Tesla Mostly Debt-Free After 20 Years, Sets New Precedent For Industry

  • 📰 InsideEVs
  • ⏱ Reading Time:
  • 58 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 26%
  • Publisher: 51%

United States News News

United States United States Latest News,United States United States Headlines

Tesla Mostly Debt-Free After 20 Years, Sets New Precedent For Industry via insideevs.com

, showing that both of the legacy manufacturers are swimming in debt. Meanwhile, Tesla could pay off its remaining debt tomorrow if it wanted to.

Currently, Ford has a total long-term debt of $140 billion, while GM is right behind with $115 billion in the same category. Tesla, on the other hand, has just $5 billion in long-term debt, and plenty of cash to show for it. In fact, the company has $22 billion in free cash flow, meaning that its cash minus debt gives it a $17 billion surplus.

To be sure, the auto industry requires high capital expenditures to some extent, largely due to the expensive materials involved, as well as labor and equipment for production. Automakers also need top-of-the-line research and development, which can be costly from an investment standpoint. Cobb attributes Tesla’s low debts to a few different things, with the first being its sleek lineup of cars, innovative technology and its overall dedication to renewable energy and sustainability. Through this and CEO Elon Musk’s ability to create investor buzz on social media, Cobb points out how Tesla was able to go from a startup to a soaring stock with a high valuation around 2020.became highly valued, the company gained access to equity funding instead of typical debt financing.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Worst conceivable time for a company to have to borrow

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 579. in US

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

U.S. stocks end mostly higher as banks helped buoy S&P 500 after First Citizens dealU.S. stocks closed mostly higher Monday, as bank stocks climbed after First Citizens BancShares agreed to buy failed Silicon Valley Bank’s deposits and loans. The Dow Jones Industrial Average finished 0.6% higher: The roller coaster ride S&P 500 🎢
Source: MarketWatch - 🏆 3. / 97 Read more »