Tesla’s early adopters have been enjoying a lifetime of free charging at the company’s network of Supercharger stations, but that won’t be the case for owners of the forthcoming mass-market Model 3. In today’s annual shareholder meeting, CEO Elon Musk explained free charging for life won’t be included with the new model, but will be available as an optional package.
When Tesla talked about its earnings in early May, one big question came up: just how will the company afford to make hundreds of thousands ofModel 3s (over 373,000, at last count)? By raising a ton of investment money, that’s how. Tesla has announced that it’s selling a total of $2 billion in stock, about $600 million of it from Elon Musk himself, to pay for its expansion plans. It had to move up its goal of 500,000 electric vehicles per year to 2018 in response to Model 3 deposits, and that means having a “good buffer of cash” (as Musk said during the earnings call) to keep things humming.
The best music often comes from the notes left unplayed, and so it was with the Tesla Motors Q2 earnings call with financial analysts this week. While we heard upbeat news about the Model X delivery schedule – and downbeat news about the company’s vehicle output forecasts and profit margins – perhaps the most interesting hook came from a question left unanswered.