Musk Throws ‘Pie’ at Naysayers as Tesla Posts Rare Profit
- Earnings surprise aided by cost-cutting, zero-emission credits
- Reprieve on cash burn will be short as Model 3, SolarCity loom
Is Tesla's Profit a Pie in the Face of Wall Street?
Tesla Motors Inc. posted an unexpected profit and said it expects to get through the rest of the year without raising cash, easing one concern for investors as it expands production of electric cars and prepares to acquire money-losing SolarCity Corp.
The profit, Tesla’s first in eight quarters, boosted its shares as much as 5.7 percent Thursday after they had slumped 16 percent this year. It also provided welcome vindication to Chief Executive Officer Elon Musk, who in an August e-mail obtained by Bloomberg pushed workers to cut costs, deliver every car possible and drive the results into positive territory. “It would be awesome to throw a pie in the face of all the naysayers on Wall Street,” Musk wrote.