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Tesla CEO Elon Musk said in an early morning tweet that the electric car maker will be profitable and cash flow positive this year.
The tweet was in reply to The Economist, which shared a story saying Tesla will need to raise $2.5 billion by the end of the year.
The Economist used to be boring, but smart with a wicked dry wit. Now it’s just boring (sigh). Tesla will be profitable & cash flow+ in Q3 & Q4, so obv no need to raise money.
— Elon Musk (@elonmusk) April 13, 2018
The guidance is in line with a February statement from the company that said “as we ramp production of both Model 3 and our energy products while keeping tight control of operating expenses, our quarterly operating income should turn sustainably positive at some point in 2018.”
Musk’s tweet offers specific timing of the company’s profitability and continued to deflect predictions the company will run out of cash.
In a release last week of production and delivery numbers, the company also predicted positive cash flow in Q3. “Tesla continues to target a production rate of approximately 5,000 units per week in about three months, laying the groundwork for Q3 to have the long-sought ideal combination of high volume, good gross margin and strong positive operating cash flow,” the release said. “As a result, Tesla does not require an equity or debt raise this year, apart from standard credit lines.”