BullBear45 - Tesla’s share price is 380.36 USD today.
They still rely on positive cashflow through stock offerings and debt issuing as you can read below!
It’s obviously up to you to exit but I am certain your reasoning is not the correct one. Good luck whatever you do!!
Tesla cash outflow or cash burn can be derived from its historical free cash flow which is measured by deducting capital expenditures from operating cash flow. As the chart shows, Tesla has been generating negative free cash flow in most quarters from 2015 to 2020, signaling that the company has used more cash than it could bring in.Tesla cash on hand has been sufficient to cover its cash outflow in most reporting periods, judging from the surplus of cash on hand after accounting for negative free cash flow.
Though Tesla continued running its business at negative free cash flow in most quarters, the company did it by raising capital through stock offerings and debt issuance as seen from its cash flow from financing activities. This has resulted in the increasing cash reserves in the company balance sheet for the last 5 years.
