Can TSLA begin to get the cash flow from tens of thousands of model 3 sales soon enough, in order to make a plausible pitch to sell more debt or equity before it burns through all the cash it has on hand?
On that point, the quarterly report will tell us much more than these sales figures have.
It should reveal what sort of discounts TSLA had to make on Ss and Xs, to move those extra few thousand vehicles.
Putting the 'S' In Tesla
By Liam Denning
Tesla's third-quarter deliveries were up slightly, year over year, and came in higher than production for the first time since late 2015
Given a somewhat patchy history when it comes to hitting targets or earnings forecasts, this will no doubt come as good news to many Tesla investors -- although, to be fair, they rarely display noticeable concern about such things.
Yet the bad news overshadows all this.The bad news concerns the Model 3, Tesla's cheaper vehicle launched in July. Only 260 of these were made in the third quarter, of which 220 were actually delivered.Only in August, the company expressed confidence it could produce more than 1,500 in the quarter (already a big downgrade to earlier targets)...
An extra five-or-six-thousand Model S and X deliveries is nice, but unlikely to make much difference to Tesla's ferocious rate of cash burn, forecast to be $1.6 billion for the second half, according to estimates compiled by Bloomberg...
In August, Tesla expected to be producing 5,000 a week by the end of December. That implied an increase of 44 times the average weekly production rate of the third-quarter -- based on the old guidance, that is.
Using the actual numbers for the quarter just gone, the required ramp-up is now on the order of 250 times -- soaring, steep, sheer.
https://www.bloomberg.com/gadfly/articl ... in-s-curve