Right Now Tesla Is Haemorrhaging $8000 Every Minute
Tesla’s incredible rate of spending equates to $8000 for every minute of the last 12 months, according to data from Bloomberg.
The company has spent some $4.2 billion in that time as it developed the Model 3, the Roadster and the electric semi truck. Of course, it has also pulled some money back in through sales of what cars it has been able to build, but the losses are currently pretty huge.
In a letter to shareholders dated 1 November, Tesla insists that it has enough money to ramp-up production and reach its target output of 5000 Model 3s every week by the end of March. After that, it says, money should be flowing in nicely. Deposits for Roadsters and semi trucks will help.
Estimating that Elon Musk will need to raise at least a further $2 billion by the middle of next year, Kevin Tynan, a senior analyst with Bloomberg Intelligence, said:
“Whether they can last another 10 months or a year, he needs money, and quickly.”
At the current rate, the brand is torching cash at a rate of $480,000 per hour, which is frightening. Bloomberg says that very few ‘Tesla watchers’ expect the spending to carry on like that, though, and investors seem to be as confident as ever.
Source: Bloomberg
Comments
There’ll be a limit to how deep they can get. Eventually, they’ll go so deep that bankruptcy will be the only option.
But if they bankrupt they will be unstopable.
Look at Lamborghini, it was a complete sh!thole, it went bankrupt, Audi bought them, now they are #1 supercar manufacturer.
Same will apply to Tesla…
Tesla is one of the only companies I know which can trick investors into investing in it for no reason. Although on a downhill slide, the stock just shows you can make anybody buy your stock by wowing them with stupid gimmicks (gullwing doors). It seems like everybody ignored the numbers in their case (ressemblance to early 2000s tech company?). Their cars have cool tech (although the rest of the industry is catching up) but why pay premium price for a product that feels less than premium. TL;DR, do not hold on to your Tesla stocks long term.
Elon Musk is a very very rich and clever man, i am sure he knows what he is doing…
Inb4 Tesla is bankrupt…
Not scared at all,
They finished the development of everything, all they have to do now is sell the cars to get the money back.
It is in no way that simple.
Sure, they’ve made some prototypes but you need cash to set up dealer training, service staff training, production line set-up, production line testing, line worker training, type approval in various markets around the world, press events, press cars, advertisement, distribution and transport services, after-sales care, financial products and services, helplines and warranty centres, parts suppliers and logistics, parts quality assurance and handling and storage solutions.
They need BILLIONS to pull that off. I admire your optimism but you need to be realistic.
They should’ve fixed production issues and then develop a semi and a roadster. With the lost profits from people who vouched for a tesla model 3 whom’st have bought different vehicles. No wonder they are so deep in that if they don’t iron out the issues first they will collapse financially and got into chapter 11 bankruptcy and either dissolve or have to completely restructure
Dont worry. The cancerous tesla fanboys will don anything for tesla to get them even more money.
Why is everybody complaining on Tesla fanboys. I personally have never seen one…
In other words, they lose $1333 in the time it takes for a Model S P100D to do a quarter mile. It’ll take Tesla a long time to start making money, if they get that far.
Their loss has higher acceleration than their cars! 😂
EVERYBODY UPVOTE HIM!
XD
woohooo!!! to hell with electric cars
I secretly hope they go bankrupt.
Having read a lot on Musk, its easy to see why investors place so much faith on him, the man has been in a deeper hellhole than this back in 2008 with the original roadster as well as the original falcon rocket, however, he has displayed the knack of making it back which is what the investors are vouching on him
Fact of the matter is that Tesla will be able to recover in the same way they recouped losses with the S and the X.
I wouldn’t be so sure. If something happened once that doesn’t mean it will happen again