Tesla is spending around $1 billion every quarter; could run out of cash by August 2018
Tesla is bringing up surprises one after another. After the Model 3 compact sedan, the American EV manufacturer unveiled its Semi and Roadster models just a few days ago. Also, it teased the new electric pickup truck as well. But, the company is spending $8,000 per month that could lead it to bankruptcy in near future.
As it is spending $480,000 every hour that means Tesla’s quarterly spending is around $1 billion. With this rate of expenditure, the automaker could run out of money by August next year. While getting fresh investment might not be the problem for Tesla, question remains how long it will operate without profit. Despite creating quite a sensation around the world, Tesla Model 3 wasted precious time in development, while several other auto majors around the globe have advanced significantly.
Volume production has been a concern for the brand. Also, Tesla is yet to reach several global markets where demands for electric vehicles are increasing. High pricing of the cars are also keeping the sales figure below the expectation level.
Tesla Model 3, which has been very successful in garnering attention of the buyers and investors, is yet to reach the garage of the buyers who have already booked the car at the very initial stage. To put it simply, this much awaited electric vehicle is falling behind the schedule. Meanwhile, Tesla boss has promised three more models among which two have been already unveiled. Promising and creating hy7pe, but not delivering the products on time is serious affecting the brand’s image.
Questions have been raised pointing towards these issues. While Tesla is yet to start full delivery of the Model 3 compact electric sedans, what’s the point of shelling out $250,000 for the Roadster that has no chance to be delivered before 2020? Clearly, Tesla is being very ambitious, but not practical and at this rate of expenditure, it might see the loss of precious opportunities to grab the EV market that is expected to see a massive boost in coming years.