Tesla Motors to be ‘Cashflow Positive’ Before December
Despite skepticism surrounding Tesla Motors, CEO Elon Musk expects Tesla to report positive cashflow by the end of November.
Doubt cropped up when Tesla failed to meet the planned 500-unit delivery mark by the start of the third quarter, but Musk blamed the slowdown on supply constraints. At the end of the second quarter, Tesla had manufactured 359 Model S vehicles, of which 250 have been delivered to customers.
Musk is also commented on the company’s Department of Energy (DOE) loan. “Tesla has never asked for or even hinted at postponing repayment of the loan…Tesla has always made its DOE payments on time,” Musk wrote in a blog post.
Reports that the DOE has been pushing Tesla to repay its loan sooner than originally planned might have cast a negative shadow over the company’s future.
“The DOE believes Tesla will be highly successful and accumulate a large amount of cash, but that we may then choose not to pay off the loan any sooner than is currently required,” Musk said.
In an effort to further emphasize that point, Tesla also issued an early payment today ahead of its March, 2013 deadline. But observing on-time payments is far from enough to affirm an automaker’s future. There needs to be a solid product backing the brand, which the Model S seemed to prove during our tests.
In our test, the Model S received much praise, another solid reason to believe that Tesla will in fact be successful, thanks to a solid product.