This smile cost $769K
You know how most businesses like to brag four times a year about how they make more than they spend? Well, in the world of Elon Musk, that kind of behavior is for total suckers living in the past.
Elon's car company, Tesla (not his space rocket company, which we'll get to later) burned through $557,854 million in free cash flow during its first quarter of 2015. That's objectively a lot of money to spend over three months, especially when Tesla seems to have about $1.5 billion in cash on hand.
Taking a step back, let's pretend you showed an analyst this kind of quarterly spending. Basically a still-young company burning through a relative ton of its own money in just one single quarter. This analyst might, without any other info, set his desk on fire and jump out a window just to get away from the bad mojo vibrating form that balance sheet.
But this is Elon Musk we're talking about, and he spent his money on gorgeous new super-batteries that you mount on the wall in your house to power your car, and construction of a desert lair from which he's going to create all the things we'll use in the future.
So, instead of reading stories about drunken sailor-type spending, Elon is seeing stories like this gem from Quartz that literally refers to Elon's Tesla spending spree as "a thing of beauty."
Elon Musk’s pursuit of these goals is laudable and it is precisely for this reason that he is hailed as the greatest entrepreneur since Steve Jobs. There’s something missing in the logic of criticizing most companies for hoarding their cash, and then turning around to criticize Tesla for investing its cash. Especially when, in the long run, Tesla’s investments are geared toward bettering society.
Yeah, Elon and his flip mode squad at Tesla are changing the world and you cannot put a price on that, even at $558 million.
As for the man himself, Elon was tweeting during the Tesla earnings call on Wednesday. But instead of defending his Tesla spending, homeboy tweeted this:
While everyone else was poring over the results of his electric car company, Elon was tweeting about the space rockets he's building over at his other company SpaceX.
So, once again, that's wassup with Elon Musk.
How are you doing?