Tesla slows cash burn as Musk's Model 3 production picks up

Tesla Inc. burned through less cash than analysts expected last quarter and stood firm with Chief Executive Officer Elon Musk’s projection that profit is around the corner after years of losses.

Photo: Tesla

Free cash flow was negative USD 739 million for the three months ended in June, Musk wrote in a letter to shareholders Wednesday. Analysts were projecting Tesla would go through about USD 900 million during the period, after burning more than USD 1 billion in three of the previous four quarters. Its shares surged after the close of regular trading.

Musk, 47, has been adamant that Tesla won’t need to raise more capital this year, an outlook Wall Street has doubted after the company repeatedly pushed back manufacturing targets for the Model 3. The sedan that was central to the company’s mission since its founding in 2003 -- to bring electric vehicles to the masses -- has picked up the pace in recent months, with the carmaker expecting to build as many as 55,000 units this quarter.

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