Elon Musk is asking investors to take a leap of faith on his costly bets in self-driving technology and humanoid robots that have yet to generate meaningful revenue.
It raises a key question for investors: whether Tesla's rising spending can be justified without the kind of established, high-margin cash engines that allow Big Tech peers to fund bigger investments.
As Musk spends big to double down on artificial intelligence, robotaxis and robotics, the company expects negative free cash flow for the rest of the year after posting a surprise $1.44 billion surplus in the first quarter.
Tesla's $25 billion spending plan tests investor faith in unproven AI bets
byu/app1310 instocks
Posted by app1310
3 Comments
They posted that surplus because they did not pay their suppliers that quarter by moving contract payments for later….
How much did SpaceX pay for the Cybertrucks?
I’m tired of doomer posts – we agree the valuation for Tesla is overhyped, but they “met” earnings & are well positioned for the future.
Whether they will be able to capitalize on it, we will have to see.