
Tesla swimming in debt with a negative $455M cash flow - DLay
http://www.cnbc.com/id/102421772
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Shivetya
There is something seriously wrong at Tesla and they are doing their best to
pretend otherwise. Their failure to execute in China is a monumental failure,
not a small one. Their blaming delivers on vacation shows a complete lack of
competence

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PhantomGremlin
Today's stock reaction proves that nobody cares. Tesla is _still_ a beloved
cult stock. Its current valuation isn't supported by any rational estimates of
its growth and future profitability.

Here's another example of Musk's delusion, from the conference call:[1]

    
    
       If you take this year's revenue, around
       $6 billion or thereabouts, and if we are
       able to maintain a 30% growth rate for
       10 years, add to your 10% profitability
       number, and have a 20 P/E, our market cap
       would basically be the same as Apple's
       is today.
    

Yeah, good luck with that.

[1] [http://www.thestreet.com/story/13044398/1/elon-musk-just-
mad...](http://www.thestreet.com/story/13044398/1/elon-musk-just-made-a-
staggering-comment-comparing-tesla-to-apple.html)

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PhantomGremlin
You downvoters have only proven my point that Tesla is a cult stock. Nobody
owning or admiring a cult stock ever wants to be told it's a cult stock.

May I remind you that Musk has a long way to go before his legacy matches that
of St. Steven of Apple.

Last September Musk said "I think our stock price is kind of high right now,
to be totally honest". The stock eventually fell from $279 to $203 today.

So now Musk says he thinks his current market cap is only 4% of what it could
be in a decade. Really? Quite a change from "kind of high". His market cap
needs to compound at about 45% a year to achieve that. That puts it into the
top 1% of all stock bargains.

Don't downvote me. That's too easy. Instead, go buy the stock. Buy $35,000 of
it. If Musk is right, your stock will be worth $1,000,000 in ten years. After
all, Musk also said "I am hopeful that we can do this without any significant
dilution to the company".

~~~
userulluipeste
"I think our stock price is kind of high _right now_ , to be totally honest"

"Musk says he thinks his current market cap is only 4% of what it could be _in
a decade_."

I don't understand what does it mean when you say «Quite a change from "kind
of high"» - one stated the current situation (given the company assets and
dynamics), the other is a future projection. Where did you see a
change/contradiction?

~~~
PhantomGremlin
One way to look at a current stock price, especially one that doesn't pay a
dividend, is strictly as "a future projection". That's how investors arrive at
a price. Using the words "right now" doesn't remove that aspect of stock
valuation. Without a dividend and without a future projection a stock is
worthless.

Why would anyone pay even a nickel a share for Tesla, unless they were making
a future projection and discounting it back to the present?

Musk's September 2014 statement and his February 2015 statement were both
future projections as far as I'm concerned.

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ciconia
What a ridiculous article! This is a "last warning" from Cramer? I bet Musk is
really shaking in his boots now.

