Not really, Tesla has $18 billion cash on hand and an established business model that works without opening up the chargers. That means they have the equivalent of more than 6 months of revenue on hand in cash because of the amount of capital they have managed to raise.
Not only that, but their core business model is pulling a profit anyway.
Cash flow is not a particular concern for Tesla right now, they are cash-rich.
Cash-flow after investing activities is not really a thing, unless of course you are looking at companies from a VC-funded SV perspective. Just because you don't need additional cash-flow now doesn't mean you don't need it later. And positive cash-flow allows you to get additional loans, and re-pay those, when needed.
> "Not really, Tesla has $18 billion cash on hand and an established business model that works without opening up the chargers."
True, but building out the supercharger network is expensive and likely still a loss-leader for Tesla. Opening it means that Tesla can generate more revenue from an expensive asset.
> "Cash flow is not a particular concern for Tesla right now, they are cash-rich."
Cash flow is always a concern. Tesla would not stay "cash rich" for long without positive cashflow.
They have positive cash flow though, and also have a giant pile of cash reserves, so why should they worry about it?
Their current financial position means they can make much more strategic decisions about long-term profitability rather than just worry about cash flow.
They always have the option to fallback on cash-flow after outside investment and debt so. Would be a lot easier if Softbank would have the means to get involved so.
Uh..."cash flow positive if investments and the credit part of debt is considered cash flow"? That sounds like a situation you'd really prefer not to be in.
In fact, this is exactly what the market has recently realized separates Tesla from most venture-funded businesses.
That was my point, VC-backed companies, some of them at least, cannot only postpone profitability but also positive cash-flow as long as VC money doesn't try up. Back to Tesla, 14.5bn $ are coming from issuance of stock and issuance of debt. Net free cash flow is 2.5bn, so even if it is not VC money Tesla seems to be living to huge extend from external funding, one way or the other.
That’s fine as long as the external funding is being used to invest in capital / production - see Amazon where their years being criticised for being unprofitable but just supported by external VC funds (if you ignored that the funds were being used to buy capital and expand) quickly turned into one of the most profitable companies in the world.
Not only that, but their core business model is pulling a profit anyway.
Cash flow is not a particular concern for Tesla right now, they are cash-rich.