Elon Musk said in 2012 that Tesla would never need to raise money again. The billions that followed are a lesson for every new shareholder

“We may want to do so, but we are in a strong cash position, and we don’t need to,” Musk said.

Tesla has since exploded into the world’s most valuable automaker with a $1.4 trillion market cap. The blue-chip company is positioned to be an industry leader in self-driving cars, robotics and artificial intelligence with lessons for shareholders.

Lessons in self-funding

Since it was founded in 2003, Tesla has carried out 29 funding rounds that raised over $408 million. That’s not how Musk originally envisioned it.

In 2006, he laid out a four-part “master plan” that included building a high-priced electric car at the premium end of the market and channeling revenue from that into manufacturing an affordable vehicle with zero emissions.

“In keeping with a fast growing technology company, all free cash flow is plowed back into R&D to drive down the costs and bring the follow on products to market as fast as possible,” Musk wrote at the time.

Despite Musk’s attempts to keep external funding sources at bay, those were crucial in laying the groundwork for Tesla to become an electric vehicle (EV) market behemoth.

Most notably, Tesla relied on a $465 million low-interest loan from the Energy Department (DOE) in 2010 that helped the company manufacture the Model S luxury sedan in addition to financing the construction of a factory in California. The loan originated through the Advanced Technology Vehicle Manufacturing (ATVM) program set in motion under President George W. Bush.

Tesla paid off the federal loan nine years ahead of schedule in 2013 — with interest. Musk thanked Congress, the DOE and even the American taxpayer. “I hope we did you proud,” he said in a statement at the time.

Investment cash, though, has always been part of the picture at Tesla. Musk later said he was initially cautious about incorporating external funding due to the volatile landscape for startup auto companies.