Elon Musk Says Tesla Will Not Need Money in Q4

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By Douglas A. McIntyre Updated Published
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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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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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