They massively cut cap ex spending to the point that net of depreciation it’s basically zero. This means that without a capital raise they don’t have the money

They massively cut cap ex spending to the point that net of depreciation it’s basically zero. This means that without a capital raise they don’t have the money to launch model Y, roadster, semi, pickup, or any other product they’ve announced. Elon Musk on the conference call sounded open to raising money for the first time in years, and for good reason. Their cash balance is beyond alarming and their growth has painfully and obviously stalled. Demand for model s and x was way down in Q1, as anyone who was paying attention could have told you, and contrary to what Tesla says Q2 so far looks like more of the same. Don’t forget that just 2 months ago Musk was guiding for a small loss or possibly, with luck, a tiny profit. Instead they had a loss 4 times worse than analysts estimates, which were already cut massively. A loss so big it basically wiped out the last 2 profitable quarters. In Q4 last year Musk said he thought they could be profitable in all quarters going forward, obviously Tesla isn’t there yet.