Tesla Is Hemorrhaging Cash And Could Run Dry Before The End Of 2018
Tesla is continuing to burn through cash at an astonishing rate. About $6500 a minute, according to an alarming new report from Bloomberg. So, go away and make a cup of tea right now, and - so long as you’ve left the teabag in for a decent brewing duration - Tesla will have lost at least $30,000 in that time.
Don’t just take our word for it - there’s a handy counter on the Bloomberg piece, complete with a brilliant Elon Musk flamethrower Gif, that shows roughly how much money Tesla has lost since you opened the page.
$6500 a minute figure is actually a little less than the publication previously reported - Tesla apparently got through cash at a rate of $8000 a minute in the 12 months prior to November 2017 - but the main takeaway here is that it’s now looking like the Californian firm could be out of cash before the year is out.
A big factor is Tesla’s employee count. Since 2010, Tesla’s workforce has surged from 899 to 40,000 people, but the company still isn’t bringing in much money. General Motors and Ford rake in about two and a half times the revenue of Tesla per employee. Model 3 production delays have proven particularly costly, at a time when Tesla is also investing heavily in its incoming Semi truck.
The company currently holds $854 million in customer deposits, which - Bloomberg notes - are effectively “interest-free loans.” It’s not enough though, and without raising additional external funding, Tesla is at a real risk of going bankrupt.
It’s looking like 2018 is going to be a make or break year for Musk and Tesla.
Growing up on a diet of World Rally Championship highlights and lengthy Gran Turismo 2 sessions, a life in cars was as good as inevitable for Matt.
Comments
Anyone notice that its april 1st when this was tweeted?
Laughs in FA20F
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Schadenfreude in the comments below will not change our EV future whether you like it or not. Tesla may go down(or not), but big players are picking up and converting their IC lineup to full EV in 4-5 years. Your laughs in V8 and screams in spooling will only be good for recordings you can listen to on your radio while you’re whizzing around the countryside in near silence. Meanwhie IC motors will rot away left and right, being phased out by government taxes on emissions. I’ll let myself out and let the 12 year olds brap away on their keyboards.
Not surprising. They refuse to meet deadlines. They dont listen to cutomers. ( The model s has a cheaper looking interior than the polo, and costs the same as an s-class. They refuse to change that, instead they just add more power)
Smokes in a JTD
Laughs in V6
Laughs in dise-cough cough cough*
I thought they had billions racked up in launches in their spacex program
Yes. Musk will fall…Tesla will crumble…the Model S…is still everywhere. Guess there’s more to be done.
On a serious note, perhaps focusing on one thing and one thing only will help. I mean, Tesla can introduce concepts but shouldn’t invest into building them if they’re losing a used 330ci every minute. Maybe focusing all resources into the Model 3 for the time being will help.
Or it could kill the company for good. That 854 mil is going to dissapear like oil in a poorly maintained rotary engine at this rate.