I know, last month I talked about cars in Fast cars and Hollywood stars. I love powerful, stylish cars but most of all, I like them ‘green’. And the good news is, these cars sell well and Tesla will even be profitable by December, says Tesla CEO Elon Musk.
Charlie White posted on Mashable:
Is electric car maker Tesla a “loser” company, as presidential candidate Mitt Romney charged in Wednesday’s debate? In a blog post written a few hours before the debate, Tesla CEO Elon Musk said no — the company will in fact be profitable by the end of next month.
Musk felt journalists and analysts were reading too much into the company’s forecast last week of slower manufacturing of its Model S sedan (pictured above), and says he thought the press also misinterpreted the reason why the company wanted to raise an additional $150 million.
While the financial world interpreted the additional round of financing as a weakness, Musk claims it was done for risk reduction, and doesn’t foresee the company needing to use it. He says he wanted to have that additional money in the bank in case the company needed to halt production because of a supply chain disruption — which could be caused by a natural disaster such as a flood, fire, hurricane or earthquake.
“Tesla is actually on the verge of becoming cash flow positive and will not have to spend any of the money raised,” Musk wrote in the blog post, “at least until we embark upon a major new vehicle program.”
Let’s hope Tesla is now out of money troubles!