Tesla’s cash crunch, explained

Enlarge (credit: David Paul Morris / Bloomberg / Getty)
Tesla is 15 years old, but it’s still fundamentally a startup. And being a startup in the capital-intensive car business means raising billions of dollars to spend on manufacturing infrastructure. In recent months, as Tesla races toward volume production of its mass-market Model 3 sedan, some analysts have warned that Tesla could be months away from running out of cash.
The company burned through more than $1 billion in the first quarter of 2018, ending the quarter with less than $2.7 billion in the bank. Tesla likely has even less than that today—we’ll find out how much less when Tesla announces its second quarter financial results next week.
Adding to the pressure is Tesla’s massive debt. Tesla has more than $10 billion in total debt, and more than $1 billion of that could come due in the next eight months.
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Source: Car news one

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