Musk: Tesla is only one month away from bankruptcy

Original title: Musk: Tesla was about to go bankrupt in about a month

Tesla CEO Elon Musk posted a Twitter message on Tuesday that Tesla was about to go bankrupt in about a month in recent years, when the company was still studying how to mass-produce Model 3 electric cars.

In a discussion on Tesla’s fundraising history on Twitter, a fan asked: “How far is Tesla from bankruptcy when Model 3 goes into mass production?”

Musk replied: "The closest (of bankruptcy) was only about a month. For a long period of time-from mid-2017 to mid-2019-increasing Model 3 production has brought extreme pressure and pain. (It was) the hell of production and logistics."

When talking about putting a new electric car into mass production, Musk often referred to "production and logistics hell." But before that, he and Tesla had never disclosed how long the company was before a possible bankruptcy. At the beginning of 2019, the quarterly production of Tesla Model 3 was less than 63,000. At that time, Musk promoted the company's ambitions in the field of autonomous driving during the "Autonomy Day" event and conference calls with institutional investors, and raised To the billions of dollars in funding.

When Musk and other Tesla executives submitted quarterly financial filings and held an investor conference call at the time, they said that the company would be able to use its existing cash flow to fund its business needs, and that it would only raise funds to prevent economic recession or Global automotive demand is weak.

In the third quarter, Tesla achieved profitability for the fifth consecutive quarter, thanks in large part to the sales of regulatory credit (regulatory credit).

Now, Tesla no longer releases Model 3 production data separately. But since the mass production of Model 3 in the United States encountered "production and logistics hell", the company has opened a new "super factory" in Shanghai. The goal is to produce 150,000 Model 3s per year, which will then include Model Y and Model 3. The annual output of the company has increased to at least 250,000 vehicles.

In addition, Musk also defended his unprecedented CEO compensation plan on Twitter on Tuesday. According to Musk’s 2018 agreement with Tesla to continue to serve as the company’s CEO, he will not receive salaries from the company, but if the company’s business reaches a certain milestone, then he can buy the company at a locked price in the future Stock rights. A Twitter fan commented on this, and Musk replied: "This is true, but I did not expect the stock price to rise so much so quickly."

Musk also mentioned that he took the money for his other company, SpaceX, a space exploration technology company. He said: "The reason (I take these) stock options is that the money is needed to help pay for the cost of getting humans to Mars in 10 to 20 years."

As the new crown virus pandemic is raging, Musk has obtained several options from the above compensation plan, with a total value of more than 11 billion US dollars. At the same time, Tesla slashed employee wages, gave workers temporary vacations, and allowed workers at the Fremont, California plant to return to work when the state and local officials deemed it unsafe to resume work.