In a shocking twist of events, CEO of Tesla Motors Elon Musk has recently said that the business was close to running out of cash previously. This follows numerous manufacturing problems surrounding its Model 3 sedan, CarAdvice reports.
After interviewed by Axios news programme, Musk explained “the business was bleeding money like crazy, and when we didn’t resolve these problems in a very short time period, we’d die. ” He said the firm was “single-digit months ” from running out of capital.
Earlier in April, The Economist demonstrated that Tesla wasn’t simply burning through money excessively, but required more finance to further development. It also had to support a US$1.2 billion (RM5.03 billion) loan because of ancient 2019.
After Tesla established the Model 3 in mid-2017, it moved through a year of continual difficulties in reaching the targeted production limit of 5,000 Model 3s weekly. There were manufacturing bottlenecks, as well as 63,000 people cancelled their orders at June 2018. In a week, Tesla announced a cost-cutting move by trimming its workforce with 9 percent (4,000 jobs).
But, Tesla recently struck a record high after it sold 17,800 units of the Model 3 in August 2018, prior to being superseded by September earnings, which climbed to a whopping 22,250 units, based on figures by Good Car Bad Car. Reports estimate that Tesla will sell 17,750 units of the Model 3 in October – the current year-to-date volume stands in 78,667 units, and it will be more than double the quantity of F30 BMW 3 Series (34,731 units) sold.
Last month, Tesla disclosed that it made a profit for its first time in two decades , with cash reserves up by USD$731 million (RM3.07 billion). Regardless of the positive outlook, the business is still riddled with adverse publicity. Elon Musk and Tesla were fined US$20 million each for retracting a statement securing private financing, which might take the firm private.
The jagged visionary has since abandoned his chairman post (triumphed by Robyn Denholm), but will probably continue to serve as CEO of both Tesla Motors. The business is currently under investigations by the FBI on its production targets.
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