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.
There are many chapters of bankruptcy and, as critics so rightly pointed out, Tesla has them *all*, including Chapter 14 and a half (the worst one).
— Elon Musk (@elonmusk) April 1, 2018
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
At least they made a flying car……….
Well, looks like Tesla’s downfall will be the same as many smaller (but similar) companies before it. Too much ambition, too little production.
o o f
Can’t wait for the Roadster! Oh it comes in 2020 and there is no Tesla any more.
“profitable by 2017”
Left the page open for about 10-15 minutes…
Lol, who saw this coming haha, I literally called it last year lol
In my eyes, their biggest mistake was to invest in stuff that have some selected public, like the semi for example, there is probably millions of companies around the world that are using diesel-powered semis that work just fine and they are not willing to spend 200k in a new truck when the previous ones still have some useful life in them because is just simply not profitable, or a Tesla Roadster 2.0 which was something for only a selected group of people, in my honest opinion they should have focused all the efforts and money into the model 3 and then build something that I (at least) would very thankful for, a small or mid-sized commercial van for inside-city deliveries that had a competitive prize and would make companies think about it when buying delivery vehicles for their bussines and replace the old, diesel ones that run around the city street leaving a trace of cancer-like smell (this is coming from someone who’s personal vehicle is a 04 Citroen Berlingo, wich don’t get my wrong I absolutely adore it is my first car after all), I wish Tesla recovers from this and rethink their priorities.
If you read till here I wish you a good day and sorry if my English is not the best.
William
Well, I for one will not miss Teslas