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
They appear to be suffering from victim of their own successitis
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I’m a known Tesla hater by many Tesla fans here,homewer i will just lay my honest opinion in here with respect…
Today the electric car is decently viable option if you know the charge points, the range and advantages…Tesla had all of these issues covered since the beginning, homewer its downfall that I’m expecting to come soon doesn’t only come from the incomunication/Threats it had with its employees along the dangerous factory conditions (including exposure to high voltage),the rushed productions with missing stuff on cars along the factory defects that I experienced in my workshop 2-3 times already by badly built battery packs or cooling systems one of them ended with a badly fried front motor.
Enough on the details…Tesla wanted to make the electric car which i think is a great idea (in part) accessible to everyone and bring the future to everyone today but they started wrong starting with 100k cars that only people with high incomes could afford, if we look at the “competition” of the Tesla company (if it can be even called that) we see the slower ZOE, Leaf…the difference in price I talk about here is pretty obvious for anyone reading with attention,the market for a utilitarian vehicle is pretty big and wide for families that need a car to go A/B/C ,you don’t need to accelerate in 2 seconds to 60mph to get to your local market or take the kids to school, you don’t need 700hp to drive in a daily basis to work if 80hp can take you there the same way ,the cars Tesla built could have easily reached the 20k-30k mark since the early beginning and perhaps more people could have bought them and thus they could have moved onto a bigger league and go full savage as many car makers are going today .
that way this story could have been different.removing things like the iPad in the middle as center display and using low torque motors could have made the cars cheaper, perhaps with a low torque electric motor you can’t beat a GTR in a straight line ridiculing it as you watch a movie but you can take a family to places more efficiently and cheaper than a conventional car with less power as a fan of the impreza there’s a joke with evos that can be applied here with a slight variation
“Women aim for diamonds but men aim for the stars”
In this case they should have aimed at the diamonds on the ground to begin, you can’t reach the stars if you are still on the ground
But…that’s none of my business
I knew this would come in handy, lol.
Horuga,theSheppy its just…
When will people figure out that Electric cars do not help the environment and save the baby whales because they are still charged off the grid. These are just a fad.
They deserve it,for being big mouthed “experts” that can’t survive
Elon Musk is a great visionary, but this time, he has bitten off more than he can chew.
Perfect example:the interior of the new semi. Center seat and no bed/resting area. He obviously does not realize that truckers want to pay tolls easily and to be able to sleep in their truck.
(Also worth mentioning that the whole idea of the new semi being used for long haul revolves around the currently imaginary ‘megacharger’ network.)
The automotive industry is a very tough branch. The last really sucessful automotive startup in the USA was Ford, and that was in 1903. I would love to see Tesla become a true rival to the “big three”, but it’s a long way. If they don’t correct their production problems (both, quality issues and bottlenecks) as soon as possible, it doesn’t look well for them. Developing a lorry and a supercar while the production of the large-volume model still struggles is a very bold move. We’ll see if it pays off for them.
Now, I haven’t studied economics - and I very much doubt that any of the self-proclaimed experts in the comment section here has - but I doubt that we will still have Tesla as a car manufacturer (however, possibly as a supplier) in twenty years. Despite huge revenue growths, Tesla hasn’t been in the black since at least 2010.
If this keeps going on
This will pop-up sooner or later
Within a week of launch the Tesla Model 3 was the most sold car ever, without any use commercials. They are still at the forefront of technology, and they are moving into a market Renault-Nissan isn’t, trucks.