Tesla Projects End to Cash-Burning Era as Model 3 Gains Traction

Tesla forecast that it’ll generate cash in the second half of this year as production of Elon Musk’s critical Model 3 gains traction, according to Bloomberg.

The electric-car maker is on track to make 5,000 of the sedans a week in about two months, according to a letter to shareholders. Tesla reported quarterly revenue that beat analyst estimates and said it produced the Model 3 at a rate of more than 2,000 units for three straight weeks in April.

Musk first unveiled the Model 3 sedan more than two years ago but has pushed back manufacturing targets several times. The slower rate of output has limited the amount of money coming in from customers taking delivery and tested Tesla’s balance sheet. But prospective customers have showed patience, with deposits rising to $984.8 million as of the end of March.

Tesla had $2.67 billion in cash on hand at the end of the first quarter, down from the $3.37 billion at the end of last year. The company reported a loss of $3.35 a share on revenue of $3.41 billion, both better than analysts’ average estimates. The shares gained 1.1 percent.