Elon Musk Hits Back At The Economist, Says Tesla Will Be Profitable And Cash Flow Positive In Q3 And Q4

Elon Musk Hits Back At The Economist, Says Tesla Will Be Profitable And Cash Flow Positive In Q3 And Q4

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by: Elizabeth Balboa, Benzinga Staff Writer

 

Tesla Inc TSLA 2.39% CEO Elon Musk fired back at The Economist late Thursday in response to a report that the yet-unprofitable tech company is “looking more perilous.”

Musk asserted Tesla will be profitable and cash-flow positive by the third quarter of this year and will not need to raise capital to achieve its objectives.

 

 

By The Economist’s assessment, bolstered by Jefferies’ forecast for a $2.5 billion to $3 billion raise this year, Tesla is heading for a “cash crunch” amid a “financial squeeze that could eventually put Tesla over the edge.”

 

Why It’s Important

Musk’s reiterated confidence pressed the stock up 2.6 percent Friday morning, advancing a recovery from a series of poorly received reports.

Tesla saw a $100 turn in its shares from late March through early April as wary investors took stock of crash investigations, production target misses, a recall and their implications for Tesla’s balance sheet.

Musk’s offhand jokes about bankruptcy did little to correct the narrative, but Thursday’s more sober defense seemed to improve market confidence.

 

What’s Next

Some analysts say Tesla’s financial capabilities hinge on its Model 3 achievements, so most will be watching for second-quarter production figures. Management guided for a 5,000-vehicle-per-week run rate by the end of the period.

Tesla's stock was trading around $301 in Friday's pre-market session.

 

Image credit: Heisenberg Media, Flickr

 

© 2018 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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3 responses to “Elon Musk Hits Back At The Economist, Says Tesla Will Be Profitable And Cash Flow Positive In Q3 And Q4”

  1. Harry Seth says:

    Musk is savage! He is not willing to let down his companies whether it is Tesla or SpaceX. He is surely bringing money, and one day he will be yet another king – although he is already.

    In the meantime, Apple is introducing iOS 12 beta download for iPhone and iPad users. You can read more about the update from here.

  2. Ignatios Singoh says:

    very interesting thing what you are saying. The reality is thtat Musk is a savage as our friend Harry Seth says.
    Apple is introducing ios12 and you can read more about apps on this kind of mobile devices in this spanish site about aptoide-> spanish aptoide website

    french aptoide website

  3. Quang says:

    Musk is my idol! I am very interested in the way He builds the business with strong mind, great target…His business is not only for money but also good for mankind.
    Quang from Cheap domain, email hosting service

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