Presumably cash flow positive in December means they’re expecting to be selling 250 units per month by then (not just producing). If that’s the case, then wouldn’t they run the production line at full capacity for the first couple of months, stockpile the excess, and then slow down later if the sales don’t start to look like they’re accelerating? Presumably, if the genuine expectation is to be selling through the full capacity of the current setup within six months of it opening, they’ll want a stockpile to cover likely higher sales in early 2019 until they can get the next line open.
I guess that running the line at sub-full capacity then ramping up in line with sales doesn’t sound to me compatible with a genuine belief the target of cash flow positive will be hit. Or it means they’re not thinking past December.
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