Musk: Tesla was going bankrupt in about a month

Tesla CEO Elon Musk tweeted Tuesday that the company was still working on how to mass-produce the Model 3 electric sedan when it went bankrupt in about a month. During the last Twitter discussion about Tesla’s fundraising history, one fan asked: “How far is Tesla from bankruptcy when the Model 3 goes into mass production?” “

Musk: Tesla was going bankrupt in about a month

Musk replied: “The closest thing is to about a month. For a long time, from mid-2017 to mid-2019, increasing Model 3 production has brought extreme stress and pain. (It was) a hell of a production and logistics. “

When it comes to putting a new electric car into mass production, Musk often refers to “production and logistics hell.” But until then, he and Tesla have never disclosed how long the company is still a long way from a possible bankruptcy. Tesla’s Model 3 produced fewer than 63,000 vehicles in the first quarter of 2019, when Musk to promote the company’s ambitions in self-driving cars and raise billions of dollars in “Autonomy Day” events and conference calls with institutional investors.

Musk and other Tesla executives said in quarterly financial filings and investor conference calls at the time that the company would be able to use existing cash flow to fund its business needs and raise funds only to prevent a recession or weak global auto demand.

Tesla made a profit for the fifth consecutive quarter in the third quarter, thanks in large part to regulatory credit sales.

Now, Tesla is no longer releasing production figures for the Model 3 alone. But since the U.S. mass-produced Model 3 suffered a “production and logistics hell”, the company has opened a new “superst plant” in Shanghai, with the goal of producing 150,000 Model 3s a year and then increasing annual production, including Model Y and Model 3, to at least 250,000 vehicles a year.

In addition, Musk on Twitter on Tuesday defended his unprecedented CEO compensation plan. Under Musk’s 2018 agreement with Tesla to remain CEO, he won’t take wages from the company, but if the company reaches a certain milestone, he will have the right to buy the company’s stock at a locked price in the future. One Twitter fan commented, while Musk replied: “It’s true, but I didn’t expect the share price to go up so much so fast.” “

Musk also mentioned that he took the money for space exploration technology company SpaceX, another of his own companies. “The reason for the stock options is that it needs the money to help pay for getting humans to Mars in 10 to 20 years, ” he says. “

Mr Musk has already received several options worth more than $11bn from the pay package as the new coronavirus pandemic rages. At the same time, Tesla has slashed wages, put workers on temporary leave, and allowed workers at its Fremont, Calif., plant to return to work when state and local officials say it’s not safe to return to work.