Home / Business / Tesla says no need for capital raise as Model 3 output rises

Tesla says no need for capital raise as Model 3 output rises

(Reuters) (Tesla) – Tesla, Inc. Tesla Inc expects it to pay more than that.

FILE PHOTO: A Tesla Model 3 sedan, its first car aimed at the mass market, is displayed during its launch in Hawthorne, California. March 31, 2016. REUTERS / Joe White / File Photo

The company, in the past week by speculation about its finances and a car crash in California, said it would produce nearly the same number of the model 3 in the next week and would see you climb through the second quarter.

"Tesla continues to produce good volume and volume of approximately 5,000 units per week over three months, laying the groundwork for Q3. it said.

"As a result, Tesla does not require equity or debt raise this year, apart from standard credit lines."

The production numbers, short of Tesla's own target of 2,500 per week for the end of March, are far above the 793 Model 3s built in the final week of last year.

FILE PHOTO: A Tesla dealership is seen in West Drayton, just outside London, Britain, February 7, 2018. REUTERS / Hannah McKay / File Photo

Quickly ramping up Model 3 production is critical for the Silicon Valley electric vehicle maker, whose profitability depends on the cheaper sedan. Tesla says it has about 500,000 customers for the car.

Shares of the Palo Alto, California-based company, which have fallen around a fifth in value in the past week, jumped 6.4 percent in premarket trade in New York.

Auto industry blogs – citing an unmodified memo – had reported on Monday that production of the model 3 had passed the 2,000 per week production rate.

Analysts from brokerage Evercore said it was a run-rate of 2,000 per week, while short of the 2,500 target, which was better than most on Wall Street.

"We were able to double the weekly Model 3 production rate during the quarter by rapidly allocating production and supply chain bottlenecks, including several short factory shutdowns to upgrade equipment," Tesla said in the filing.