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Tesla’s Burning

Friday, 24 November, 2017

Could be the hot title of a film, that, Tesla’s Burning. You know, in the style of Paris is Burning and Mississippi Burning. Not to forget Burn After Reading and, the very topical right now, Burn Hollywood Burn.

But this is a very different script and the full title goes: Tesla’s Burning Through Nearly Half a Million Dollars Every Hour. This is a Bloomberg production and here’s a sneak preview:

“Over the past 12 months, the electric-car maker has been burning money at a clip of about $8,000 a minute (or $480,000 an hour), Bloomberg data show. At this pace, the company is on track to exhaust its current cash pile on Monday, Aug. 6. (At 2:17 a.m. New York time, if you really want to be precise.)

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. Investors don’t seem concerned. Tesla shares rose almost 3 percent to $317.81 Tuesday, giving it a market capitalization of $53 billion. Ford Motor Co. is worth $48 billion.”

The “Monday, Aug. 6.” referred to there, by the way, is August 2018. So will this drama end next year? Well, the wily Elon Musk is always good for a surprise twist and last week he unveiled his latest plan to raise funds. The Tesla CEO is asking customers to pay him upfront for vehicles that may not be delivered for years yet. It’s an old trick, that, but it has worked in the past. Taking In Huge Deposits to Help Fund Tesla Through its Immense Production Challenges is not a very catchy title, but it’s far less scary than Tesla’s Burning. To be continued.


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