Part 9/12:
Basher highlights that R&D and capital expenses create the foundation for eventual revenue streams. Investors should monitor these investments, not just current earnings, as signals of future growth.
This approach echoes Nvidia’s experience: initial sacrifices in short-term profit can lead to dominant market positioning and exponential stock appreciation later on.
The Role of External Funding and Strategic Flexibility
Tesla’s sizable cash reserves (~$37 billion) and ability to raise debt afford flexibility. The company’s vehicles, especially in autonomous mode, could generate substantial cash flow, potentially covering their costs in months—a scenario where Tesla becomes self-sustaining.