Financials

Operating Cash Flow is a great metric to measure the success of Tesla's core business because it filters out a lot of noise that can make it difficult to measure how well Tesla is running their business. In OCF, we filter out:

• Non-recurring revenues such as emissions credits, which are typically used to fund long term capital investments

• Long term capital investments, such as the cost to build new giga-factories or to research and develop future products/services. These costs are better accounted for over the long term life of the investment.

• Stock based compensation, which is a non-cash expense and varies depending on the company's current market cap

This gives the purest view into how much cash that company is generating each quarter.

Tesla has consistently generated positive cash flow since Q2'20.