Tesla reported its q1 numbers, and are we in for a surprise, or we aren't? That question depends upon whether we are a Tesla bull or bear. Vehicle deliveries fell short, and apparently had to be shifted to q2. The company still stands by its guidance of 360-400 k vehicles in 2019 representing a 50% plus increase over 2018. With Gigafactory China coming up, the target is 500 k vehicle deliveries.
There was a significant reduction in revenues compared to the previous quarter. Tesla had operating losses of $521 m, and interest charges were $157 m. Cash loss from operating activities were $639 m, and over $300 m capital expenditures meant negative free cash flows of nearly a billion dollars. Tesla also repaid over $500 m of debt. Because of these, closing cash position was $2.6 b compared to the opening position of $4.2 b. The company has a debt of $12 b, and in addition, also had operating leases which are in effect a form of debt.
The management has a guidance of capital expenditure of $2-2.5 b in 2019. So we should expect the company to make cash flows of at least that amount just to breakeven.
To justify the market value of nearly $50 b - never mind the fall post results - Tesla should do a lot more than what it has in the past.
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