Looking at some potential new stocks to buy I come across Tesla. Two issues jump out at me when taking a birds eye view.
First, I look at their cash flow.
Not bad. I look a little deeper to see where all this cash flow is coming from.
Answer: Net cash flow from financing…
Than I take a look at the free cash flow (FCF).
The stock price continues to go up. Investors do not seem to be concerned.
Second, I don’t like their story. Maybe I should say, I don’t understand their story. I don’t understand why people waste money on new cars. Buy an indestructible Japanese used car. They run for 250K miles.