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Tesla spend­ing spree

The com­pany that Elon Musk built to usher in the elec­tric-car fu­ture might not have enough cash to make it through the cal­en­dar year.

The firm has again fallen short of its pro­duc­tion tar­gets for the Model 3 sedan, an­other per­son has died in a crash in­volv­ing its as­sisted-driv­ing fea­ture and Musk has en­tered into a dis­pute with safety reg­u­la­tors. Tesla’s once high-fly­ing stock has dropped 24% from its Septem­ber peak.

No-one has raised or spent money as Musk has. Tesla burns through more than US$6,500 ev­ery minute, ac­cord­ing to data compiled by Bloomberg. It is go­ing through money so fast that, with­out more fi­nanc­ing, it could run out of cash this year.

Elon Musk has a higher tol­er­ance for risk than most. After Tesla’s $225m ini­tial pub­lic of­fer­ing in June 2010, many an­a­lysts be­lieve it will need to raise money again — and soon. UK rate hike un­likely

The worst UK eco­nomic growth re­port since 2012 may have put the fi­nal nail in the cof­fin for a Bank of Eng­land in­ter­est rate in­crease in May. Traders slashed their bets to a one-in­four chance of a move this month, from 50-50 odds last week and a near cer­tainty in March. The pound tum­bled to a seven-week low, while 10-year gilts ral­lied the most in more than a month.

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