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.