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Seeking Alpha article:

Jim Chanos cuts 'painful' Tesla short, sticks with bear bet on IBM

"It’s whatever people want to believe Elon Musk is touting," says Chanos, noting the company's five straight quarters of profit are thanks to sales of regulatory credits, not automobiles.

One has to wonder if fund managers ever ran an industrial business. One of the biggest problems a startup has is getting working capital, that's the whole reason for the venture capital industry. Growth needs lots of capital to fund fixed assets and inventory, the faster you grow the more capital you need. If you don't understand this you say what Chanos said above. The holy grail for a startup is cash flow to fund growth. How many years did Amazon go before turning a profit?

"Regulatory credits" are Manna from Heaven! Maybe not from Heaven but from green activists. ;)

As I recall, TTM regulatory credits funded about one third of Giga Berlin. Tesla is going to get even more during the coming quarters until the incumbent car makers get their EV act together.

Free money you don't have to return! Competitors funding your business.

Denny Schlesinger

Also posted at NPI
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