Tesla Model S launch

Elon Musk clarifies financing round, says Tesla to be cash flow positive by December 2012

Last week misconceptions floated in the press stemming from SEC financial filings, and this week Elon Musk takes to the blog to explain the truth, and predict the company will be cash flow positive next month.

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."


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Thanks for clearing that up because as usual, media representations were high. He had just "bashed" Detroit for having lost the EV game and then the following week, seemed to be asking for another round of funds. That makes it clearer now. Tesla did show up 6th place in the Pike Research top EV maker that encompasses a lengthy criteria, which I wrote about yesterday.