On: Deadlines, delays, and departures dog Tesla Model ...

[kgwgk]

Even if we consider August 2015 as "recently", this money is already included in the $1.8bn (they actually raised $740mn in August 2015).

[dragontamer → kgwgk]

And 400million ish with the preorders.

Then they lost 280 million this most recent quarter. They have 1.4 billion in assets and 1.4 billion in short term liabilities. They need more cash for sure

[mikeyouse → dragontamer]

From an accounting standpoint, all of that preorder cash is likely restricted and won't be available to fund general operations.

[dragontamer → mikeyouse]

It's actually counted as a 'liability' on the balance sheet. So the money is already spent.

Read the terms. The funds are NOT held in Escrow

[mikeyouse → dragontamer]

That's only one side of the transaction.. The cash is also held as an asset as cash on the balance sheet -- likely restricted cash. My only point is that their cash position to build out their production line is probably overstated if you only look at the cash/marketable securities line item.

[dragontamer → mikeyouse]

I read the 8k published on May 4th.

http://ir.teslamotors.com/secfiling.cfm?filingID=1193125-16-...

Restricted cash is only $47 Mil.

I think they're actually accounting the pre-order money as straight up Cash on hand.

> My only point is that their cash position to build out their production line is probably overstated if you only look at the cash/marketable securities line item.

I agree with this. I'm just surprised at how they're accounting for this. I'm fairly certain they consider the pre-order money to be 'cash / cash-equivalents', the $1.4 Billion line item.