Elon Musk: Tesla will be profitable in the second half of this year

18 April 2018

Meanwhile, the company continues to record losses

In a fresh interview with Reuters Elon Musk (Elon Musk) promised to make Tesla profitable in the third quarter of 2018. This statement, he parried the popular media the idea that by summer the us will have to enter the market of borrowed capital, since their money is not simply does not remain.

Meanwhile problems Tesla continue to grow like a snowball. Moreover, the company is constantly working "in the red", so for the last month she was faced with at least two serious blows. First, time after time, the manufacturer does not fulfill its own promises to increase the production of inexpensive electric car Model 3. Second, the recent fatal incident with the driver of the Tesla Model X was questioned by the high standards of safety.

Against this background, the first of April Musk even joke for bankruptcy the actual company. Although the sense of humor the billionaire will not give up, but the real financial performance of Tesla is really depressing. For example, previously, experts Moody's downgraded the credit rating of the Tesla and the S&P Global Ratings has revised the rating of debt obligations of the company Ilona Mask to, that is "garbage level". Because of this, the company's shares by the beginning of April fell 25 %. And though to the current time position of the wagering requirements have been met, the securities are still traded in the area of yearly lows.

How Musk is going to make a "Tesla" profitable? On the positive forecast, the American billionaire said in response to a new article from the Economist that predicted the need for borrowing in the amount of $2.5- $ 3 billion by the end of 2018.

However, the consensus Thomson Reuters does not agree with the promises of Mr. Mask: negative cash flow will occur in 2019. Only one of the 19 analysts made a first appearance in net profit in the third quarter of 2018.

Hope Elon musk is still associated with the acceleration of the production Model 3. However, working on Wall Street stockbroker Jefferies, who shared with The Economist predictions about Tesla, believes that companies will have to turn to external borrowing until it's time, she will not be able to produce 10 000 Model 3 a week. A lot or a little? At the end of the first quarter, Tesla once again has not coped with promises to accelerate the release of up to 2 500 cars. Thus experts are increasingly in doubt, and the next target, according to which the production will reach 5 000 Model 3 a week to the end of the second quarter.

Not encouraging and the news from the field: in the beginning of this week, Musk announced the next stop of the conveyor, which brings together the Tesla Model 3. Now the head of the company blames too many robots: "Over-automation in Tesla was a mistake. To be precise, my mistake. People were undervalued".

The next stop was the plant in Fremont is an attempt to get rid of "bottlenecks" — stages of the production Tesla Model 3, which stop the entire pipeline and cause significant delays. Work did not affect the Assembly of the Model S and Model X.