By Steve Dellar  |  11-30-2017   News
Photo credit: Taina Sohlman | Dreamstime

Though it recently surprised with the launch of an electric Truck and a new sports car model, unless Tesla turns around its massive cash burn, the company could face bankruptcy by August of 2018.

This is not us saying it. The conclusion was drawn but the French financial newspaper Les Echos in collaboration with Bloomberg, who calculated on the basis of their current costs and income.

Over the past 12 months, the electric-car maker has been burning money at a rate of about $8,000 a minute (or $480,000 an hour).

To be fair, few Tesla watchers expect the cash burn to continue at quite such a pace as analysts agree that the all-important Model 3 will bring money in.

However, the need for upfront payment for a car that may not be delivered for years is not something we have seen before at GM or Ford.

Meanwhile, Musk also presented a new ‘Founders Series’ limited edition Roadster sports car, which is capped for production at 1,000 units. Buyers need to put down a hefty $250,000 payment even though it’s not coming for more than two years. For $50,000 you can reserve a regular Roadster.

Mr Kevin Tynan, senior financial analyst, does mention once again that Tesla needs money fast: “Whether they can last another 10 months or a year, he needs money, and quickly. Tesla will be required to raise at least $2 billion in fresh capital by mid-2018.

Meanwhile, Mr Dave Arnold, the company spokesman for Palo Alto-based Tesla, declined to elaborate on whether selling some of the company stock is in the pipeline, as more banks are starting to think that Musk will revert to this option as from next year.

Of course, selling equity would dilute existing shareholders, and Musk, at 20 percent, is the biggest.

Source:

https://www.hln.be/geld/economie/autobedrijven/tesla-jaagt-er-bijna-een-half-miljoen-euro-per-uur-door-aan-dit-tempo-wenkt-het-bankroet-in-augustus-volgend-jaar~a3719a16/

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Anonymous No. 13025 1512050870

They could go bankrupt before delivering my car? Shit !!!!

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