Report: Tesla’s Elon Musk says company is not in financial trouble, paying back U.S. loans

Tesla Motors CEO Elon Musk is speaking out against speculation that the electric-car maker is in financial trouble. Musk said that the company plans to make an advanced payment on federal loans used to produce the Model S electric sedan.

Last week, Tesla said that it has cut its full-year revenue forecast due to slower-than-expected rollout of the Model S. It also said that it was raising another $150 million. The California based company also said last week that it fully used its $465 million U.S. Department of Energy loan facility.

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In blog post Wednesday, Musk said misconceptions had raised from last week’s statements by the company and he wanted to correct the media’s ‘wrong impression’ that Tesla was in financial trouble.

“We described a relatively pessimistic scenario for Tesla, which was incorrectly interpreted by some to be what we thought was the most likely scenario,” he said. “We raised the funds (from the stock offering) simply for risk reduction.”

He said that Tesla was close to becoming cash-flow positive by the end of next month.

– By: Omar Rana

Source: AutoNews