Today I want to discuss the financials of Tesla Motors.
The reason for this is that I’ve recently been watching a youtube channel called Now You Know that show a lot of news about Tesla Motors.
So I thought that I should look into the hype and see for myself if there was anything to it.
What I did was that I went to Tesla’s website and I downloaded their financial reports.
The numbers are shocking.
Tesla has been in business for almost ten years and in none of those they have made any money.
Granted, the loss last year was less than the year before, but still the second largest loss out of these ten years.
Looking at the balance sheet it’s very much the same story.
Its total debt is a staggering 16.8 billion dollars and the free cash flow is a negative 1.4 billion.
No wonder that the stock is losing more than 5 percent as I write this.
Who in their right mind would want to invest in something like that?
It’s clear that if you buy Tesla stock you hope that the earnings will materialize in the future.
At $259 those hopes are very expensive.
Elon Musk may be an excellent visionary, but his abilities as a CEO of Tesla Motors are not as good.
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