Tesla losing RM33,600 every minute amid Model 3 woes

TESLA CEO Elon Musk said last week that Tesla is designing a new sports car that could go from zero to 60 mph ( 96 kph) in 1.9 seconds. Not bad, but here’s a speed number that investors might want to focus on instead:

Over the past 12 months, the electric- car maker has been burning money at a clip of about US$ 8,000 ( RM33,600) a minute, Bloomberg data show. At this pace, the company is on track to exhaust its current cash pile by

Whether they can last another 10 months or a year, he needs money, and quickly.

next August.

To be fair, few Tesla watchers expect the cash burn to continue at quite such a breakneck pace, and the company itself says it’s ramping up output of its all-important Model 3, which will bring money in the door. But still, its need for fresh cash came into high relief last week when Musk unveiled his latest plan to raise funds. He’s asking customers to pay him upfront to order vehicles that may not be delivered for years.

The Founders Series Roadster will cost buyers a US$ 250,000 ( RM1.05 million) down payment even though it’s not coming for more than two years.

Right now, Tesla is blowing through more than US$ 1 billion a quarter thanks to massive investment in making the Model 3, a US$ 35,000 ( RM147,000) car that’s looking less likely to generate a return anytime soon.

“Whether they can last another 10 months or a year, he needs money, and quickly,” said Kevin Tynan, senior analyst with Bloomberg Intelligence, who estimates Tesla will be required to raise at least US$ 2 billion in fresh capital by mid2018. — Bloomberg

Kevin Tynan, senior analyst with Bloomberg Intelligence