So, turns out Telsa like spending money as fast as they do making it! A report by Bloomberg suggests that Tesla, if they keep going at the rate that they are, may run out of money by the end of the year! Elon Musk’s electronic car baby may run out of cash and the electronic car revolution finished!
The company fell short of it’s own production targets for the Model 3 Sedan once again. Futhermore another person died in a crash involving it’s assisted driving feature. So it’s not been a great week for Musk or Tesla. Musk himself has entered into a public dispute with safety regulators. Tesla had previously been a high marketed stocked company. This was boosted by a downgrade from credit analysts, yet it has dropped 26% from it’s highest in September. Ouch. Allegedly no one has raised cash and spent it the way that Elon Musk has. While no one has also made a bankruptcy joke on Twitter.
The company is so young and there is a genuine risk, without any additional funding or financing that the company will go bust. Which will be a shame for a 15 year old company that’s hailed as the company to usher in a new form of personal transportation. According to data compiled by Bloomberg the tech company goes through $7,430 each minute. Free cash flow (this is cash that a company generates after capital expenditures – has been negative for 6 quarters – consecutively. This, has sky rocketed to more than a billion dollars when Tesla reported it’s earnings on May 2nd.
There’s some rough times ahead and we hope that Tesla and Musk can pull through, it’s such a cool company and the future of tech needs Tesla!
This article was thanks to a Bloomberg report where you can see a much more detailed report of how much money Tesla are ploughing through! It even has a counter that predicts how much has been spent since you started reading!
Keep up to date with everything How To Kill An Hour by signing up to our newsletter! Simply click here to get a dose of How To Kill An Hour in your inbox every week!