Tesla’s Lowest Cash in Over a Year May Only Be Temporary

Ramp-up of Model 3 production should help reverse the trend

Tesla Inc. may have the least cash on hand in more than a year, but Chief Executive Officer Elon Musk isn’t worried. He says the situation should quickly reverse as its Model 3 ramps up, giving the electric-car maker better payment terms from suppliers. “The Nirvana is that we can make the car and get paid for the car before we have to pay our suppliers, which then the faster you grow, the faster your cash position grows,” Musk said Wednesday on a conference call. “Obviously, that’s like the promised land right there.”

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