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Elon Musk says Tesla will be profitable in Q3 and Q4


Tesla is one of the more interesting companies for Wall Street that had an interesting couple of months this year — and it seems even tweets from Elon Musk, who said that the company will be profitable in the back half of the year, may be enough to swing its stock. The Tesla and SpaceX founder sent a tweet very early this morning that the company would be profitable and cash-flow positive in the third and fourth quarter this year. Tesla is known for setting ambitious targets and forecasts, especially as it looks to ramp up Model 3 production to around 2,500 vehicles per week. Musk said he took direct control of Model 3 production earlier this month in a note to employees, also sent out at around 3 a.m. pacific time. Teslas shares were up slightly, gaining around 2% in trading today. The Economist used to be boring, but smart with a wicked dry wit. Now its just boring (sigh). Tesla will be profitable & cash flow+ in Q3 & Q4, so obv no need to raise money. Tesla saw a small bump in its stock throughout the day. While it could be for a variety of reasons, Musks data point may have offered a small amount of clarity (and optimism) around whether the company will be able to eventually turn a profit. The tweet was fired off as a response to a story by The Economist that said the company may have to raise additional capital at some point, according to banking firm Jeffries. (It was also quite snarky.) On Teslas last call to discuss the companys quarterly results with Wall Street analysts, Musk said that the company would begin generating positive quarterly operating income on a sustained basis, and said he was cautiously optimistic that the company would be GAAP profitable. Musk said the company wanted to hit a production target of 5,000 Model 3 vehicles per week at some point in 2018, though did not give a specific time frame. The tweet, while fired off as a response to a story by The Economist, appears to offer another small data point as to when it might happen. Earlier this month, Tesla fell back behind Ford in terms of its market cap as some pressure has hit the stock. Tesla has had to address a fatal crash involving its autopilot, in addition to a voluntary recall of 123,000 Model S vehicles. There is some skepticism around whether Tesla will hit its production targets from Wall Street (making cars is hard, it seems).

Elon Musk says ‘humans are underrated,’ calls Tesla’s ‘excessive automation’ a ‘mistake’


In a rare mea culpa for the mercurial billionaire, Tesla CEO Elon Musk acknowledged that the company has been too reliant on robots for production. Yes, excessive automation at Tesla was a mistake. To be precise, my mistake. Humans are underrated. Excessive automation at Tesla was a mistake, Musk wrote, responding to a Wall Street Journal reporters tweet. Humans are underrated. He also talked about this with CBS News Gayle King, adding we had this crazy, complex network of conveyor belts ….And it was not working, so we got rid of that whole thing. Tesla has faced mounting public pressure amid a production slowdown for its Model 3, its lower-priced car. The company recently revealed that it missed its target to produce 2,500 cars a week, disappointing investors. The uncertainty has resulted in a volatile stock. A month ago shares were trading at $340 and then slid to $252. Things have started to recover now that Musk says the company will be profitable and cash flow positive in the third quarter. This was also revealed in a tweet that Musk wrote to The Economist on Friday. The Economist used to be boring, but smart with a wicked dry wit. Now its just boring (sigh). Tesla will be profitable & cash flow+ in Q3 & Q4, so obv no need to raise money. Theres no need to raise money, he added. Shares closed Friday at $300.34. The company has a market cap of $50.7 billion. By comparison, Ford Motors has a market cap of $45 billion.