Tesla shares fell on the first day of trading after Chief Executive Elon Musk said he is ditching efforts to take the company private.
Tesla’s goal to become profitable.
In the company’s most recent earnings, it backed its prior forecast that called for profitable third and fourth quarters as Model 3 production picks up.
“From an operating plant standpoint, from onwards I really want to emphasize our goal is to be profitable and cash flow positive for every quarter going forward,” Musk said on the earnings conference call. He added that recessions, or force majeure events could derail the plan but the goal is to be achieving positive GAAP income and cash flow “every quarter from here on out.”
Tesla is now aiming for a 6,000 vehicle per week rate, which it hopes to achieve by the end of August. By year-end it hopes to increase production to a rate of 10,000 a week.