Re:Tesla Q1 2020 Update
by tenpies on Wednesday April 29, 2020 @07:43PM
(#23025927)
Tesla's way of counting cash is . . . quite imaginative to say the least.
If you used conventional metrics their cash is more like $2 BB, and a bunch of that is stuck in China (as in their agreement for Tesla Shanghai stipulates that cash cannot leave the country).
There is a real liquidity problem in there, but the people buying Tesla shares are not exactly the sharpest knives, or they're investing on the Tesla story, not financials.
If you used conventional metrics their cash is more like $2 BB, and a bunch of that is stuck in China (as in their agreement for Tesla Shanghai stipulates that cash cannot leave the country).
There is a real liquidity problem in there, but the people buying Tesla shares are not exactly the sharpest knives, or they're investing on the Tesla story, not financials.