$Tesla Motors(TSLA)$generated $621M free cash flow in 2Q (before $936M BTC proceeds) even with China volume at 60% of normal and with TSLA ramping up two “gigantic money furnaces.” For FY’22 TSLA still likely to generate ~$9B in FCF, and in FY’23 ~$20B FCF. With $18.9B cash, only $66M debt not tied to vehicles or solar, and annual run rate EBITDA of $15B, TSLA likely to be upgraded to an IG credit this quarter. The real question: What to do with all the excess cash flow over the next five years, which we est could total $170B?

The best use of free cash flow (highest IRR) remains building new gigafactories once Berlin/Austin are ramped up. After all internal projects there are only four external uses of cash:

- share buybacks (My preference)

- dividends

- M&A

- build up cash (or retire debt)?