Tesla Now Expected To Turn Cash Flow Positive By Next Year

From Tech
March 20, 2017 - 1:44pm
Deutsche Bank said in a note on Monday that Tesla Inc (NASDAQ: TSLA)'s targeted Model S production of 90,000–100,000 units per quarter or 7500 per week and the 25 percent gross margin guidance for 2018 corresponds to the company reaching break-even free cash flow. Even with its blended vehicle gross margin forecast in the low 20 percentage (with Model 3 gross margin assumption at mid- to high-teens), the firm expects the company to turn cash flow positive in 2018. Bleeding On Cash Flow Tesla said in its latest 10-K filing that it had a negative operating cash flow of $123.829 million in 2016, narrower than the outflow of $524.50 million in 2015. Free cash flow is operating cash flow, less capital expenditure. Production Estimates Analysts Rod Lache, Mike Levin and Robert Salmon expect the company to produce 22,000 Model 3 units in 2017, with 20,000 of them coming in the fourth quarter. In 2018, the company is ...Full story available on Benzinga.com


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