Tesla Motors CEO on production rate, positive cash flow and DOE loan
A new blog post by Tesla Motors CEO Elon Musk shows a bit of attitude, reacting to the way the company’s stock and reputation took a bit of a hit last week (despite its supercharger announcement) after downsizing its 2012 production and resulting revenue estimates. Tesla also announced a follow on stock offering, which had some pessimists pouring themselves some long tall glasses of haterade.
Elon’s response? Well, he makes it clear that things are going pretty well, actually. Tesla, he says, is doing another funding round as a means of risk reduction, not out of necessity. Wham! Further, the automaker will likely be cash flow positive by the end of next month. Bop! Also, despite being a few weeks behind in production – due, in part, to flood damage at a supplier – the company has built 500 vehicle bodies, finished 359 Model S sedans and placed over 250 in the hands of customers. Pow!
He also goes on to state that Tesla has never suggested postponing its DOE loan repayment. Yes, it did renegotiate some terms that weren’t part of the original arrangement, but the federal agency is still confident in the company’s ability to pay up and is, in fact, bullish about Tesla’s future. Finally, he reiterates once again that the company fully intends to pay back the DOE “at the earliest opportunity.” There has even been talk of early repayment. You can read Elon’s words here.