Buyback Possibility
$Tesla(TSLA.US$ with all the capital expenditures Tesla is doing, it’s highly unlikely they’ll be doing a share buyback…it’d be nice if I was proven wrong tho
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SweetRide : Tesla has cash and fast cash pouring from high volume sales...and stock price is low...be sure they will sooner rather than later.
TeslaSmurf : WRONG
Tesla’s capital expenditure come out from the current annual balance, not from the cash “savings” which are actually about 23billions with no relevant debt. They have MONSTER MARGINS on each car they sell: the highest (by 4X at least of the whole auto industry). That’s where the money for the new factories is computed. What is left at the end of each quarter and year is net profit that SUMS to the 23billions cash.
Prudently, Elon didn’t want to spend that money as we may go through a recession and high interest rates: as Tesla has all that cash, they will pay interests to themselves, not to any bank…
ANOTHER advantage Tesla has from ALL the others who have to borrow money from the system. Gm, Ford, Toyota, Volkswagen, etc. have more than 100 billions debt each (mostly “invested” in the cars leased or loaned in many ways to their customers), but that huge debt generates interest to pay which erodes their margin. Tesla hasn’t that problem as only 5% of their cars is leased, as is much more convenient to own an EV (you pay the interests to the bank with less than the savings on fuel and maintenance).
70658467OP TeslaSmurf: Lol! You refuted yourself in your own statement. Traditionally, if a company has equity in terms of cash on hand, they utilize that to fund their CapEx. Sometimes, they perform offerings or accrue debt to maintain their liquidity, like with banks and they don’t want to potentially become insolvent. The whole reason why other car manufacturers have debt is due to their CapEx, so I’m not really wrong with my statement. Also, the fact that you’re saying they’re being prudent financially would further support the huge potential of no share buybacks….why would you do that if there’s a big possibility of recession looming in the horizon
TeslaSmurf 70658467OP: I confirm what I say, not because I invented it, but because it is written in Tesla’s balance sheet. You may read it, otherwise how can you invest in a company ? By hearing the FUD ? Good luck with that