The biggest troubling of Tesla isn't the short-term free cash flow (FCF) turning negative—the market actually expects to burn $3.25 billion, but actually only $10.9 billion is a "handsome number"; the real chronic poisoning is that the gross margin of the car business has dropped to 16.3%, closer to the level of traditional car manufacturers BYD and Toyota.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
