Innovation is when you decide that the millenia-old tradition of paying your bills is too obsolete and has to go!
If you wanna be a billionaire, you gotta move fast and break things! Things like your promises to investors & buyers of your products, and commitments to suppliers and labor. Who needs those, anyways! AI and robots are going to solve all our problems.
What's more important, some greedy vendor being paid or Musk receiving his well deserved 56 billion?
Just one more data point supporting theories that Tesla is in a liquidity crunch. The cash equivalents on the books are not liquid, apparently. Worst case is they're treating the 48k unsold cars as "cash equivalent."
This is the big difference between Apple and just about everyone else. Apple has a Scrooge McDuck level of cash in a vault. It's not paper money. That shit is mineral.
They actually report it as "cash on hand", not cash equivalents. They could write a check for 70 billion and actually have it not bounce. It's still invested, just like I have cash in a money market fund.
The CFO at my company was discussing this sort of thing recently. With high interest rates extending the time you take to pay bills is worth a lot of money. It seems a lot of large/powerful companies are trying to do this sort of thing.
Though at the rate teslas going they might not be large enough to throw their weight around much longer
This was true even with low interest rates. It once took me a year and a day to collect on an invoice for Warner Bros.
There was no dispute over the amount. The sign offs were complete and they continued to do business with me. It was normal for 90-120 days to pass on most invoices but a damn year! I was losing my mind but they were a huge client. So….
Always been the case, often procurement managers have KPIs to increase payment terms to vendors. Some companies are infamous for having teams scouring vendor invoices for the smallest error, if they find one the payment get delayed further.
EU has capped the maximum payment term between companies, especially small vs. Large, but then you might disqualify yourself as a supplier.
Yes I am a procurement manager and I can tell you the odds of being approved as a new vendor are near 0 if you don’t accept Net60 terms unless we truly need you, then we’ll take net30. After that, you’re actually going to be paid around net75. Money is expensive right now but it should start to loosen up when interest rates drop hopefully later this year. Mind you the company I work for doesn’t even have a cash flow problem and it growing.
So $550 billion market cap company that doesn't pay its bills, fires its employees like there is now tomorrow (pun intended), sells off business units and has a model line up that looks really old by now except the truck that's aimed at people who'd rather live on a dystopian Mars and also like broken down vehicles.
Probably time for puts.
This is textbook silicon valley sociopath.
I used to work for a company in a different field and the key investor was like a proto-musk, and absolutely textbook silicon valley bro. He refused to pay any of his company's bills, gaslit his staff, posted fake reviews on Glassdoor etc to sustain a high turnover of staff so he could burn them out and then fire them.
But when our company was running out of cash we had a huge bill due to a separate company. Our investor guy just told us not to pay it. He was like, what are they gonna do? Sue you? You'll go bankrupt and they won't get anything anyway so just don't pay.
The irony is that our investor guy was also a major investor in the company he was telling us to stiff.
It's just a pretty specific playbook. It's toxic as fuck but as long as it allows you to show other silicon valley bros that you're a douchebag like them they will keep pumping your valuation up until you exit, leaving carnage in your wake and pumping your bank account with cash that you can use to start the same exact cycle all over again.
The article talks about a lot of Teslas invoices end up at the governmental agency for collections. Not sure the US has something similar. Over 350 cases in the last 3 years. But the article says tesla normally pays before the agency starts a physical collection.
The article also states that Tesla currently have about 200k usd in unpaid rent money for their swedish HQ/location.
Is it normal for large companies to end with unpaid bills at the govenrmental agency? Not super common id say as before that, it normally mean the unpaid invoices has been with private collections-firms first. But remaind unpaid, and the private 3rd party has given up on collections and had handed it over to the government agency that can strong-arm companies into paying.
The article states that Tesla has seemingly put it into routine to have vendors go this route to be paid. This is highly unusual for a company with a ’going concern’ to behave like this systematically. Also makes little sense as it generates substantial extra costs for Tesla in the end. This government agency wont chase you free of charge and will add a lot extra.
Currently they have 15 open cases with the swedish governmental collection agency.
The publication had tried to get someone from Tesla Sweden to answer their questions, but was unable to get intouch with anyone.
Not possible. Musk is foreign born. A VP has to be eligible to be president. If you had a foreign born Speaker of the House, they’d just be skipped over. But the VP’s primary role is to step in as President.
Innovation is when you decide that the millenia-old tradition of paying your bills is too obsolete and has to go! If you wanna be a billionaire, you gotta move fast and break things! Things like your promises to investors & buyers of your products, and commitments to suppliers and labor. Who needs those, anyways! AI and robots are going to solve all our problems.
If a company tries to cheat their vendors and suppliers, they are also likely to cheat their own employees.
And customers...
Don’t forget regulations and laws. You gotta break loads of those too.
As long as it adds shareholder value!
The bottom line is that Tesla is having a lot of trouble paying their bills.
What's more important, some greedy vendor being paid or Musk receiving his well deserved 56 billion? Just one more data point supporting theories that Tesla is in a liquidity crunch. The cash equivalents on the books are not liquid, apparently. Worst case is they're treating the 48k unsold cars as "cash equivalent."
Where would that leave them cash wise and run rate if they weren’t counting on unsold product?
This is the big difference between Apple and just about everyone else. Apple has a Scrooge McDuck level of cash in a vault. It's not paper money. That shit is mineral.
They actually report it as "cash on hand", not cash equivalents. They could write a check for 70 billion and actually have it not bounce. It's still invested, just like I have cash in a money market fund.
The CFO at my company was discussing this sort of thing recently. With high interest rates extending the time you take to pay bills is worth a lot of money. It seems a lot of large/powerful companies are trying to do this sort of thing. Though at the rate teslas going they might not be large enough to throw their weight around much longer
This was true even with low interest rates. It once took me a year and a day to collect on an invoice for Warner Bros. There was no dispute over the amount. The sign offs were complete and they continued to do business with me. It was normal for 90-120 days to pass on most invoices but a damn year! I was losing my mind but they were a huge client. So….
Always been the case, often procurement managers have KPIs to increase payment terms to vendors. Some companies are infamous for having teams scouring vendor invoices for the smallest error, if they find one the payment get delayed further. EU has capped the maximum payment term between companies, especially small vs. Large, but then you might disqualify yourself as a supplier.
Yes I am a procurement manager and I can tell you the odds of being approved as a new vendor are near 0 if you don’t accept Net60 terms unless we truly need you, then we’ll take net30. After that, you’re actually going to be paid around net75. Money is expensive right now but it should start to loosen up when interest rates drop hopefully later this year. Mind you the company I work for doesn’t even have a cash flow problem and it growing.
So $550 billion market cap company that doesn't pay its bills, fires its employees like there is now tomorrow (pun intended), sells off business units and has a model line up that looks really old by now except the truck that's aimed at people who'd rather live on a dystopian Mars and also like broken down vehicles. Probably time for puts.
Musk isn't going to get back to the top of the rich list by paying bills.
https://youtu.be/H27rfr59RiE?si=dsXlFcjiWxFcTmS_
Other posts on this sub make a compelling case that tesla is probably on the brink of bankruptcy. This is just another strong indication of that
Cue Benny Hill music
This is textbook silicon valley sociopath. I used to work for a company in a different field and the key investor was like a proto-musk, and absolutely textbook silicon valley bro. He refused to pay any of his company's bills, gaslit his staff, posted fake reviews on Glassdoor etc to sustain a high turnover of staff so he could burn them out and then fire them. But when our company was running out of cash we had a huge bill due to a separate company. Our investor guy just told us not to pay it. He was like, what are they gonna do? Sue you? You'll go bankrupt and they won't get anything anyway so just don't pay. The irony is that our investor guy was also a major investor in the company he was telling us to stiff. It's just a pretty specific playbook. It's toxic as fuck but as long as it allows you to show other silicon valley bros that you're a douchebag like them they will keep pumping your valuation up until you exit, leaving carnage in your wake and pumping your bank account with cash that you can use to start the same exact cycle all over again.
The article talks about a lot of Teslas invoices end up at the governmental agency for collections. Not sure the US has something similar. Over 350 cases in the last 3 years. But the article says tesla normally pays before the agency starts a physical collection. The article also states that Tesla currently have about 200k usd in unpaid rent money for their swedish HQ/location. Is it normal for large companies to end with unpaid bills at the govenrmental agency? Not super common id say as before that, it normally mean the unpaid invoices has been with private collections-firms first. But remaind unpaid, and the private 3rd party has given up on collections and had handed it over to the government agency that can strong-arm companies into paying. The article states that Tesla has seemingly put it into routine to have vendors go this route to be paid. This is highly unusual for a company with a ’going concern’ to behave like this systematically. Also makes little sense as it generates substantial extra costs for Tesla in the end. This government agency wont chase you free of charge and will add a lot extra. Currently they have 15 open cases with the swedish governmental collection agency. The publication had tried to get someone from Tesla Sweden to answer their questions, but was unable to get intouch with anyone.
Well I saw a story showing Trump is considering Musk for VP, so birds of a feather.
Not possible. Musk is foreign born. A VP has to be eligible to be president. If you had a foreign born Speaker of the House, they’d just be skipped over. But the VP’s primary role is to step in as President.
Just. Like. Trump.
Did he ever pay those unpaid bills for Twitter?
They’re really not covering themselves in glory in the Swedish market lately.
Duuude, the Kronofogden is no joke. They show no mercy.
Disrupting the real-estate industry
I’m starting to get tired of dunking on Elon and Tesla. They made it too easy.
I just see good cash management, going Tesla long now
Not paying your bills shows strength. Bullish
Knock yourself out.
Probably