Elon Musk expressed confidence about Tesla Inc. achieving goals for the Model 3 sedan and with its financial position, predicting that manufacturing will become a strength for the electric-car maker.
Musk, 46, acknowledged that the claim was a bit counterintuitive -- the chief executive officer has spoken since last year about “production hell” plaguing its first attempt to mass-manufacture a car. Still, he said it’s likely that Tesla will produce 5,000 Model 3 sedans a week by the end of the month, and that the company will be cash-flow positive in the third and fourth quarters of the year.
Long term, manufacturing will become one of Tesla’s biggest strengths, and it’s going to be a “quite dramatic” advantage, Musk said at the company’s annual meeting in Mountain View, California. The shares rose as much as 1.7 percent in late trading.
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Tesla will build a gigafactory in Shanghai and more details may be announced as soon as next month, according to Musk. That plant, plus one in Europe that may be announced by the end of this year, will make both batteries and cars, he said.
Musk reiterated his expectation that Tesla won’t need to raise additional capital.
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