassified from inventory to PP&E (seems… reasonable?)
“These are pretty ambitious plans for relatively flat capital expenditures”
Yes, ambitious plans. Adequately funded with existing cash and anticipated cashflows!
Yes, ambitious plans. Adequately funded with existing cash and anticipated cashflows!
“Tesla has $3 billion in cash, but it also has $3.5 billion in accounts payable.”
Don’t forget $1.2B in accounts receivable and $1B+ unused credit capacity!
Don’t forget $1.2B in accounts receivable and $1B+ unused credit capacity!
“In other words, to invest heavily in its expansion, Tesla still needs to generate even more cash than it has.”
No it doesn’t! Again, Tesla has enough cash, available credit line, and anticipated operating cash flow to fund its capex plans.
No it doesn’t! Again, Tesla has enough cash, available credit line, and anticipated operating cash flow to fund its capex plans.
