Another day, another Tesla Inc. (TSLA) promise that won't be kept.
The electric carmaker said last week that it will not require an equity or debt raise this year. But given its track record, this is likely another empty promise. Tesla has fallen short time and again, habitually missing production and launch goals since its inception. And aside from Tesla's history of shortcomings, the financial picture is bleak.
Tesla is dumb to think it can get away without raising capital this year. Margins are under pressure and a debt crunch is imminent. It's time for chief executive Elon Musk to step back and recognize that if Tesla can't deliver on basic financials, it will have to implement a backup plan to stay in the good graces of investors.