Tesla Eating Through Almost Half A Million Dollars Per Hour Over The Last Year!

If the latest reports turn out to be accurate, Tesla is burning through around $480,000 every hour as Elon Musk continues to aggressively expand the company and its electric vehicle plans.

According to Bloomberg, the electric carmaker has been spending about $8,000 a minute in recent times and is on track to exhaust its cash pile by August 6, 2018.

While these figures are likely to be reduced when production of the Model 3 ramps up, it is clear that Musk is eager to raise funds for the company following the unveiling of the second-generation Roadster and the Tesla Semi.

Customers looking to purchase one of just 1,000 Roadster Founders Series models are being asked to cough up the full $250,000 asking price as a deposit despite the car not arriving until the turn of the decade. This alone could potentially generate $250 million for Tesla, which, at this rate, are enough for roughly 21 days of spending from the company.

Additionally, it costs $50,000 to place a reservation for the ‘entry-level’ Roadster and $5,000 to secure an order to the Semi. The Semi won’t arrive until 2019 and the Roadster in 2020, but given Tesla’s history of delays, these dates could be pushed back.

In a letter to shareholders on November 1, Tesla was adamant that it has enough money to produce 5,000 Model 3s each week by the end of March.

However, senior Bloomberg Intelligence analyst Kevin Tynan believes the company will need to raise at least $2 billion in capital by mid-2018 in order to achieve Musk’s ambitious targets.

PHOTO GALLERY

  • eye.surgeon

    This type of journalism is very misleading. Every large corporation spends what seems like large sums of money daily. It’s because they produce large sums of money daily. By this analysis the neighborhood lemonaide stand is a better business because it uses less capital per day.

    The best judge of the future of a company is smart people’s willingness to invest in it. Based on market cap, Tesla is doing just fine.

    • Dennis James

      Smart people’s willingness to invest in US’s real estate was doing just fine until 2008, October.

      • Auf Wiedersehen

        Yes until greedy market manipulators got involved and deliberately sold investments they knew were no good. This is completely different and doesn’t hold a whole industry at stake.

    • Michelin

      If I understand right, the article specify the Money lost every hour by Tesla, the half milion isn’t the cash outcome, but the Money burned. This is the reason because GM, FORD and FCA are so prudents about EV production.

      • TheBelltower

        It’s not money “lost.” This is money spent on building capacity for the 3, the Y the semi trucks and now the roadster. It’s an enormous amount of money, but if I’m correct, then it is money well spent on infrastructure.

        • LWOAP

          All that money spent on infrastructure will be meaningless if the company goes belly up now won’t it?

          It would make sense if the revenue they [Tesla] were generating was offsetting the costs of building the infrastructure but it isn’t. They’re burning through money at an alarming rate, their product has serious issues with build quality, and the production of the Model 3 keeps hitting snags. You can ignore it all you want but the proof is in the pudding. Tesla is not in a good position right now and it’s going to get worse if serious changes aren’t made.

    • jaykit

      http://www.zerohedge.com/sites/default/files/images/user245717/imageroot/2017/11/20/2017.11.25teslacashflow.png

      “Free cash flow (FCF) is a measure of a company’s financial performance, calculated as operating cash flow minus capital expenditures. FCF represents the cash that a company is able to generate after spending the money required to maintain or expand its asset base.”

    • jsz00

      LOL I am glad you’re not in charge of my investments if you base how good a company is based on its market cap. Stick to poking people’s eyes.

  • Kash

    I found Bloomberg’s article about how Tesla’s latest promises about batteries for the Semi and Roadster can’t possibly be achieved by current battery and supercharger technology and to get there we’d have to make some serious advancements in battery technology before they arrived far more interesting that the last dozen or so articles about Tesla that have been posted here. It also raised some very good questions.

    • TheBelltower

      I don’t believe that the current supercharger technology would be the same stations used for charging semi trucks. With the roadster, to achieve the numbers quoted by Elon, more than half the weight of the car would be 200kwh batteries. So it’s safe to assume that they’ve achieved some sort of improvement in battery density. I don’t know why charging the roadster would be any different than charging any other EV. Though it would take a lot longer to charge a fully depleted battery.

      The questions that are raised (by the volume of articles lately) has more to do with how the conventional automakers, their suppliers, and the oil industry are threatened by Tesla. No one is waiting in line to buy a gas burning Chevy, and there are hundreds of billions of $’s at stake resulting from the adoption of EV technology. I have no doubt that these articles are being floated by someone with a motive.

      • Kash

        Still, the charger required to get 400mi of range in 30mins would need to be roughly 10x more powerful than the current supercharger (which is also the world’s most powerful).

        experts are looking at the new Roadster and are really doubting the car we saw had the full 200kWh battery pack, because that battery would be twice as big as any other pack Tesla builds, and Tesla already said they won’t be putting anything bigger than the 100kWh in the S or X because of space restraints. The Roadster is much smaller than either of those, if the S and X can’t fit the 200 then how can the Roadster? It’s not about weight, it’s about space and fitting a HUGE battery pack into a tiny car. We know Musk, he wouldn’t be holding back on some new battery pack technology without telling us, he would’ve debuted it with the Semi and Roadster. Now the questions for me are, what is he holding back about these cars and their battery packs? What is he not telling us? Is he banking on battery advancements? What if they don’t come in time? etc.

        I don’t care about the weight of the car, I wanna know how he got from point A to B when B is really point C, what is the real point B in all of this?

        • TheBelltower

          Totally agree. Though I remember the same questions when the supercharger network was announced. At that time, the capability didn’t exist and everyone poo-poo’d the idea. And, besides Tesla’s superchargers, the technology still doesn’t exist for other EV’s. It’s pretty clear that Tesla has something up their sleeve.

          • jaykit

            …”has something up their sleeve”…

            Yes it’s called shareholder dilution to maintain itself as a going concern.

          • Kash

            I hope so, but I wouldn’t be surprised if the Roadster and Semi don’t get delays, just like their other products have gotten.

          • TheBelltower

            I’m sure that the timing won’t be exactly on target. Maybe sooner, maybe later. Hopefully Tesla won’t have a VW bus situation, which VW has been teasing since the 90s.

  • uS’gedlemba

    I like how most people attacked Bob Lutz for being brutally honest about the current state of affairs at Tesla. I see some denialists here still.

  • uS’gedlemba

    39 Articles about Tesla this month on CS …I think it would be a plausible thing to just disclose that Tesla contributes financially to the upkeep of this website, it’s just pathetic how bias this website it.

    • jsz00

      oh STFU, Tesla is the best automaker in the world

    • I don’t think you understand how a website works: the more activity an article attracts the more income you can generate, and it’s very obvious even from these heated comments that any Tesla topic generates very good numbers. Hence, not only Tesla does not sponsor any posts, even without it it makes perfect sense to publish many related articles.

    • Auf Wiedersehen

      Kinda like saying Trump financially supports the US Media….if it’s in the news, they will report it. Or dig it up and make it news.

  • EyalN

    people protect Musk like it was their dad. cute story a guy that wanted to fight the big old school companies with his geek electric cars. didn’t work, bye.

    • S3XY

      You ride a slow motorcycle. South Park…. Fa_.

    • Enter Ranting

      Didn’t work? Lots of Model S drivers would disagree with you.

  • S3XY

    Bunch of misinformation is all I skimmed. Moving on.

    • LWOAP

      What’s wrong fanboy, can’t handle facts?

  • Blackwater

    A total con artist who will just as likely be in prison by 2020 as actually deliver a roadster!

    • Enter Ranting

      Guilty of what? Selling really fast cars directly to the public?

    • Auf Wiedersehen

      Hahaha! If someone is at the top of their game and trying to change things, they MUST be guilty of something! It’s the MOB mentality….HE’S MORE SUCCESSFUL THAN US AND HE HAS LOTS OF MONEY!! HE’S GUILTY!! PUT HIM IN JAIL!!

      Hahahaha! Go back to the beginning and read all you can find….he is doing nothing wrong or illegal.

  • jsz00

    They are still having trouble delivering Model 3 now they’re promising semis and the new roadster. Good luck with that… They’ll never be profitable.

  • Trackhacker

    Tesla sucks, Volvo is the future!

  • Auf Wiedersehen

    Building a company that will be building 3 or more car models and likely multiple models of semi trucks is expensive. What else can one say…compare the numbers to any other car company and I’d bet they’d be close or more.

Lightyear One Prototype Is An Electric Vehicle That Can Be Recharged By The Sun

The solar panels could generate an extra 31-43 miles of range every day.

Honda Dominates List Of Most American-Made Vehicles

Out of the top ten most American-made vehicles, Honda and Acura grabbed six spots.

BMW’s Vision DC Roadster Is A Futuristic Electric Motorcycle

BMW is embracing electrification and it appears BMW Motorrad is preparing to the do the same.

A ‘Subtle’ Pagani Huayra Is Heading For Auction In August

Nicknamed the “Scozia”, it’s got a tartan interior, the desirable Tempesta package and 1.5k miles on the odo.

Tesla Gets Tariff Exemption For Japan-Sourced Aluminum Used In Battery Packs

Tesla is relieved from the 10 per cent tariff on 10,000 tonnes of aluminum for 12 months.

Is The 2020 Mercedes-Benz GLS Truly The 7-Seater S-Class Of SUVs?

There’s a new flagship luxury Mercedes SUV in town and it means business.

Bespoke McLaren Eyewear Can Set You Back Up To $2,000

McLaren’s eyewear collection is said to be advanced, lightweight and technically precise – and pricey, just like their cars.

This Video Brings Need For Speed Into The Real World

A Russian videographer has replicated Need for Speed in the real world.

VW Group Considering New Car Plant In Turkey As Its German Factories Move To EVs

VW wants to shift production of certain ICE-powered models to a factory in Eastern Europe.

Bob Lutz Says GM Should Build A Corvette SUV, Thinks No Porsche 911 Owner Will Get Into A C8

Bob Lutz would like to see a Corvette SUV priced at $100,000 rival the Porsche Cayenne.