The cash is not gone, they have cash now than they did Dec 31. Development of Model X may cost $, but you get Model X out of it. Regardless of that, they've delivered 4000+ Model S since Dec. 31, and have the revenue from those cars.
Anybody who has been in any kind of projects should know that most of them have cost overruns. The more complex the project especially with cutting edge tech, the more the cost overrun. Most folks who build a custom house, versus a cookie cutter home, will experience a 10%-20% cost overrun.
I can tell from experience that projects such as offshore platforms, drilling production projects will have a contingency of at least 10-20%. When it involves deep water, deep wells and new field development costs can double, much higher that say a simple refinery which also has cost overruns.
We all know about defense or aerospace projects. There is the white elephant F-22, and F-35 that use cutting edge stealth tech and gas turbine tech, etc.
Tesla actually has a built a greenfield plant way below the typical cost. They got the old plant for next to nothing. They got almost brand new metal presses from the bankrupt US auto industry for next to nothing. Yes, they had to buy precision welding and assembly robots from Germany, dies from Japan, etc. Their design, manufacturing plant, battery tech, electronics, etc were all using relatively new tech. With limited resources, they have achieved quite a bit. Elon has a track record of success going to Zip2, PayPal, SpaceX, etc. Where do you want to place your bets? Elon Musk or a bunch of short analysts can not change the oil and filter in their fancy leased Porsche?
I am not saying that Tesla has risks. They have all kinds of risks. However, I think the odds favor the long side at this time. With short interest at 50% of the float, cost of borrowing shares at 30%, it is riskier to be short than long. Long is risky too. The macroeconomic risk is hi too with all the Ponzi scam the government is running.
((( Tesla actually has a built a greenfield plant way below the typical cost. )))
That's just insane. NUMMI had no net asset value according to Toyota who dumped it on Tesla. The soil is polluted. Tesla is on the hook to clean it up. It's not a greenfield it's a brownfiled. They have yet to put the cleanup obligation on the books.
Besides none of that matters. Tesla had a share offering to raise money for Model X development and it's all gone. They are down to $60 million available cash (the rest belongs to reservation holders) and the Model X is cancelled or delayed.
Another crazy rant by a top Tesla hater on this board. He has no idea of Tesla's cash position at this point in time. No financials have been released since end of Q4. They likely have more cash on hand from production, delivery and sales of cars since January 1, 2013. I'm seeing $202Million, cash and equivalents, end of Q4 2012.