Posted on 08/09/2015 5:41:34 PM PDT by nickcarraway
It's crunch time for Tesla Motors.
The Silicon Valley automaker is losing more than $4,000 on every Model S electric sedan it sells, using its reckoning of operating losses, and it burned $359 million in cash last quarter in a bull market for luxury vehicles. The company on Wednesday cut its production targets for this year and next. Chief Executive Elon Musk said he's considering options to raise more capital, and didn't rule out selling more stock.
Musk has taken investors on a thrill ride since taking Tesla public in 2010. Now he's given himself a deadline, promising that by the first quarter of 2016 Tesla will be making enough money to fund a jump from making one expensive, low volume car to mass producing multiple models, and expanding a venture to manufacture electric power storage systems.
Tesla's shares fell almost 9 percent on Thursday and slipped another 2 percent on Friday as investors and analysts weighed the risks of Musk's ambitious plans for expanding Tesla's auto and energy storage businesses. Tesla had just $1.15 billion on hand as of June 30, down from $2.67 billion a year earlier.
(Excerpt) Read more at metro.us ...
They’ll make it up on volume...
Is the new model going to be called Solyndra on Wheels???
I once worked for a company that NEVER made a profit. Worked off investor money for 11 years and sold for $6 Billion dollars.
never made a profit
Crony Capitalism
I wonder if this means they’ll be scaling back their phoney battery “gigafactory” to just a phony “megafactory”?
It does seem like people in the market for a Tesla could manage to shell out an extra 5K on the purchase....
who cares, it’s just taxpayer money
...
Really?
I appreciate your posts, especially when you know you’re going to be drowned out by the emotion driven knuckledraggers.
no, not really
Dear Telsa stockholders... SUCKERS!!! You should have bought stock in the old GM company you’d made more money!!!
...Tesla ping....
It’s more like 15-17k a car. Subsidies tale up 7k or more of it.
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