Tesla autos may not burn fossil fuels directly, but the company does a
remarkable job of devouring cash;
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.
If he can find buyers of that stock.
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.
Then again, there's always
Big Brother;
Musk has steered Tesla out of tight corners
before. In September 2012, the company faced a cash crunch, but raised
money by selling shares and renegotiating the terms of a federal loan.
Our bold above.
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