By on May 4, 2018

 

Tesla Motors is 15 years old and it is still not profitable. Hyperbolic stock values have encouraged investors to keep showering Elon Musk and his crew with billions of dollars to keep the EV company afloat and develop new products, but now the Bloomberg news agency says that Tesla’s cash burn is severe enough to make the company insolvent this year if they don’t raise new capital, something made more difficult by a recent 24% decline in that stock’s value.

Reporters Dana Hull and Hannah Recht did a deep dive into Teslas finances, both where their money has come from and where it’s been going. They came up with some interesting data. The company is going through cash at the rate of about $6,500 a minute, a bit more than $9 million a day. Free cash flow has been in the red for over a year. That’s how much money a firm generates after subtracting capital expenses. (Read More…)

Recent Comments

  • sgeffe: I just looked at VW’s Web site because I wanted to figure out what the bloated, whale-like thing with slit...
  • Dave M.: RAM is a huge money maker. Don’t see that going away.
  • FreedMike: Lovely car. Kind of surprised to find rust spots on it after a bare-metal restoration, though.
  • slavuta: Art, don’t throw away the context and the meaning. You might eat your neighbor first. You never know.
  • Inside Looking Out: “America’s best days are still ahead of us.” Nobody mentioned America so far. But...

New Car Research

Get a Free Dealer Quote

Who We Are

  • Adam Tonge
  • Bozi Tatarevic
  • Corey Lewis
  • Mark Baruth
  • Ronnie Schreiber