tesla's biggest problem it needs to address for earnings - energy storage solutions
Tesla Inc. (TSLA -Get Report)
Will change the world. . . .
Tesla is a scam that will end in a huge crash.
The action from the team depends on the opinions of investors, these pole
Many of the bulls share the opposite view. bear community.
Many people either like Tesla or hate it.
As CEO Elon Musk, whose goal is to change the world, has gambled many times in Tesla.
Results so far? Bumpy.
There are clear positive factors.
Model S and Model X are doing well, and Tesla energy storage solutions like Powerwall are promising.
However, Tesla's big plan left a deep hole in its pocket.
As of last quarter, it had a total debt of $10. 3 billion. At year-end 2016 (
Five quarters ago)
Tesla's total debt is only $7.
12 billion and two years ago, Tesla's first
The debt for the 2016 quarter was $3. 1 billion.
Therefore, it is not difficult to see that the company's debt burden has tripled in the past two years.
Of course, billions of dollars in the debt came from the acquisition of SolarCity.
Still, behind the Model 3, Tesla's finances have become the first
One focus among investors.
Whether you hate this company or you like it, it's hard to look at it financially or find out that Tesla's situation is dangerous.
In Tesla's case, finance is directly related to Model 3.
Quality of automobile manufacturers
Market cars should drive their profits and lay the foundation for positive cash flow to fund other vehicles and ambitions.
That is the semi-trailer of Y-cars, sports cars and Tesla.
There are also its energy storage solutions and the company's ambitious solar roof project.
But all these products need money.
There are many more.
If Tesla can produce Model 3 on a large scale and reduce costs, it can fund these projects, and so on.
However, the current situation of Model 3 is very bad.
Heck, it can't even make up for its own costs at this point, let alone fund the costs of others.
Tesla is trying to make Model 3, which is a huge amount of cash.
Musk recently admitted to relying too much on automation, which has hired 400 people a week for weeks, with a production model of 24/7.
It is hoped that Tesla will produce 5,000 Model 3 per week before the end of calendar q2.
But what is the price?
Musk said the company would make a profit.
Probably in a nonGAAP basis)and cash-flow positive (
It's probably cash flow, not free. cash flow)
Third and Fourth Quarter
However, this is a tough purchase requirement at this point.
Let's back it up a little bit here.
At present, the financial situation is Tesla's main concern.
At present, Model 3 is the weight of most financial difficulties, but it can also save Tesla from these problems.
In this sense, it seems that Model 3-
Not finance-
Tesla is currently facing the biggest problem.
Investors can certainly argue about this.
But in the end it doesn't matter because they go hand in hand.
If Tesla is in a better financial position, it will have more time and less concerns to correct Model 3.
Also, its financial position is the ticking clock, not the Model 3.
Tesla will also fail if the finances fail.
So when it comes to the release of the company's May 2 earnings, Musk
It must be shown to investors that the situation is manageable and the production of Model 3 is getting better.
People will worry about its gross profit margin and cash consumption.
If management fails to ease investor concerns about this, Tesla's share price could fall to a low of nearly $250.
There is no doubt that the company will lose money this quarter and next.
The question is whether investors will see enough improvements from Tesla to avoid selling stocks.
Investor confidence has been hit and Tesla's shares have been hit.