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Tesla Burning Cash at $480,000 Per Hour
Over the past 12 months Tesla Inc. has been burning through cash at a rate of $8,000 per minute ($480,000 per hour), according to Bloomberg News.
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Over the past 12 months Tesla Inc. has been burning through cash at a rate of $8,000 per minute ($480,000 per hour), according to Bloomberg News.
The spending binge has been needed mainly to launch production of the Tesla Model 3 electric sedan. The $35,000 car is considered crucial to the company’s financial viability. The company also is ramping up production of EV batteries at its “megafactory” in Nevada.
Last week CEO Elon Musk unveiled two more company projects: an electric highway truck and an ultra-high-performance sports car. Those programs are chewing up more cash but won’t begin generating revenue for at least two years.
In the meantime, Tesla is drawing down its existing credit facilities at a record clip. Bloomberg says the company will need to raise at least $2 billion in new capital over the next six months. The carmaker is betting that output of the Model 3 will pick up by March sufficiently to generate “significant” cash flow next year.
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