Tesla Tries to Throw 'Pie in the Face of Naysayers'

The electric car maker reported a surprising profit after eight quarters, largely due to selling zero emission vehicle credits. Analyst Kevin Tina discusses the implications, suggesting the results may not be sustainable and hinting at a potential capital raise. The company moved many units and was briefly cash flow positive, but future cash flow issues are likely. Concerns about production and demand, especially for the Model S, are raised, with the Model 3 not expected for another year.

What was the primary reason for the electric car maker's unexpected profit?

• New government subsidies

• Reduction in production costs

• Selling zero emission vehicle credits

• Increased sales of Model S

Why might the company be considering a capital raise?

• To increase marketing efforts

• To expand into new markets

• To cover upcoming capital expenditures

• To invest in new technology

What financial challenge is highlighted in the second section?

• Decreasing stock prices

• Rising material costs

• Cash flow issues

• High employee turnover

What concern is raised about the Model S in the final section?

• Regulatory challenges

• Increased competition

• Declining demand

• Supply chain disruptions

What is a potential issue for the company in the next four quarters?

• Lack of new models

• Excessive production costs

• Over-reliance on government credits

• High employee turnover