Re:Tesla Third Quarter 2018 Update [pdf]
by hef19898 on Thursday October 25, 2018 @01:52AM
(#18298787)
It is one profitable quarter, so. Whether this is sustainable or not, well I don't know.
The most important for Tesla now would be to keep production stable. Reports about bad quality might hint at some issues on that front. The other risk I see is how debt is structured. With debt converting to stock above certain values means Tesla is much more reliant on stock courses than other companies. So Tesla needs to keep production stable to keep the cash flow positive and keep the valuation high to be able to cover debt. Riky position if you ask me.
The most important for Tesla now would be to keep production stable. Reports about bad quality might hint at some issues on that front. The other risk I see is how debt is structured. With debt converting to stock above certain values means Tesla is much more reliant on stock courses than other companies. So Tesla needs to keep production stable to keep the cash flow positive and keep the valuation high to be able to cover debt. Riky position if you ask me.