Musk Reopens Door to Tesla Capital Raise After Big Cash SetbackMore
(Bloomberg) — Elon Musk’s declarations that Tesla Inc. was done losing money and needing to raise more cash turned out to be premature.
The chief executive officer is reopening the door to seeking capital for the maker of the electric Model 3 sedan after posting a bigger-than-expected loss for the first quarter. A record drop in deliveries, combined with the company’s largest-ever debt payment, depleted cash to the lowest level in three years.
Musk, 47, assured investors that higher deliveries and cost cuts will help Tesla post a narrower loss in the second quarter and return to profitability the following three months. But he also went a step further than his hint earlier this week that