Tesla Seen Needing to Recharge Coffers to Make Model 3 Go
- Musk’s just kidding about bankruptcy but cash drain is no joke
- Analysts see need for capital raise as company says it’s set
The Cult of Elon Musk Amid Tone-Deaf Tweets
This article is for subscribers only.
Now that Tesla Inc. investors know how many Model 3s the carmaker built in the first quarter, they’re focusing on a new question: how Elon Musk’s going to finance the next batch.
Tesla says it won’t need to raise more equity or debt this year, apart from using its standard credit lines, because it expects to assemble cars faster. The company built 2,020 Model 3 sedans in the past seven days and said its production rate should “climb rapidly” this quarter, “laying the groundwork” for strong positive operating cash flow in the third quarter.