evnow wrote:webb14leafs wrote:These arguments will keep going on for a while because after the next couple quarters (or possibly sooner) it might be a long time before Tesla reports another profit. It was vital for them to show that they COULD show a profit, because the next thing they need to do is build up a ton of debt as soon as possible.
That is not what they are doing. They will continue to make profits every quarter until most of the shorts disappear, TSLA is part of S&P500 and they have good investment grade credit rating.
Besides, they have other avenues of raising money. Mainly from local governments/banks. They already did so in China. They'll do it again in EU. Even in US, they'll make it a condition to locate their next factory - raise money for us thr' state bonds.
Not sure if you're disagreeing or just pointing out where there debt will come from. I agree they will have an easy time borrowing money, but their cash burn will exceed their profits once they start manufacturing new plants. This isn't really an arguable point.