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Time to laugh... or cry?

Tesla will need to raise more than $10 billion in capital through 2020: Goldman Sachs

Tesla Inc. TSLA, +0.01% will need more than $10 billion in capital raises and debt refinancing by 2020, Goldman Sachs analysts said Thursday. That is the sum needed to fund its current operations, new product spend and capacity additions, analysts led by David Tamberrino wrote in a note...
https://www.marketwatch.com/story/tesla-will-need-to-raise-more-than-10-billion-in-capital-through-2020-goldman-sachs-2018-05-17
 
edatoakrun said:
Time to laugh... or cry?

Tesla will need to raise more than $10 billion in capital through 2020: Goldman Sachs

Tesla Inc. TSLA, +0.01% will need more than $10 billion in capital raises and debt refinancing by 2020, Goldman Sachs analysts said Thursday. That is the sum needed to fund its current operations, new product spend and capacity additions, analysts led by David Tamberrino wrote in a note...
https://www.marketwatch.com/story/tesla-will-need-to-raise-more-than-10-billion-in-capital-through-2020-goldman-sachs-2018-05-17

If TSLA decided to slow growth and focus on profit, this number would be a lot less. Maybe even zero.
 
WetEV said:
edatoakrun said:
Time to laugh... or cry?

Tesla will need to raise more than $10 billion in capital through 2020: Goldman Sachs

Tesla Inc. TSLA, +0.01% will need more than $10 billion in capital raises and debt refinancing by 2020, Goldman Sachs analysts said Thursday. That is the sum needed to fund its current operations, new product spend and capacity additions, analysts led by David Tamberrino wrote in a note...
https://www.marketwatch.com/story/tesla-will-need-to-raise-more-than-10-billion-in-capital-through-2020-goldman-sachs-2018-05-17

If TSLA decided to slow growth and focus on profit, this number would be a lot less. Maybe even zero.
No. Even if it halted all vehicle production and capital spending today, TSLA would still to raise many billions in new cash in the next few years to pay off the short-term debt it incurred from losing much of the money it borrowed in order to deliver the BEVs it has built to date.

TSLA's high debt levels, poor credit quality, and extreme dilution of future profits (if any) due to the ridiculous level of equity floated already, make its future capital needs problematic.

BTW, the article above has been updated:

Tesla needs to raise $10.5 billion in capital to keep going through 2020: Goldman Sachs

...That’s the sum needed from external capital raises and debt refinancing for the electric-car maker to fund its current operations and finance new product spend and capacity additions, Goldman analysts led by David Tamberrino wrote in a Thursday note...
https://www.marketwatch.com/story/tesla-will-need-105-billion-in-capital-through-2020-to-keep-going-says-goldman-2018-05-17
 
edatoakrun said:
Time to laugh... or cry?

Tesla will need to raise more than $10 billion in capital through 2020: Goldman Sachs

Tesla Inc. TSLA, +0.01% will need more than $10 billion in capital raises and debt refinancing by 2020, Goldman Sachs analysts said Thursday. That is the sum needed to fund its current operations, new product spend and capacity additions, analysts led by David Tamberrino wrote in a note...
https://www.marketwatch.com/story/tesla-will-need-to-raise-more-than-10-billion-in-capital-through-2020-goldman-sachs-2018-05-17


I laugh at your posts every time and your obsessive compulsion on this topic. You sure are vested in Tesla.
 
If you were raising a chicken that lays golden eggs with the following parameters:
- The chicken requires golden chicken feed to grow
- Egg production is expected to be at least 10x what the chicken consumed in feed while it was growing
- There is no apparent upper bound on how large the chicken can grow, the bigger it grows the bigger the eggs

How long would you go before you stop feeding it? I'm thinking you'd grind up every egg into feed and get your hands on every other bit of gold feed you could until the chicken was like Godzilla before saying OK chicken no more gold feed, just sit there and lay eggs the size of city buses.
 
WetEV said:
If TSLA decided to slow growth and focus on profit, this number would be a lot less. Maybe even zero.

You are aware that TSLA refers to Tesla's stock symbol, right? So it's Tesla and not its stock symbol (TSLA) that decides about its growth.
 
LTLFTcomposite said:
If you were raising a chicken that lays golden eggs with the following parameters:
- The chicken requires golden chicken feed to grow
- Egg production is expected to be at least 10x what the chicken consumed in feed while it was growing
- There is no apparent upper bound on how large the chicken can grow, the bigger it grows the bigger the eggs...
Did you receive a leak of Musk's latest product plan update for the upcoming TSLA Q2 report...?
 
edatoakrun said:
Even if it halted all vehicle production and capital spending today, TSLA would still to raise many billions in new cash in the next few years to pay off the short-term debt it incurred from losing much of the money it borrowed in order to deliver the BEVs it has built to date.

Stopping vehicle production would be counter productive. Perhaps you mean vehicle development?

If TSLA continued vehicle production and prioritized capital spending to production bottlenecks only, then TSLA might increase revenue to $20 billion per year next year and rising only slowly after that, have a free cash flow over $1 billion per year starting next year and rising, and GAAP profits near $0.6 billion per year next year and doubling after that. So yes, TSLA would need to raise less than $1 billion next year to cover the $1.816 billion coming due next year. However, TSLA would be debt free and perhaps repurchasing shares by 2023 or so. And would never be much bigger than $30 billion (2018 dollars) per year in revenue.

Or TSLA might try to grow to maintain vehicle market share. Would look something like Ford in a decade, but much smaller.

Or TSLA might target GAAP breakeven, and need to continue to borrow. Could perhaps grow at 20% per year.

Or TSLA might continue to focus on very rapid growth and large and increasing losses. Can't go on all that much larger, as another decade like the last would make TSLA revenue $16T. US GDP is about $18T.

I don't know what is going to happen. Got popcorn.
 
lorenfb said:
You are aware that TSLA refers to Tesla's stock symbol, right? So it's Tesla and not its stock symbol (TSLA) that decides about its growth.

Of course. T esla is highlighted like Tesla and TSLA

I'd rather have T esla or TSLA with no highlight. A style preference.
 
WetEV said:
I don't know what is going to happen. Got popcorn.
It is a fascinating situation. I find the people predicting what will happen with any certainty to be the least credible. There are simply waaaay too many possibilities for how it will play out.
 
edatoakrun said:
GRA said:
LTLFTcomposite said:
^ It could just be that they are burning out and have other opportunities that are equally lucrative.
Entirely possible. Tesla has always had high turnover in the executive ranks. It's not for anyone who insists on having a life.
TSLA, of course, uses nondisclosure agreements to prevent open discussion by present and former employeees of what is really happening.

So you need to judge for yourself if the comments below ring true: <snip>
Sounds more or less how he was described in Ashley Vance's bio, so I'm not surprised. Burnout is common in the high-tech sector, and IIRR things were much the same at Paypal. If you aren't into working 90-100 hour weeks trying to meet unrealistic schedules it's not the job for you. I certainly wouldn't want to work in that environment.
 
WetEV said:
edatoakrun said:
Even if it halted all vehicle production and capital spending today, TSLA would still to raise many billions in new cash in the next few years to pay off the short-term debt it incurred from losing much of the money it borrowed in order to deliver the BEVs it has built to date.

Stopping vehicle production would be counter productive. Perhaps you mean vehicle development?

If TSLA continued vehicle production and prioritized capital spending to production bottlenecks only, then TSLA might increase revenue to $20 billion per year next year and rising only slowly after that, have a free cash flow over $1 billion per year starting next year and rising, and GAAP profits near $0.6 billion per year next year and doubling after that. So yes, TSLA would need to raise less than $1 billion next year to cover the $1.816 billion coming due next year. However, TSLA would be debt free and perhaps repurchasing shares by 2023 or so. And would never be much bigger than $30 billion (2018 dollars) per year in revenue.

Or TSLA might try to grow to maintain vehicle market share. Would look something like Ford in a decade, but much smaller.

Or TSLA might target GAAP breakeven, and need to continue to borrow. Could perhaps grow at 20% per year.

Or TSLA might continue to focus on very rapid growth and large and increasing losses. Can't go on all that much larger, as another decade like the last would make TSLA revenue $16T. US GDP is about $18T.

I don't know what is going to happen. Got popcorn.

Yes, all scenarios are possible. But given Elon's propensity to continue his historical business strategy, i.e. little/no concern for profitability,
Tesla's 5+ years of losses will likely continue with more product divergence, e.g. the Semi, the Model Y, Tesla 150 truck, tunneling, hyper-loop,
solar tiles, battery storage, and Tesla Solar, resulting potentially in a Chapter 11 or worst case Chapter 7 bankruptcy.
 
Yet another variable, brought to you by the perennial Tesla cheerleader seeking alpha:

https://seekingalpha.com/article/4175259-overlooked-reason-teslas-bankruptcy-unlikely-spacex
 
LTLFTcomposite said:
Yet another variable, brought to you by the perennial Tesla cheerleader seeking alpha:

https://seekingalpha.com/article/4175259-overlooked-reason-teslas-bankruptcy-unlikely-spacex

See, it's equally balanced, right?
 
Time to buy more TSLA shares for some, based on the following perspective?

Summary
After Q1's record loss and the "irregular earnings call," a lot of nervousness and uncertainty seems to be plaguing Tesla.
So why are key insiders buying more shares?
Ah yes, it could be because some of the most important fundamental elements at Tesla continue to improve.
And yes, Tesla can become profitable by the end of this year. I provide a comprehensive revenue, gross margin, and net income model to support this assertion.
Beware, results may surprise you as next year's profitability prospects increase substantially.

The most important elements continue to improve for Tesla. Most notably, the pace of production and profitability of the Model 3 vehicle. According to Bloomberg’s Model 3 tracker Tesla was producing about 3,566 Model 3 vehicles per week at the time of writing this vehicle. Moreover, the Model 3 line was shut down for improvements in April, so the actual production rate could be even higher right now.

The sky is not falling around Tesla. To the contrary, the fundamental elements surrounding the company are steadily improving. Most prominently, Model 3 production is greatly increasing in scale, and is becoming more profitable at the same time. Moreover, once production attains the 5K per week target, Tesla’s increased automation can begin to enable the company’s economies of scale to significantly improve in the Model 3 segment. This should allow the company to substantially improve Model 3 margins throughout the rest of this year and into 2019.

You be the judge.

https://seekingalpha.com/article/4176132-teslas-path-profitability?dr=1
 
lorenfb said:
WetEV said:
edatoakrun said:
Even if it halted all vehicle production and capital spending today, TSLA would still to raise many billions in new cash in the next few years to pay off the short-term debt it incurred from losing much of the money it borrowed in order to deliver the BEVs it has built to date.

Stopping vehicle production would be counter productive. Perhaps you mean vehicle development?

If TSLA continued vehicle production and prioritized capital spending to production bottlenecks only, then TSLA might increase revenue to $20 billion per year next year and rising only slowly after that, have a free cash flow over $1 billion per year starting next year and rising, and GAAP profits near $0.6 billion per year next year and doubling after that. So yes, TSLA would need to raise less than $1 billion next year to cover the $1.816 billion coming due next year. However, TSLA would be debt free and perhaps repurchasing shares by 2023 or so. And would never be much bigger than $30 billion (2018 dollars) per year in revenue.

Or TSLA might try to grow to maintain vehicle market share. Would look something like Ford in a decade, but much smaller.

Or TSLA might target GAAP breakeven, and need to continue to borrow. Could perhaps grow at 20% per year.

Or TSLA might continue to focus on very rapid growth and large and increasing losses. Can't go on all that much larger, as another decade like the last would make TSLA revenue $16T. US GDP is about $18T.

I don't know what is going to happen. Got popcorn.

Yes, all scenarios are possible. But given Elon's propensity to continue his historical business strategy, i.e. little/no concern for profitability,
Tesla's 5+ years of losses will likely continue with more product divergence, e.g. the Semi, the Model Y, Tesla 150 truck, tunneling, hyper-loop,
solar tiles, battery storage, and Tesla Solar, resulting potentially in a Chapter 11 or worst case Chapter 7 bankruptcy.


Nice to see American companies reinvesting and not trying to squeeze every penny out of the business, the risk may just pay out and certainly he's done more to change the landscape than other corporations in this area.
 
EVDRIVER said:
he's done more to change the landscape than other corporations in this area.

Yes, the love for Elon is endless!

Nothing to do with love, just what a company leader is doing. Pretty clear to any casual observer.

Why do some moderators modify posts? The bolden text is NOT mine! What's going on here???????????????

To the disbelief of some awhile ago, that I previously noted, this did/does occur.
 
You are not crazy, the buttons on your CP are different than mine (edit and quote next to each other) and rarely when quoted it can come up as an edit on accident, for some reason the edit intended as a quote goes bold once submitted indicating the edit. Nothing on your post was intentionally put into bold. The edit is my reply, In my panel it looks like a reply quote. It should read like the post below. Again, if you have an issue with a post PM a mod and it can be looked into or resolved. This is a simple misquote error. Sorry.

You should also reply in a separate post as it appears you edited your post making it confusing to understand and resolve the original issue. FYI
 
lorenfb said:
EVDRIVER said:
he's done more to change the landscape than other corporations in this area.

Yes, the love for Elon is endless!

Nothing to do with love, just what a company leader is doing. Pretty clear to any casual observer.

Why do some moderators modify posts? The bolden text is NOT mine! What's going on here???????????????

To the disbelief of some awhile ago, that I previously noted, this did/does occur.


Nothing to do with love, just what a company leader is doing. Pretty clear to any casual observer.
 
I've reported recent moderator activity on this thread, as quoted below.

If any of your comments have been deleted or altered recently, I'd suggest you report that also.

Please review moderator activity on this thread.

One of my comments on this thread disappeared a few days ago.

When I asked for an explanation, "EVDRIVER" indicated he had deleted my post by accident, and another of my posts had been added to (NOT in bold type, as claimed) and then mis-quoted in this altered form by "EVDRIVER".

When I posted a request for an correction, nothing happened until today, when all of the multiple posts by many forum members made from late on 5/17 to early 5/22, including "EVDRIVER"'s explanation for how he had deleted my post by accident and my altered posts, had all disappeared.

Is it too much to ask that the content we contribute to this forum not be altered or destroyed by a moderator's errors?
EVDRIVER said:
You are not crazy, the buttons on your CP are different than mine (edit and quote next to each other) and rarely when quoted it can come up as an edit on accident, for some reason the edit intended as a quote goes bold once submitted indicating the edit. Nothing on your post was intentionally put into bold. The edit is my reply, In my panel it looks like a reply quote. It should read like the post below. Again, if you have an issue with a post PM a mod and it can be looked into or resolved. This is a simple misquote error. Sorry.

You should also reply in a separate post as it appears you edited your post making it confusing to understand and resolve the original issue. FYI
 
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