Musk says Tesla will be self-funded, shunning Wall Street

The most eye-popping moment in Tesla’s earnings call with analysts Wednesday was not when Chief Executive Elon Musk apologized to the analysts he dissed on a previous call in May. It was not the fact that Tesla posted a $717-million loss for the quarter, or cut down on its cash burn.

The real surprise came when Musk and his chief financial officer, Deepak Ahuja, indicated the company won’t ever need to raise capital from another sale of stock, and can fund its growth mainly through internally generated cash and proceeds from Chinese debt.

“We will not be raising equity at any point,” Musk said. “At least that’s — I have no expectation of doing so, do not plan to do so.”

Ahuja added: “We’re executing on an operating plan that keeps us sufficiently self-funded, despite our [capital expenditure] needs and our debt maturing, and still keep a very healthy balance on our balance sheet.”

Read the entire article at LAtimes.com