Electric vehicle (EV) pioneer (NASDAQ: TSLA) has been sacrificing profits this year by lowering prices, but the automaker is still producing plenty of cash. Tesla generated over $800 million of free cash flow in the third quarter. That's down significantly from last year, a trade-off that Tesla has been willing to make as it focuses on increasing volumes.

Tesla has been piling up cash on its balance sheet, a smart move given the current economic environment. Downturns for automakers can be brutal. Tesla had $26 billion in cash and just $4.4 billion in debt and finance leases at the end of Q3, giving the company a large cash cushion in case demand tumbles.

Tesla isn't the only automaker focused on fortifying its balance sheet. General Motors (NYSE: GM) has enjoyed a highly profitable few years marked by high demand and rising prices. Even as GM invests heavily in scaling its EV operations and its autonomous vehicle technology, the company has been churning out cash. As GM copes with a United Auto Workers strike, uncertain demand for its EVs, and a potential downturn, that cash will come in handy.

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Source Fool.com