But Tesla was able to turn its cash burn into a cash churn and then used the cash to redeem its highest-paying debt. In 2018 investors were concerned about Tesla’s significant indebtedness, which at the time totaled around $12.0 billion in outstanding debt. And despite capital expenditures of more than $6.0 billion, Tesla had a free cash flow of over $3.5 billion in 2021. Automotive sales grew from $8.5 billion in 2017 to $19.4 billion in 2019 to $44.1 billion in 2021. The growth in Tesla’s net income was driven by its ability to step up its operations, mostly by scaling up the production of Tesla’s best seller, the Model 3. And while the annual numbers are not yet available for 2022, Tesla reported a net income of over $5.5 billion in the first six months of 2022-surpassing its income in the entire year of 2021. Tesla reached a nadir in 2017, with a net loss of $2.2 billion, which flipped to a net profit of $721 million in 2020 and $5.5 billion in 2021. A witty Bloomberg headline said it all: “ Tesla Doesn’t Burn Fuel, It Burns Cash.”īut things have changed. In 2017, Tesla burned $1.4 billion in the last quarter of the year. It feels as if it was only yesterday that Tesla was desperate for cash. It is hard to believe that Tesla is even entertaining a share repurchase. When it comes to its financials, Tesla is a Musk should be commended for being in the position to even thinkĪbout buybacks at this point. Stock price this year, Tesla scores highly on this professor’s That pay dividends and repurchase their shares-it is time to assess theĬompany’s financial management. “not getting a Tesla” is not an option, I am picking up the car in a couple of weeks and it’s something I’ve been thinking about for years so I’m going to live a little and splurge.Now that Tesla plans to join the “payout club”-that is, those companies So, finance gurus, which path would you pick? The initial reason I cashed out the RSUs was to diversify my portfolio but I’m leaning towards option A just to avoid the massive payment that comes with a 100k car loan. D) pay off car b, put 20k down on the Tesla and invest the rest.C) put 50k down on the Tesla and invest the rest.B) put 20k down on the Tesla and invest the rest.A) buy the Tesla outright for cash while trading in car a.Here are my options that I’m considering: the loan for the Tesla would be between 3 and 3.5% (interest rates have really gone up in the past few months).just cashed out 140k in vested RSUs and currently sitting on the cash (for about a week).been putting a bunch of money into home improvements so don’t have a ton invested in bonds, etc but will be doing more of that starting next year after we’re out of the home improvement dance.currently just dabble in stocks but have about 550k in RSUs at work that are vesting over the next couple of years.also put a bunch into a 529 for my daughter make about 300k/year in base plus I get RSUs every year.I have the cash available to buy it outright but I’m not sure that’s the best use of my money. The total amount for the Tesla is going to be about 115k after taxes and all that Jazz. * car b has about 37k left on it with an interest rate of 3.49% * Car a has about 19k left on it and trade in value is 22,5000 Two cars currently, both with loans on them. Before anyone says anything, I’m aware this isn’t a great financial investment but it’s something I’m splurging on. Hey all, I’m trying to figure out the best way to pay for my Tesla. Here, please treat others with respect, stay on-topic, and avoid self-promotion.Īlways do your own research before acting on any information or advice that you read on Reddit. Get your financial house in order, learn how to better manage your money, and invest for your future.
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