Meanwhile, its trailing operating cash flow is just $2.6 billion. According to the chart, Tesla’s cash on hand has been more than enough to cover what the company has spent in the last 5 years. Tesla Vehicle Deliveries It’s simply due to the capital-intensive nature of the automobile business. Here is what Tesla said about restricted cash in the financial statements: Restricted Cash The graph above shows Tesla historical cash on hand or cash reserve for the past 5 years from 2015 to 2020. Tesla Inc. quarterly cash flow and in depth look at TSLA operating, investing, and financing activities. The direct method of forecasting cash flow relies on this simple overall formula: Cash Flow = Cash Received – Cash Spent. This amount of cash generated from net cash from financing activities is also shown in the chart above. Going forward, Tesla will be having enough cash in the bank to pay for its business expenses and invest for future growth. And its free cash flow of $2.8 billion was up 158% from a year earlier, a dramatic turnaround from 2018 when Tesla was burning through cash and in danger of running out of money. In the same quarter, the company generated $1.9 billion in free cash flow, leaving plenty of cash around for the next quarter and the rest of 2021. Specifically, Tesla has bought about $1.5 billion of bitcoin in Jan 2021 according to the following excerpt. Tesla cash on hand has been sufficient to cover its cash outflow in most reporting periods, judging from the surplus of cash on hand after accounting for negative free cash flow. Featured images in this article are used under creative commons license and sourced from the following websites: Marco Verch. If you want to follow the “consensus,” you would have missed the sharp rally in Tesla as well as NIO. GM Trucks and SUVs Sales While Tesla may have been free cash flow positive in recent quarters, the amount does not seem to be large enough to grow Tesla’s cash position to the existing level. ... Wright’s Law has forecast cost declines successfully in more than 60 technologies ranging from solar power to ... ARK assumes that Tesla will invest any incremental cash … A rise of 160 percent doesn't look tough for Tesla stock based on the momentum. Be reminded that debt repayment and refinancing do not fall into the operating activities of the company and hence, it’s not part of the cash outflow discussed here. This high-expense and high-cost business environment often mean that Tesla needs a very large cash position to deal with the expanding business and thus, the growing working capital requirement. Annual cash flow by MarketWatch. He expects the first trillionaire to come from the green energy ecosystem. Sometimes the business can use up more cash than it can generate during the normal course of the business operation. Given Tesla's high growth, it might continue to trade at elevated valuations in the foreseeable future. Copyright 2013-2021 by Stock Dividend Screener. Tesla free cash flow for the twelve months ending December 31, 2020 was, a year-over-year. Tesla’s cash outflow in the chart is basically the same as the quarterly free cash flow which we discussed earlier. For this reason, Tesla current asset has also been increasing over the years. Source: Tesla Q3 2019 Update Letter. Tesla Investments in Bitcoin Tesla Inc. SNPR SPAC Joins the EV Charging Bandwagon With Volta Merger, General Motors Could Repeat Ford’s Magic in Q4 Earnings. The operating cash flow can be a positive or negative number, depending on whether Tesla’s business operations can generate a positive or negative operating cash flow.

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