Close ad

The question is where does the technology giant Tesla get its financexperts have been worrying about the development and overall operation of the company for a relatively long time. The company has reported losses almost every quarter since its inception, but not only remains on the market, but continues to introduce new and new products. YouTube channel The Rest of Us explains the company's story and situation in an interesting and simple animated video.

Cash is behind everything

Although Tesla has been at a loss on paper for most of its time on the market, it still has financial resources. Cash is to blame. In a theoretical sense, this means that Tesla can continue to show losses, as long as the coffers are regularly replenished in the form of cash.

You must be wondering where the huge amount of cash is coming from to keep the company from going bankrupt. This is due to the fact that the company makes a decent margin on every vehicle sold, and it often happens that the cash in the form of a deposit arrives even before the vehicle is even put into production. Well, there is even more hidden behind the team. Tesla supplements its financial reserves from the stock market but also in the form of borrowing - financdebt-based financing.

Investment prospects for the future

No sane investor or shareholder would put money into a failing company. So why are they investing in Tesla? The answer is completely logical. Similar to Elon Musk and other leading members of the company, as well as investors, are looking to the future. An important fact is what the company plans in the coming years. No other car company has a similar vision to Tesla, which is why huge sums are a kind of investment in better tomorrows.

Demand for Tesla products remains strong. The Model 3 backlog continues to grow, and the Model S and X continue to sell at a steady pace. Tesla may not be able to produce vehicles fast enough to meet demand, but that is absolutely no problem. If the company's waiting list disappears and sales numbers begin to decline, it will be time to really worry about the company's cash flow.

white car charging

Source: teslarati

Today's most read

.