Elon Musk: Tesla to be Cash Flow Positive Next Month, Model S Production Increased
October 5, 2012 8:11 AM
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Elon Musk with the Model S
In a blog post, Musk set out to clarify that Tesla is not in a bad position despite the automaker's reduced 2012 revenue forecast
Tesla Motors had a bit of discouraging news last month regarding
2012 revenue reductions as a result of Model S delays
, but CEO Elon Musk fired back with some better news: Tesla will become cash flow positive at the end of next month.
Last month, Tesla's regulatory filing indicated that the automaker had cut its 2012 revenue forecasts from $560 million-$600 million down to $$400 million-$440 million. It was noted that Model S production delays of about four to five weeks had caused the revenue reduction, as the Model S was expected to provide 90 percent of Tesla's revenue for the full-year 2012.
However, in a recent blog post, Musk set out to clarify that Tesla is not in a bad position. In fact, he said that his auto company will not only become cash flow positive at the end of next month, but
Model S production
has also been increased.
"Our production rate in the last week of September was roughly 100 vehicles, four times greater than our production in the first week of September as we overcame supply constraints," said Musk. "I am pleased to report that we completed production of 359 vehicles last quarter (delivering over 250 of those to customers) and have already made our 500th vehicle body.
"While we are indeed a few weeks later than we would like, this is not perhaps a terrible outcome for
a product as advanced as the Model S
, particularly given that Tesla is doing manufacturing of full vehicles for the first time with a new team and suppliers."
Musk added that SEC rules restricted the automaker from discussing this with the press sooner (because it doesn't want companies to promote stock), so he couldn't clarify the situation sooner when journalists began reporting the regulatory filing as a smudge on Tesla's record.
In addition, Tesla will be repaying its $465 million federal loan early ahead of the March 2013 due date.
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10/13/2012 5:48:05 AM
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