Viewers of last night’s Presidential debate may have caught Mitt Romney bad-mouthing Tesla and Fisker during his remarks. Meanwhile, Tesla’s new prospectus shows that they’re hardly out of the woods yet, financially speaking.
Last night, Gov. Romney delivered this barb to President Obama
“You put $90 billion — like 50 years’ worth of breaks — into solar and wind, to Solyndra and Fisker and Tesla and Ener1,” said Romney. “I mean, I had a friend who said, you don’t just pick the winners and losers; you pick the losers.”
The remarks came right as Elon Musk and Tesla prepared another stock issue to raise so much needed cash. Tesla’s latest SEC filing declares that
Based upon our current financial forecast, we currently anticipate that if we do not raise the proceeds anticipated from this offering and do not otherwise adjust our operations accordingly or amend the DOE Loan Facility, we may not be compliant with the current ratio covenant for the quarterly period ending March 31, 2013. For the quarters ending September 30, 2013 and December 31, 2013, we currently anticipate that without taking advantage of additional revenue opportunities or making adjustments to our spending, we expect that we will need to seek an amendment from the DOE to modify the fixed charge coverage ratio covenant. Moreover, we currently anticipate that without raising capital in addition to this offering, we would need to seek an amendment from the DOE to modify the total liabilities to stockholder equity covenant for the quarter ending March 31, 2014 and the two subsequent quarters.
While Tesla will apparently become cash flow positive next month, the mainstream media has glossed over the fact that they are also in grave danger of being out of compliance with their DOE loans for as much as 18 months into the future. Unfortunately, it doesn’t matter how good the Model S is. If it don’t make dollars, it don’t make sense.