Elon Musk, founder and CEO of Tesla, sent an e-mail to the company's employees, urging employees to save costs and “as much as possible to deliver each vehicle†so that the company had sufficient cash flow in the third quarter.
Musk stated that this was the last chance to show that the company’s financial situation had improved before he started financing. The third quarter is critical for Tesla as the company will try to acquire SolarCity, a solar panel maker, and prepare for the production of the low-priced Model 3 model next year.
In an email he learned from Bloomberg, Musk stated that if the news headline is no longer "Tezira is losing money again" but "Tesla exceeds expectations to achieve profitability", it will be very helpful to convince potential investors to go smoothly. Realize financing.
A Tesla spokesperson has confirmed the authenticity of this email.
The e-mail said that Tesla will complete the third quarter’s performance and deliver as much as possible for each car. At the same time, Tesla also asked to reduce costs in non-critical areas, at least in the next 4.5 weeks.
Tesla delivered 50,568 cars in 2015 and has already delivered about 80,000 cars this year. Tesla failed to complete its sales targets for the first two quarters, and has not given an expectation of sales targets for the third quarter, but Tesla said that it will deliver 50,000 cars in the second half of this year.
Musk wrote in the email: "I think it is very necessary to write to you directly to let you know the importance of this quarter. The third quarter will be to show investors that Tesla can achieve positive results before the full production of Model 3. Cash flow and the last chance to make a profit."
At the same time, Tesla is preparing equipment for the Model 3 by replacing equipment at its Fremont, California facility. In the absence of subsidies, the price of the Model 3 is expected to be $35,000. Musk also said that the company needed to raise more funds in the fourth quarter to complete the production of Model 3 models and to build the Gigafactory, a battery plant near Reno in Nevada.
Earlier this month, Tesla announced a cash balance of nearly $3.25 billion at the end of the second quarter, but repaid $678 million in revolving credit in July and plans to redeem $422 million in convertible notes. Tesla also posted operating losses for 14 consecutive quarters, and the cash flow since early 2014 has also been negative.
According to data from Bloomberg, Tesla “burned†$2.2 billion in 2015 and “burned†$611 million in the first half of this year. On the basis of the adjustment, the company suffered a loss of US$889 million last year and lost US$568 million in the first half of this year.
Musk said: "Wall Street always said that Tesla is a loss-making company. If we show our strength, let these bears be beaten. It would be great."
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