Elon Musk told Tesla employees the company will run out of cash in about 10 months unless “hardcore” cost-cutting efforts are made, according to an all-staff email obtained by Reuters and Electrek.
Tesla finished the first quarter of 2019 with $2.2 billion in cash.
Is Tesla in trouble financially?
After two profitable quarters in a row, Tesla is once again in financial trouble. The company has guided down first quarter expectations, and analysts are worried about margins on the new Model 3. Plus, the company has taken on more debt and has a $566 million bill to pay in November.
How much is Tesla’s 2019 debt?
7, 2019. On Friday, close to $1 billion in debt comes due for Tesla, an obligation that will wipe out about a quarter of the company’s cash. According to regulatory filings, Tesla has $920 million in convertible senior notes set to expire on March 1, at a conversion price of $359.87 per share.
Is Tesla profitable now?
Tesla generated $24.6 billion in revenue in 2019, buoyed by a fourth quarter revenue figure of just shy of $7.4 billion. Tesla still didn’t turn an annual profit — in fact, it lost $862 million in 2019. Tesla finished the year with back-to-back profitable quarters, something it did for the first time ever in 2018.
Will Tesla go broke?
Elon Musk told Tesla employees the company will run out of cash in about 10 months unless “hardcore” cost-cutting efforts are made, according to an all-staff email obtained by Reuters and Electrek. Tesla finished the first quarter of 2019 with $2.2 billion in cash.
Is Tesla financially healthy?
Tesla’s financial health has improved in recent years. However, Tesla reported effectively zero year-over-year revenue growth, slimmer operating income, and modestly improved adjusted profit in Q4 2019, hardly the picture of a company that should quickly appreciate 60 percent in rapid fashion.
Why is Tesla in so much debt?
On Friday, close to $1 billion in debt comes due for Tesla, an obligation that will wipe out about a quarter of the company’s cash. If the shares were valued at the conversion price, the bonds could convert into Tesla stock, and Tesla wouldn’t need to pay the debt in cash.
How big is Tesla’s debt?
Tesla had about $13.3 billion in total debt on its balance sheet at the end of September. The company raised its debt this year. At the beginning of the year, the company’s total debt was $11.9 billion. Tesla’s total debt-to-total capital ratio was 64.1% on September 30.
How much is Tesla’s debt?
Tesla has about $13 billion in debt on the books and about $6.9 billion net of cash on hand. Net debt is less than 2 times estimated 2020 earnings before interest, taxes, depreciation and amortization, or Ebitda.
Is Tesla stock a good buy?
Tesla stock is currently not a buy, but it could be in the early stages of creating a new buy point. At current levels, Tesla stock is still at risk of a pullback and it’s not a good time to buy shares with the market in a correction.
Is it worth buying a Tesla?
Now that Tesla isn’t selling the bare-bones Model 3 online, the least expensive car you can buy on its website goes for $39,500. But Tesla lists the car’s price as $28,950. That figure is later described as “after savings,” and the company even displays the per-month cost of a lease in those terms.
Is Tesla Going Broke 2019?
“I’m optimistic about being profitable in Q1 and for all quarters going forward.” Just a few months ago, Elon Musk made the bold prediction that Tesla would be profitable in all quarters going forward. Instead, Tesla has recorded a $689 million operating loss through the first half of 2019.