Tesla Says Model 3 on Track as Quarterly Loss Beats Estimates
People who lose money shorting Tesla are losing their shirts for the same reason as those who shorted Amazon: cash flow + growth matters more than profitability, PE ratios, or EPS. Tesla&#x27;s  car business is cash flow positive but the quarterly losses are due to infrastructure investments. This is how finance can be more subtle than meets the eye.<p>Tesla&#x27;s car business is very profitable:<p><i>Tesla also reported an automotive gross margin excluding SBC and ZEV credit (non-GAAP), of 22.2% in the quarter, up from 19.7% a year ago, but down from 25.0% in Q3...</i><p>huge growth:<p><i>Looking at the future, Tesla said it expects to deliver 47,000 to 50,000 Model S and Model X vehicles combined in the first half of 2017, representing vehicle delivery growth of 61% to 71% compared with the same period last year.</i><p>reinvesting operating profits into investments:<p><i>The company also expects to invest between $2 billion and $2.5 billion in capex ahead of the start of Model 3 production and continues &quot;to focus on capital efficiency while also investing in battery cell, pack and energy storage production at Gigafactory 1. It also forecast that both Model 3 and solar roof launches are on track for the second half of the year.</i><p>This company is firing (no pun intended) on all cylinders