Tesla Motors will become profitable, starting from the third quarter of this year and therefore will not require additional funding from its investors according to the company’s CEO Elon Musk.
Tesla has already sought to play down widespread speculations that it would need to return to capital markets this year in order to raise more money, Reuters reports.
The electric car maker has been losing production targets consistently and is also currently fighting bad publicity over a fatal crash that involves a Tesla using its Autopilot system.
Tesla has said that it would have positive cash flow from the third quarter and Musk repeated the same in a tweeted response to a story from The Economist which said that the Silicon Valley car maker will require $2.5 to $3 billion this year in additional funding.
“The Economist used to be boring, but smart with a wicked dry wit. Now it’s just boring (sigh). Tesla will be profitable & cash flow+ in Q3 & Q4, so obv no need to raise money”, Must wrote on Twitter.
The company’s shares, which had already gained nearly 10 percent since announcing the production numbers of the Model 3 on April 3, were up 1.8 percent soon after Musk’s tweet.
The Economist used to be boring, but smart with a wicked dry wit. Now it’s just boring (sigh). Tesla will be profitable & cash flow+ in Q3 & Q4, so obv no need to raise money.
— Elon Musk (@elonmusk) April 13, 2018