It’s sometimes hard to make sense of what’s going on with Tesla. Is the company on the verge of going bankrupt, or poised to set new records for deliveries? Well, according to Tesla CEO Elon Musk, the answer to both questions could be “yes.”
A few days ago, an internal email from Musk to Tesla employees claimed that the company was in danger of running out of cash in just 10 months time. As a result, Musk said that the company was going to implement “hardcore” cost-cutting measures, an initiative Musk claims is the only way for the company “to become financially sustainable and succeed in our goal of helping make the world environmentally sustainable.”
Consumer Reports blasts Tesla's 'Navigate on Autopilot' feature
Apple offered to buy Tesla back in 2013 for more than it's worth today
Elon Musk: Tesla needs to cut costs or it will run out of money in 10 months
In the following days, a pair of research reports from analysts laid out rather dire bear-case scenarios for Tesla, with Morgan Stanley noting that Tesla, in a worst case scenario, might only be worth $10 a share. As a point of reference, Tesla was trading at $376 less than six months ago.
All that said, demand for Tesla vehicles appears to be growing and on the verge of setting new records. According to a new internal email from Musk (via CNBC), the Tesla CEO relayed that the company was on pace to set a new record for deliveries for the June quarter.
“As of yesterday,” Musk said, “we had over 50,000 net new orders for this quarter. Based on current trends, we have a good chance of exceeding the record 90,700 deliveries of Q4 last year and making this the highest deliveries/sales quarter in Tesla history!”
Of course, Musk’s statement was tempered with the qualification that Model 3 production needs to remain steady at 1,000 units per day, at a minimum.
“We’ve averaged about 900/day this week,” Musk added, “so we’re only about 10% away from 7,000/week. If we rally hard, we can do it.”
The larger takeaway from all of this Tesla hoopla is that demand, contrary to some analyst opinions, does not appear to be a huge issue for the company. Still, the company is burning through cash at an alarming rate and, as Musk notes, needs to pick up production to meet swelling demand.
BGR Top Deals:
- Apple Watch Series 4 models are back on sale on Amazon at all-time low prices
- Today’s best deals: $22 true wireless earbuds, crazy SanDisk microSD sale, Fire TV Stick and Roku deals, more
Trending Right Now:
- Netflix is releasing 56 new original movies and shows in June – here’s the full list
- This is the first time Apple’s iPhone 11 model numbers have been spotted in public
- This is what the Galaxy Note 10 might look like