SAN FRANCISCO: Tesla said on Wednesday its mass-market Model 3 sedan was on track for volume production by September, encouraging investors who see the electric vehicle as the avenue to profitability for the young company.
But the carmaker's operations continued to burn through cash, and chief executive Elon Musk told analysts on a conference call that he may ask Wall Street for more.
"According to our financial plan, no capital needs to be raised for the Model 3 but we get very close to the edge," Musk told investors on a conference call. Tesla plans an additional US$2 billion to US$2.5 billion in capital expenses before the Model 3 launch and has US$3.4 billion cash on hand.
"We're considering a number of options but I think it probably makes sense to raise capital to reduce risk," Musk said.
Musk said chief financial officer Jason Wheeler, in his role for just over a year, would leave in April to work in public policy. He will be replaced by former Tesla CFO Deepak Ahuja, who was popular with investors.
Many investors and suppliers have predicted Model 3 volume production would be delayed until 2018, but Tesla said it would produce over 5,000 Model 3s per week "at some point in the fourth quarter", and 10,000 vehicles per week "at some point in 2018".
Musk reiterated that Tesla still planned to deliver 500,000 cars in 2018 and 1 million vehicles by 2020.
Tesla did not give its usual full-year delivery estimate, but said it expected to deliver 47,000 to 50,000 Model S and Model X vehicles combined in the first half of 2017.
The company did not give a Model 3 target for this year and declined to update a previous disclosure made last April that 373,000 advance reservations had been taken for the car.
"We're still in great shape," said Wheeler, when asked about early demand for the car.
The public might not see the final version of the Model 3 until as late as July, when limited production begins, Musk said.
