(excerpt)

Tesla can point to one big number as a mark of its success: the stock rose 7.5% in after-hours trading Wednesday following the company’s second-quarter earnings release. But Tesla revealed other important numbers in its earnings letter and conference call -- including the long-hidden number of reservations for the lower-priced Model 3 that it just launched.

The company’s headline results clearly impressed investors: Tesla’s earnings and sales surpassed analysts’ expectations and the company reassured investors that its Model 3 production was on target. ...

... Tesla will probably need to raise cash soon. This isn’t a huge surprise, given that the company is essentially building a new kind of factory from scratch for its Model 3. The company is likely to spend $2 billion on capital expenses in the second half of the year, and it ended the quarter with just over $3 billion in cash.

Musk says the company will probably raise debt instead of issue new stock -- a somewhat surprising decision given the company’s high-flying stock price.

One investor thinks Musk should raise the cash sooner rather than later. “All the press is positive now on the Model 3,” said David Kudla, CEO of Mainstay Capital Management. “What’s to come is the self-proclaimed ‘manufacturing hell.’”...

 

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