Tesla Motors is making a big bet in its electric cars, betting that the carmaker will make enough money by the end of the decade to offset losses from an aging fleet and its acquisition of a competitor.
The company has a lot to prove to investors about its ability to sell enough vehicles to meet demand in a way that is sustainable and profitable, especially as its stock has fallen sharply in the last year.
The stakes are huge for Tesla and for the broader auto industry.
The automaker, which has more than 3,000 employees worldwide, needs to grow its revenue and profit margins by a significant margin to survive.
Tesla is betting that it will sell enough Model S, Model X and Model 3 electric cars to offset the loss of its core electric car business, but it will also have to prove that it can make enough Model 3 cars to make up for losses.
The first two Model 3s sold in July sold out quickly, and the company is looking for a third Model 3 to be ready in time for the 2020 launch of its new Model 3 sedan.
If the first two cars are not ready by the time the second is, Tesla will have to make the Model 3 in order to meet the demand.
And that means that if the company loses the Model X production capacity and loses sales, the company will have no margin to invest in new vehicles and it will have difficulty making any profit.
That’s a tough bet to make, especially in light of Tesla’s current $70 billion in cash, its investments in electric cars and the $1.2 trillion it’s already made on other things, including the purchase of SolarCity, its solar energy-generation business.
Tesla’s business is currently worth around $50 billion.
The company says that its Model 3 production ramp has been “exceedingly successful,” so the company doesn’t have to worry about having any losses from the Model S and Model X.
But Tesla says it will make a profit if it can keep the Model3 production ramp up to the level it is now.
Tesla says that the Model E, which was supposed to go into production in 2019, will be ready by 2025.
But the company said that it may need more time to build the electric car, because it has to make several other Model 3 upgrades, including a bigger battery and a faster electric motor.
Tesla has already built prototypes of its upcoming Model X SUV and Model S sedan.
The Model 3 has a range of about 215 miles on a single charge, and Tesla has said that its engineers are working on developing an electric motor that can deliver a range that is “greater than what is possible with a gasoline engine.”
But if the Model 4 sedan is not ready in 2020, Tesla’s Model 3 and Model E production capacity will be depleted.
The biggest threat to Tesla’s financial future is the threat of an electric car crash.
A crash in a Model 3 would mean that Tesla has to either shut down its production or sell off some of its electric vehicles.
Tesla also has a history of producing large quantities of Model 3 batteries and electric motors and other parts.
The financial and economic risks of a crash in the Model Y or Model X could be greater than the risks of losing customers or shareholders if the first Tesla car crashes.
Tesla expects to lose around $2 billion in 2019 and 2020 from the first Model 3 crash, while losses could rise to $20 billion if the second Model 3 car crashes, according to analysts at Wedbush Securities.
If the Model 2 and Model Y are not profitable by the second half of 2020, the losses could climb to $10 billion, according in a note to clients.
If Tesla can’t make the next Model 3, the Model 5 or Model 6, the car maker could have to buy back its shares to help it make up the lost revenue from the two Model S models.
The market for Tesla stock is volatile, and investors are nervous about how quickly the company can recover from the losses that it is already experiencing.
But it also seems to have been a tough year for Tesla.
It has been struggling to make money, and it is underperforming on several metrics, including revenue and profitability.
Tesla is in the midst of a bankruptcy reorganization, and analysts at Sanford C. Bernstein expect that Tesla will need to buy a lot of shares before it can be profitable again.