Musk says Tesla won’t increase capital to focus on reducing battery costs

30 (Xinhua) — Tesla CEO Elon Musk said at a earnings launch after Wednesday’s quarter-final earnings announcement that Tesla has no plans to raise capital and will focus on reducing battery costs and may hold a “battery day” event in April to brief investors on the progress made in the area.

Musk says Tesla won't increase capital to focus on reducing battery costs

At the earnings launch, retail and institutional investors both asked Musk if it was the perfect time to raise more capital. They suggest that Tesla could now easily raise capital at favorable interest rates, or pay down debt or speed up the company’s progress on new products and factories.

Mr Musk said Tesla had no intention of raising more money at the moment, and probably never would.

“We are not artificially limiting our progress, even though we are still generating positive cash flow,” he said. In view of this, there is no point in raising funds, as we expect to generate positive cash flow despite such high growth rates. “

Gene Munster, Tesla’s chief executive, asked Musk how much it might cost to make its electric pickup, The Cybertruck, and how much he thought his company would make.

Musk replied: “We don’t comment on these detailed numbers. In three to four years, we will need far more money than we can make. Instead, he said, Tesla will focus on increasing battery capacity and reducing battery production costs.

Musk: “If you don’t make improvements in batteries, you’re going to end up going from one part to another, and you don’t actually make more electric cars.” That’s one of the reasons why we didn’t speed up production of the Tesla semi-trailer because it does use a lot of batteries. Unless we have enough batteries, accelerating the production of semi-trailers will mean reducing production of model 3s or other models. “

Musk also said Tesla plans to hold a “battery day” for investors, most likely in April.