Professor Elam

Tuesday July 24, 2018

The WSJ reveals that Tesla asked for cash back from suppliers.

Tesla has been burning through cash at a rate of about $1bn a quarter, or more than $7,430 every minute, according to data compiled by Bloomberg, and finished the first quarter with $2.7bn in cash on hand.

My students tell me TESLA is a can't miss deal based on Elon Musk success in space. I contend the two are totally different exercises. TSLA has depended on debt, govt subsidies and wild valuations, TSLA is worth more than Ford!. The jury is still out on whether TSLA is the next KIA or hDeLorean DMC.  One would think Musk would sell more stock given the rich valuation. The company is losing $13.97 per share.