After publishing its second quarter 2016 financial results last month, Tesla said that it plans to deliver about 50,000 vehicles during the second half the year to bring the total to 80,000 vehicles. The volume will generate a lot of cash flow for the company and now CEO Elon Musk says that it could be enough to be profitable during the third quarter, which will end by the end of the month.
Musk made the comment in a colorful company-wide memo dated August 29. Bloomberg got the email and shared a few quotes:
The simple reality of it is that we will be in a far better position to convince potential investors to bet on us if the headline is not ‘Tesla Loses Money Again,’ but rather ‘Tesla Defies All Expectations and Achieves Profitability. That would be amazing! […]
I thought it was important to write you a note directly to let you know how critical this quarter is. The third quarter will be our last chance to show investors that Tesla can be at least slightly positive cash flow and profitable before the Model 3 reaches full production. […]
We will need to raise additional cash in Q4 to complete the Model 3 vehicle and the Gigafactory. […]
It would be awesome to throw a pie in the face of all naysayers on Wall Street who keep insisting that Tesla will always be a money loser!
In the email, Musk urges employees to deliver as many vehicles as possible by the end of the quarter – September 30.
Tesla exited the second quarter at ~2,000 vehicles per week. If it manages to maintain that throughout the third quarter and that the number of vehicles in transit at the end of the second quarter is similar to that at end of the third quarter, the automaker could deliver as many as 26,000 vehicles.
It would beat its previous delivery record of 17,400 vehicles in Q4 2015.
Featured Image: Elon Musk, CEO of Tesla Motors, reacts to a reporter’s question following the electric automaker’s initial public offering on Nasdaq, Tuesday, June, 29, 2010 in New York. (AP Photo/Mark Lennihan)