Cars and Drivers
Elon Musk Says Tesla Will Not Need Money in Q4
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Despite the impression many analysts have that Tesla Motors Inc. (NASDAQ: TSLA) will need money to stay in business as it completes its merger with SolarCity Corp. (NASDAQ: SCTY) and ramps up production to deliver its Model 3, Elon Musk, the electric car company’s founder, says otherwise.
On Twitter, he said:
Would also like to correct expectations that Tesla/SolarCity will need to raise equity or corp debt in Q4. Won’t be necessary for either.
Musk must not only underwrite cash needs for Tesla. SolarCity also will need capital as Musk builds his huge Gigafactory, and the capital needs of Tesla will soar. Remember that the company’s goal is to deliver 500,000 automobiles by 2018.
Of course, all Musk is implying is he will need capital early next year.
Shares of Tesla have retreated more than 21% in the past six months and closed most recently at $196.61. The stock’s 52-week range is $141.05 to $269.34. Shares were up 2.8% in early indications Monday to $202.01.
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