So long as Tesla's not too proud, they're current financing issue shouldn't be a problem
Tesla burned through $675 Million in cash last quarter and they only have $3.3 Billion on hand. So there has been a lot of talk Tesla maybe running out of gas before it can realize its vision.
The revenue numbers don't lie, but they only tell a very small part of the story. Here are some other numbers:
- Revenue for the most recent quarter is up 43% year-over-year to $3.29 Billion.
- Despite production issues and delays, there is a still a massive (growing, in fact) waiting list for the Tesla Model 3.
- Demand for electric vehicles is surging.
Could they run out of money? Yes. Will they? It depends on how much pride Musk has. In order to facilitate it's many lines of business, Tesla should mitigate it's financial liabilities by pursuing joint ventures in its many non-core lines of business--batteries, solar, trucks. By doing so, they can limit their liabilities, receive an infusion of needed cash and take on the complementary assets of joint venture partners.
For instance, if Tesla were to partner with Peterbilt or Mack on its electric semi, it would get a lot more than just cash. Tesla would receive:
* Manufacturing expertise and infrastructure
* Sales personnel, expertise and relationships in the trucking industry.
Tesla could design and innovate. Peterbilt/Mack could manufacture and sell. And for this, Tesla would have to surrender a significant cut of revenue but it could capture more market share faster than it would be able to on its own. If Musk is open to these trade-offs, it would solve a whole host of problems. Similar partnerships would be available for other lines of business. For instance, perhaps partnering the solar business with a large, luxury home builder like Toll Brothers.
The question is: is Musk more interested in being "the man" or is he more interested in winning? We'll soon find out.
