Analysts seem to talk about Tesla’s “cash problem” often, especially leading up to the $920 million bond repayment and after the Model Y event. Tesla has access to so many sources of liquidity that the “cash problem” is a mythical problem.
I planned to write my usual straightforward analysis forecasting Tesla’s Q4 financials. Then this headline caught my attention: “Tesla Short David Einhorn Says Last Quarter Was ‘As Good As It Gets.’”
There has been intense focus in the media this year on Tesla’s financials and Tesla’s debt. The media coverage would make you think Tesla is one of the only companies in the world that takes on a large amount of debt. Not only is that obviously not true, but a certain James Stephenson took to Twitter yesterday to highlight in bubble chart format how dramatically unbalanced that narrative is when you compare Tesla’s debt to GM’s debt.
