Can Tesla do a Share Buyback? Probably Not

Reported cash is inflated; working capital needs are high & 27% of cash parked in CDs

Feb 27, 2023

∙ Paid

Can Tesla do a share buyback? They can announce that they will do one, but may not be able to follow through given their high working-capital needs (see Figure-1). The cash balance Tesla shows at quarter-end doesn’t reflect what Tesla actually has on hand intra-quarter, which doesn’t seem like a sufficient amount.

Figure-1: Tesla’s Working Capital Largel…

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