Elon Musk admits Tesla was on the verge of death
Musk said the company was within weeks of running out of cash.
Over the last few months there's been no shortage of reports suggesting Tesla was on the verge of financial insolvency. Well, as it turns out, those weren't just rumors.
In an interview with Axios that aired on HBO this weekend, Tesla CEO Elon Musk admitted that during the difficult ramp up of Model 3 production, Tesla came within days of running out of money.
"Tesla really faced a severe threat of death due to the Model 3 production ramp," Musk said. "Essentially, the company was bleeding money like crazy, and if we didn't solve these problems in a very short period of time, we would die. And it was extremely difficult to solve them."
Musk added that Tesla "came within single-digit” weeks of running its cash reserves dry.
At least for now, it appears as though Tesla is on solid financial footing. The company has successfully ramped up production of the Model 3 sedan, and it posted a profit during the third-quarter of 2018.