>Elon's vision is to take over the world automobile market quickly. It's impressively how close he's come.
What? They are a microscopic fraction of global market share. They are number 1 in a particular, shrinking market segment that all other manufacturers are moving away from, because they produced 2 years worth of demand at once. Their month-over-month share of cars in that price range is decreasing.
>They made $3.7B with a 20% margin and just paid off $920M in convertible bonds. They have $2.2B on hand and sold 63,000 model 3s this quarter. Where's the desperation?
They made $3.7BB in revenue, at 20% GROSS margins, but still LOST $600MM+, after promising profitability every quarter in the future. Revenues declined 30% quarter over quarter. Paying down the debt doesn't show up on the income statement. They have $2.2BB on hand, $700MM+ is restricted deposit money, after burning through $1.6BB last quarter. They also drew down their ABL. Their capital expenditure is barely covering depreciation, yet they have to build out multiple lines and factories. Their AP barely decreased ($100MM), while revenues sunk drastically. They have $9BB+ in debt, and less cash on-hand than their AP. They are slashing prices on cars they claim have "insane demand". There are people all over Twitter and Reddit waiting months for service or parts. Insurance costs are sky-rocketing. There's inventory stuffed in abandoned car lots all over the country. Elon is fighting with the SEC and rumour has it the DOJ and FTC as well.
You don't see a problem because you don't appear to know where to look. No individual metric is an issue, but in aggregate it doesn't look good.
What? They are a microscopic fraction of global market share. They are number 1 in a particular, shrinking market segment that all other manufacturers are moving away from, because they produced 2 years worth of demand at once. Their month-over-month share of cars in that price range is decreasing.
>They made $3.7B with a 20% margin and just paid off $920M in convertible bonds. They have $2.2B on hand and sold 63,000 model 3s this quarter. Where's the desperation?
They made $3.7BB in revenue, at 20% GROSS margins, but still LOST $600MM+, after promising profitability every quarter in the future. Revenues declined 30% quarter over quarter. Paying down the debt doesn't show up on the income statement. They have $2.2BB on hand, $700MM+ is restricted deposit money, after burning through $1.6BB last quarter. They also drew down their ABL. Their capital expenditure is barely covering depreciation, yet they have to build out multiple lines and factories. Their AP barely decreased ($100MM), while revenues sunk drastically. They have $9BB+ in debt, and less cash on-hand than their AP. They are slashing prices on cars they claim have "insane demand". There are people all over Twitter and Reddit waiting months for service or parts. Insurance costs are sky-rocketing. There's inventory stuffed in abandoned car lots all over the country. Elon is fighting with the SEC and rumour has it the DOJ and FTC as well.
You don't see a problem because you don't appear to know where to look. No individual metric is an issue, but in aggregate it doesn't look good.