Tesla spikes after Musk says it will be profitable this year (TSLA)

Darnell Taylor
April 13, 2018

"Tesla will be profitable & cash flow+ in Q3 & Q4, so obv no need to raise money", Musk wrote.

Over the past few months, investors have been keeping an incredibly close eye on Tesla's ability to ramp up Model 3 production.

"As a reality check, Tesla is worth twice as much as Ford [estimate of the enterprise value of both companies], yet Ford made six million cars past year at a $7.6 billion profit, while Tesla made 100,000 cars at a $2 billion loss", Vilas Capital Management head John Thompson told Market Watch in March, adding that Tesla is months away from collapse.

Tesla's Autopilot is a semi-autonomous mode in which the auto controls its own steering and speed.

Ultimately, the most important issue facing Tesla today is production of the Model 3.

Tesla is appealing the ruling and the case remains open.

What's particularly worrisome to professional investors - but little mentioned by the mainstream media - is Mr. Musk's reaction to these crises.

Tesla, Inc designs, develops, manufactures, and sells electric vehicles, and energy generation and storage systems in the United States, China, Norway, and internationally.

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As the company has increased its rate of Model 3 production, it has engaged in a public disagreement with the National Transportation Safety Board, which has been investigating a fatal Model X crash involving the company's Autopilot semi-autonomous-driving system.

The war of words on Thursday between the Silicon Valley automaker run by billionaire Elon Musk and the NTSB stood in stark contrast to efforts this week by Uber Technologies Inc Chief Executive Dara Khosrowshahi and Facebook Inc chief Mark Zuckerberg to defuse conflicts with regulators.

A representative said Tesla didn't have further comments on the matter beyond Musk's remarks.

For stock like Tesla Motors Inc (NASDAQ:TSLA), the bears were bolstered in March, when shares of TSLA sank 22 percent, their worst month since December 2010.

SpaceX has authorized a new Series I round for 3 million shares in a new round that will be worth up to $507 million, according to a certificate of incorporation document filed in Delaware.

Among 28 analysts covering General Electric Company (NYSE:GE), 8 have Buy rating, 6 Sell and 14 Hold.

Basic budget analysis would seem to be the impetus behind this pervasive doom and gloom. And according to one former Tesla manager quoted by the author, Amir Efrati, "If you didn't know anything else about the company" aside from its recent financials, "you'd be, like, 'This company will go out of business'".

At the moment, Tesla has plenty of other battles to fight. But this time it feels different. Analysts, even those once bullish on Tesla's future, now openly joke about whether Tesla "will be around" for the next step in the auto industry's electric revolution.

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