Elon Musk said he was through asking Wall Street for money

So what did Musk tell investors last week after Tesla reported yet another quarter of disappointing earnings? His cash-strapped, electric-car company just might need to ask Wall Street for more money. It’s a striking turnabout for Tesla’s chief executive officer, who’s never been one to back down from his critics. Musk noted additional capital makes sense in light of his ambitious new plan to develop a fleet of autonomous robotaxis (not to mention forays into insurance, chip-making, and even “sentient” leaf blowers). But in some ways, it’s a tacit admission that for all the brash talk and easy confidence Musk has exuded about Tesla’s future, he still hasn’t figured out how to profitably mass-produce its cars.

In response to a question about the need to secure more funding, Musk acknowledged on last week’s earnings call that “there is merit to the idea of raising capital at this point.” That came after Tesla reported a record decline in deliveries, which combined with Tesla’s biggest-ever debt payment, depleted its cash reserve to a three-year low of $2.2 billion.

Yet two days before the earnings announcement, Musk himself dialed back Tesla’s positive cash-flow goal. He now expects the company to be cash-flow neutral while it builds up a fleet of self-driving vehicles that will make their way into the robotaxi service as soon as next year.

In the past, debt and equity investors alike have been enthusiastic buyers of whatever Tesla was selling — despite its spotty earnings record. In the company’s 16-year history, it’s only turned a profit in four quarters on an adjusted net income basis.

The stock has taken a beating this year, falling almost 30 percent as the broader market rose to records. At $238.69 apiece, Tesla’s shares are trading close to the lowest levels since January 2017.