3 must-read Elon Musk quotes from Tesla's earnings call

3 must-read Elon Musk quotes from Tesla's earnings call

The WSJ reported recently that Tesla finished its latest quarter with $3 billion in cash, $2 billion of which it plans to spend in the second half of the year.

At the launch, Musk, however, warned that Tesla would face months of "manufacturing hell" as it increases production of the saloon.

The California automaker has its hands full launching the Model 3, a long anticipated compact electric vehicle that Tesla is expected to retail for around $35,000.

In addition to being the co-founder and CEO of electric auto company Tesla, Musk was co-founder of PayPal.

Tesla had issued four convertible bonds to date - the company now has US$3.3bn outstanding - but it has never before accessed the public unsecured bond market.

While Tesla previously stated the Model Y would sit on an all-new platform, the lure of sharing complex mechanical components has clearly become more attractive and founder Elon Musk has now confirmed the Model Y will share its backbone with the Model 3. "So - but what people should absolutely have zero concern about, zero, is that Tesla will achieve a 10,000-unit production week by the end of next year", Musk said. Such a feat could bring along with it unexpected detours and delays.

"Let me just say yum, yum", he said.

Fortunately, Musk has changed his tone about the vehicle.

The Model Y is particularly important, Musk explained, because the market for SUVs is now larger than the market for cars.

Vehicle electrical wiring is one of the most problematic issues of auto assembly, and wire harnesses themselves can be troublesome systems.

Although Tesla has made cost savings with the Model 3, Musk has stated before his ambition to "anti-sell" the vehicle and encourage buyers to opt for the Model S or X instead. In fact, this has turned out to be the opposite situation. According to the book, Musk offered her another job at the company (SpaceX), but she never returned to the office again. A Model S P100D reached 560 miles (900 km) but this was done under "hypermiling" (extremely efficient driving) conditions. Yet still, Tesla isn't finished, as it's readying another SUV - the Tesla Model Y.

Tesla's bond will price later this week after several days of meetings with credit investors, who will weigh factors including the absence of a borrowing history, its lack of profit and its high cash-burn rate against its growth potential and its attractiveness as an environmentally-friendly "green" issuer.

"Tesla, SpaceX, and the Quest for a Fantastic Future", the biography was written by Ashlee Vance, a business columnist.