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Cashed in a large amount of ZEV credits, for a one-time revenue bump of $140MM. Excluding that, GAAP loss was $117MM. Big increase in accounts payable. But, all things considered, that's not bad.
Note that this occurred while Model 3 production is still starting.
SCTY acquisition is locked up. EDIT: Elon just said on the investor call "Our current plan requires no capital raise whatsoever for the Model 3 production . Solar City will be neutral to cash contributor in Q4.
I imagine this is because the majority of revenue is spent on growing the buisness, rather than going into profit (As profit = revenue - expenses). As Tesla still has a lot more space to grow. Same method Amazon did until recently for years.
Cashed in a large amount of ZEV credits, for a one-time revenue bump of $140MM. Excluding that, GAAP loss was $117MM. Big increase in accounts payable. But, all things considered, that's not bad.
> The Tesla third quarter results reflect strong company-wide execution in many areas. Furthermore, we expect this to continue into Q4 and project positive GAAP net income (excluding non-cash stock-based compensation) despite ZEV credit sales in Q4 likely being negligible.
> I thought it was important to write you a note directly to let you know how critical this quarter is, The third quarter will be our last chance to show investors that Tesla can be at least slightly positive cash flow and profitable before the Model 3 reaches full production.
It's unfortunate there's a bit of a reality distortion field around discussion Elon Musk's companies sometimes. Maybe because everyone wants his companies to succeed...
[1] http://www.economist.com/news/business/21709061-entrepreneur...
[2] http://www.economist.com/blogs/economist-explains/2016/10/ec...
I imagine this is because the majority of revenue is spent on growing the buisness, rather than going into profit (As profit = revenue - expenses). As Tesla still has a lot more space to grow. Same method Amazon did until recently for years.
Excellent! Thank you for pointing that out. "Profit" is a comical term, how can we measure the net savings for humanity-at-large from such endeavors?
As long as Musk decides to roll all revenues back into operations, investors get nothing. Musk has a reputation as someone who doesn't really care all that much about his investors, this is a move carefully designed to massage that image. Musk still doesn't care about his investors, but throwing a little cash their way keeps their voices from building to a crescendo.
As for what humanity is getting out of the deal, they already got the Model S and X, it's soon going to get the 3.