Re:Tesla posts big loss, cuts production of Models X and S t...
by awakeasleep on Wednesday November 01, 2017 @10:26PM
(#15607350)
Tesla originally planned to run two production lines but had to drop to a single one, and they're doing it in an expensive and unusual manner, and a second won't fit in their fremont plant, and they still plan to build out the second line in the same unusual 'cold' manner.
This leads me to expect it's reasonable their burn will continue at the same rate.
Furthermore, it's estimated they won't reach 3k a week till the end of 2018.
https://dailykanban.com/2017/10/source-tesla-responsible-mod...
Re:Tesla posts big loss, cuts production of Models X and S t...
by inventtheday on Wednesday November 01, 2017 @09:27PM
(#15607107)
I don't think any of the upfront investment or capital expenditure is included in the 1.4 billion calculation. Thats purely operating loss.
Re:Tesla posts big loss, cuts production of Models X and S t...
by kgwgk on Thursday November 02, 2017 @03:46AM
(#15608565)
The $1.4bn is $300mn cash flows used in operating activities + $1.1bn capex.
Re:Tesla posts big loss, cuts production of Models X and S t...
by wott on Thursday November 02, 2017 @06:47AM
(#15609226)
So, can we assume that if the production has to be multiplied by 10, the cash flow used for operating activities should also be multiplied by almost 10, giving expenses of way more than $1.4bn?
Re:Tesla posts big loss, cuts production of Models X and S t...
by inventtheday on Saturday November 04, 2017 @12:33AM
(#15623801)
No, because a huge cost for them right now is underutilization of assets (factory, tooling, some workers, etc.). Their utilization rate will improve, and so operating costs should not scale linearly with revenue growth. "Should" being the key word.
Re:Tesla posts big loss, cuts production of Models X and S t...
by Aron on Thursday November 02, 2017 @03:00AM
(#15608382)
"Capital expenditures were $1.1 billion in Q3. The majority of capital expenditures were attributable to Model 3 and Gigafactory 1
production capacity increases. "
Re:Tesla posts big loss, cuts production of Models X and S t...
by skgoa on Thursday November 02, 2017 @09:02AM
(#15609989)
During the conference call, Musk himself said that CapEx in Q4 could be as high as in Q3.
Re:Tesla posts big loss, cuts production of Models X and S t...
by paulpauper on Wednesday November 01, 2017 @09:36PM
(#15607147)
much of those expenses are one-time cap ex
It seems like you're assuming that the cash burn will stay at 1.4billion. Expenditure should go down once the production line tooling is complete.