No. of Recommendations: 1
I concur with Denny S. in many ways.

The key thing with Tesla right now is their cash position. As of 3/31/2019, they were down to $2.2B of unrestricted cash. Their Q1 2019 free cash flow was -$920M with deliveries of 63,000 vehicles for the quarter. That number included something like $150+ million of regulatory credits which were not known about at the time of the quarterly release and conference call last Wednesday 4/24, but were only revealed via the release of the 10Q.

The April deliveries estimate today from InsideEVs included 10,050 Model 3's delivered in the U.S.

Can overseas deliveries here within Q2 or an uptick in U.S. sales in Q2 and Q3 save the day for Tesla? If not, and with no capital raise, they'll need to start slowing the factory down substantially to keep the lights on until September.

It is a simple matter of math and cash.

Does anyone actually believe what Elon said a few weeks back that a Tesla vehicle is an appreciating asset? If you do, why don't you go buy up a fleet of them to use as a cash generating robo-taxi business in the future?

-TQP
Obvious Disclosure: Short TSLA
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