Tesla's Cash Conversion Cycle Duplicate

While technical tidbits and the latest gossip, not to call it news, might be interesting, what counts is buying companies that are long term survivors whose stock bounces back after the unavoidable market crashes. You can’t go broke while you can pay your bills and debts. The magic ingredient is cash!

Case in point, I’m hoping $TSLA will drop some more this month and I’m lining up cash to add about 10% to my Tesla holding. If instead $TSLA rockets up after earnings, I’ll use some other tactic. With Enphase I was able to bring down my cost basis by over 6% with covered calls since August 1. No ENPH options now, waiting for the next earning report later this month.

Tesla’s Cash Conversion Cycle

X-post at METaR: Tesla's Cash Conversion Cycle

The Captain

"Tesla’s Cash Conversion Cycle:
Title has already been used! :roll_eyes:

OK, I’ll use a Duplicate :innocent:

What an idiot user interface Crap, crap, crap!!!


Musk selling shares to finance Twitter purchase must be a source of downward pressure. Plus bear market and fear of recession etc. Good opportunities may be ahead.

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I thought that back when he sold after the initial announcement of buying twitter he said that was all that needed to be sold. Why would he need to sell more? Other investors backing out?


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No one knows if he needs to sell more shares. About $46 billion is required to complete the transaction. He’s got direct financing (ie. conventional debt that will land on TWTR’s balance sheet) lined up for $13 billion, and about $7 billion in equity commitments (at least, as of a while ago). His prior two sales yielded about $15.5 billion. That leaves about $10 billion, depending a little on whether he parked the $15.5 billion in something that gained/lost value over the last few months. No one knows what cash/liquidity he had on hand apart from those sales. So if he needed to come up with another $7-8 billion, he could either sell TSLA shares, or get a margin loan on those or his other holdings, or find other equity particpants, or sell other stuff. Bloomberg suspects some mix of all of those, including some amount of TSLA sales:


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