Will Tesla Burn Through Its Remaining Cash?

A $9 million hedge fund concluded that Tesla Motors — in which I have no financial interest — will burn through its cash. The key assumption underlying that conclusion is that if the company charges $35,000 for its Model 3, Tesla will lose so much money that its cash will go up in flames.

Should you flee its shares? They look risky to me.

I will update this post should Tesla respond to my request for comment.

Before getting into Tesla’s cash forecast, let’s take a look at a concept I wrote about eight years ago — The Value Cycle — the idea that in order to sustain superior performance, a company must keep turning the strategy wheel through three distinct processes.

Read More

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s