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Tesla maintains strong operating cash flow, often surpassing its capital expenditure requirements. This careful cash management ensures Tesla can self-fund its ambitious projects without excessive reliance on external debt or equity raises, maintaining strategic flexibility.
Basher stresses that while Tesla’s current margins may look weak, the company’s free cash flow—cash generated after capital spends—is healthy and illustrates its ability to sustain and grow its operations organically.
The Investment Perspective: Waiting for the Fruit to Ripen
From a long-term viewpoint, investments in Tesla are akin to planting a seed. The real payoff—massive revenues from autonomous taxis, humanoid robots, and energy management—will only be evident once these projects mature and scale.