Elon Musk clarifies financing round, says Tesla to be cash flow positive by December 2012
Last week, overshadowing the Supercharger network announcement, some SEC filings by Tesla Motors created what Elon Musk today called "misconceptions" when "journalists gained the wrong impression" of what the filings meant. Those articles had the tone of the sky is falling because Tesla Motors is running short of money and the Dept. of Energy (DOE) is calling on Tesla to repay the loans early. In a blog post today, Elon Musk made his best attempt to clarify the situation, to reiterate that Tesla Motors is about to become cash flow positive, next month, and to explain the circumstance around the repayment terms for the DOE loan.
The blog post began by explaining that the company was in a quiet period required by SEC rules, because of a round of fundraising. That quiet period prevented Tesla's management from speaking about the misconceptions floating in the press. Further, because prospectuses are required to spell out all known risk factors, even the highly unlikely ones, Musk says they "described a relatively pessimistic scenario for Tesla, which was incorrectly interpreted by some to be what we thought was the most likely scenario."