Tesla Earnings Crush Estimates — Elon Was Right, Can Self-Finance Massive Growth
Credit to Author: Paul Fosse| Date: Wed, 23 Oct 2019 22:14:39 +0000
Published on October 23rd, 2019 | by Paul Fosse
October 23rd, 2019 by Paul Fosse
Tesla’s continued positive cash flow and $5.3 billion in cash, even while quickly expanding both its product line and its manufacturing capabilities, and growing its leasing business, puts to rest any short-term worries on whether Tesla [TSLA] can sustain its aggressive growth.
While the Chinese Gigafactory is not online yet and the Model Y has not been realized, Tesla used its time wisely to work on cost control and improve margins. Even though the average selling price of the Model 3 dropped as the Standard Range Plus became available in more places and the Model 3 continues to cannibalize some Model S sales, Tesla used its relentless drive to innovate, not just on its product, but also in its manufacturing process, to cut costs and increase margins.
From Tesla’s Q3 2019 investor update.
My biggest takeaway is that Tesla has learned to continue to implement massive development of new vehicles and massive expansion of production capacity without spending massive amounts of cash.
This does not constitute investment advice. Please talk to an investment adviser that evaluates your individual situation before making any investment decisions.
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Paul Fosse A Software engineer for over 30 years, first developing EDI software, then developing data warehouse systems. Along the way, I’ve also had the chance to help start a software consulting firm and do portfolio management. In 2010, I took an interest in electric cars because gas was getting expensive. In 2015, I started reading CleanTechnica and took an interest in solar, mainly because it was a threat to my oil and gas investments. Follow me on Twitter @atj721 Tesla investor. Tesla referral code: https://ts.la/paul92237