According to tipsters at Tesla Motors, the Detroit 3 aren’t the only U.S. automakers strapped for cash. The electric car upstart is said to be down to just $9 million in funds. The dire situation was purportedly disclosed by Tesla executives at an emergency meeting earlier this week.
While the rumors have not been officially confirmed, the situation sounds very plausible given the recent layoffs and cost-cutting measures implemented at the company, including the delay of the Model S sedan.
The Silicon Valley darling has received deposits for roughly 1,200 Roadster models, ranging from $4,000 to $60,000, tipsters say. What’s more, of those orders, between 100 and 200 of them have already been paid in full — over $100,000 apiece — one source claims. To date, only 50 cars have been delivered. All this means it’s very likely the company is underwater on deposits.
So what might happen next? The obvious answer would be for Tesla to take more funding. After all, its $146 million to date is peanuts in automotive terms. But given the current financial climate in the United States and abroad, that won’t be as easy as it once was.
PayPal founder Elon Musk has already dumped tens of millions of dollars of his personal $330 million fortune into the company, so it’s certainly possible he will attempt to lead another round of funding. Alternatively, he might turn to an auto giant for a possible sale of the company as an exit strategy, though that’s just idle speculation.
One thing’s for sure — with Musk now in position as Tesla CEO, he, along with the company’s other major investors, are probably crafting a strategy as you read this. Stay tuned.



10/31, 2:07 AM
posted by:
TOZO
With GM buying Chrysler, Ford could fix itself by buying this hot little gem of a company for a few million. It sounds more promising than a GM-Chrysler or even a Porsche-VW semi-merger.
10/31, 4:09 AM
posted by:
JakeK66
Who saw this one coming? Oh yeah, I did. When something seems too good to be true, it usually is. Tesla’s whole model seemed like it couldn’t fail, enough promising products in the pipeline, how could it fail? Well guess what? It’s harder than it looks to create a car company from scratch, even with tons of free publicity and record gas prices on your side (at least a couple months ago, gas is down close to $2 where I live).
I guess George Clooney will have to service his Tesla with his huge ego, I never knew how he could fit him and his ego together in that two seater anyway.
10/31, 5:18 AM
posted by:
howsmydriving
Sad. I don’t see Ford investing in Tesla, because Tesla’s are sporty, and Ford has spun-off all of its sporty acquisitions, leaving the dreaded VOLVO in its stable.
10/31, 9:38 AM
posted by:
mayer_ray_nagin
Typical loser california company. Californians and their idiotic mentality are the primary drivers behind the finacial problems in the world.
10/31, 9:58 AM
posted by:
oldraven
I called this just after the second lawsuit. It was obvious then that a startup showing this much corruption so early on was doomed.
10/31, 10:01 AM
posted by:
oldraven
And howsmydriving, you’re forgetting that Ford still has Mazda under its wing.
I just saw my first two digit gas price in almost three years! 98.6c/L.
10/31, 10:02 AM
posted by:
A4
the cost of R&D on a brand new electric model would likely be significantly more than just buying Tesla so if any of the big 3 can come up with the cash, (maybe not chrysler – cause they have electric models already coming, and theyre broke) then they should snap this up
10/31, 10:32 AM
posted by:
rds130
Maybe Tesla shouldn’t have ousted Martin Eberhard….*cough cough*
10/31, 10:36 AM
posted by:
johnnycanuck
oldraven, where are you? I’ve seen $1.05 here in Vancouver/Lower Mainland, but that’s it. Mind you, if they took out our @%*?##@* carbon and transit taxes we’d be right there too. I especially love subsidizing public transit; if there aren’t enough smelly bus people to cover the cost then get rid of them (the buses and the smelly bus people) and spend the money on better roads.
10/31, 11:54 AM
posted by:
Typical_LLN_Poster
Hot little gem? They’re about as cold as the jar of pickles in my fridge.
For some, this will be proof that the electric car technology isn’t just “sitting on the shelf”. Not only that, but the general public simply do not want electric cars. For others it will be more fuel for their anti-GM conspiracy theories.
10/31, 12:07 PM
posted by:
02WRXPSM
You’re all wrong, as is the article itself.
http://news.cnet.com/8301-11128_3-10079963-54.html?tag=newsEditorsPicksArea.0
10/31, 1:23 PM
posted by:
Borat
02WRXPSM, I read the article you linked.
What is confusing to me is that the CEO with personal fortune over 300 mils is not willing to part with 20 mils needed to provide company with positive cash flow. It is either his story is not all that believable or he does not believe in future of Tesla to sack in another 20 mils. Hillary Rodham Clinton believed more in her presidency, and of course was wrong.
10/31, 2:06 PM
posted by:
yarddog82abn
California Prop. 10, that is on the ballot this November 4th. is meant to help alternative fuel cars, just look,
http://www.prop10yes.com/ Tesla Motors is in California, this bill if pass will help Telsa get out of the hole it’s in….
10/31, 5:06 PM
posted by:
adVANTAGE
I find it quite stupid and suspect that GM and Ford are given billions of dollars in aid when they’re in trouble and companies like Tesla who are leading the way in future technology and global rejuvenation are hung out to dry.
11/01, 2:22 AM
posted by:
maxcar
johnny, you’re as old school as they come. speaking of smells, wake up and take your last wiff of oil. it isn’t here to stay. the sooner north americans get a clue about their idiotic dependency on oil, the sooner this society can move on and prosper. to be in denial at this point is purely a head in the sand attitude. the same attitude that got the big three on their knees and at the brink of financial collapse. i’m as big a gasoline addict as anyone here, but unfortunately i’m dependent on the the whims of the greater population that this market caters to. if that population happens to be so behind the times, i’m fracked. i guess i should just join you and whine about gasoline prices, then belittle people that actually have found a solution to it by choosing mass transit, bi-atch about how useless diesel is as a stopgap, and throw my hands in the air and go buy a stopgap vehicle, like a chrysler product, that will last about 2 days beyond the warranty period. i guess i’ll fit right in. by golly.
take about three steps back and look at the big picture.
the tesla is a nice motor car, by the way.
11/01, 6:04 AM
posted by:
johnnycanuck
maxcar, that’s the whole point, I have to take 3 steps back to see that there’s no one on the empty bus that’s in my way. Call it old school or whatever you want, but I don’t feel it’s my responsibility to subsidize someone else’s ride to work; that’s their problem. Now please tell what’s wrong with being happy that gas is again relatively cheap, perhaps albeit temporarily. That’s where your little rant loses its mileage. I can’t drive an electric car yet- very few can- but I would in a heartbeat. I’d also happily drive a diesel. I have several fuel efficient vehicles that I do drive including a motorcycle. Are you getting the gist of this? The key element is that I do the driving, and It’s pretty obvious as you go about your business on this great big continent that mine is not a minority opinion. By no means am I saying that public transit is irrelevant, but if you have properly designed roads and highways that keep traffic moving that is going to do far more to save our precious fossil fuels than having a half dozen people ride around on a 50 seat bus stuck in the same traffic jam that you are.
And yes, the Tesla is a lovely car.
11/01, 12:03 PM
posted by:
maxcar
your point is better understood this time around. it may be because i’m not reading under the influence of more than a few gin and tonics too. i guess what i was trying to say last night is that in north america, there is a certain negative stigma associated with riding a bus that i can’t quite understand. the opening scene of “crash” (big windows, so everyone can look in and see all the losers) and your previous post about sums it up. i latched on to the people that ride a bus = smelly part, rather than the empty bus syndrome. it is a bit of a self-fulfilling prophecy though. if i think that people that ride the bus are smelly (figuratively speaking), i wouldn’t want to be lumped in with them, and therefor, i won’t ride the bus. instead, i’ll drive my car alone, along with everyone else, and overload this stretch of road and sit bumper to bumper for the next hour. building wider and wider roads is not a viable solution in the long term. i was reading about a u.s. city where adding extra lanes had occurred. when the project was complete, the new road had already exceeded it’s capacity. this is not an isolated case either. you and i both post on this site because we love cars and love to drive. i get that. mass transit isn’t for everyone, everywhere, all of the time. in congested cities, yes. on a routine commute in lieu of bumper to bumper, yes. going to the store to pick up a bottle of milk, no. etc., etc.
it’s the stigma i have a problem with.
11/01, 2:57 PM
posted by:
johnnycanuck
maxcar, if you haven’t read it already check out mayer_ray’s post on the EU incentive article. I probably wouldn’t have put it quite that way (but who knows once the gin has kicked in), but still the sentiment isn’t that far off. I see it here to, acres and acres of once single family dwellings being mowed down to make room for nothing more than glorified apartment blocks all the while any attempt to upgrade the road infrastructure to keep up with the increased density is at best futile. I am not opposed to my tax dollar going towards fixed transit lines such as rail or in our case a mainly above ground system called Skytrain. That’s money well spent and if it ended there so be it. It’s when I hear that the money is being spent not only to subsidize a lack of ridership but pay a unionized bus driver’s salary that is where I get my back up.
11/01, 9:00 PM
posted by:
Get Real
Obama will save Tesla, he will save everyone. Long live our savior.
11/02, 12:29 PM
posted by:
maxcar
johnny, i have not read the post. thanks for the tip.
11/03, 12:17 PM
posted by:
The Stig
Tesla’s problem is 1) price point, 2) the battery technology they chose is now obsolete and 3) Musk.