Better production and a more humble Elon Musk makes Tesla look like a real car company
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Better production and a more humble Elon Musk makes Tesla look like a real car company

At the beginning of July, Elon Musk sent an email to Tesla employees to congratulate them on hitting the long-awaited Model 3 target: 5,000 cars per week. In it, he said that Tesla had become “a real car company” – this week. When the company posted second quarter results, that fact was on display. And, what’s more, Mr. Musk started behaving like a real CEO.

Tesla’s share price jumps on back of the results: +7% in 5 days

graph 0308 tesla

SOURCE: Yahoo Finance

Tesla spent less cash than Wall Street expected, and its revenue was slightly higher than expected. Automotive revenue increased 47% year on year, and accelerated by 23% from the first quarter on the year. Tesla is looking to produce as many as 55,000 Model 3’s over the next quarter, doubling its production capacity, According to Musk, who took an opportunity to apologise for insults he directed at analysts last quarter, the company will then start paying off its debts. He said:

“I don’t mean refi-ing them, I mean paying them off. There’s a convert that’s coming due soon -- a couple hundred million, $900 million, something like that -- we expect to pay that off with internally generated cash flow, and still have a healthy cash balance.”

Gene Munster, a managing partner at venture capital firm Loup Ventures, said: “The pieces are now falling into place for a sustainable Tesla story. Before, it took mental gymnastics to get there. His actions on the call were a powerful statement that he’s capable of channeling his energy for the good of the company, and it removes a central concern of Tesla supporters.”


Dominion holds Tesla in its Global Trends Luxury Fund.

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