Hot on the heels of rumors about its dwindling cash reserves, Tesla Motors today announced its board of directors has approved $40 million in convertible debt financing, based on commitments from almost all current major investors. Tesla will use the money to accelerate production of its Roadster electric car, which has a backlog of 1200 orders.
Production will increase from ten cars per week to thirty cars per week early next year, the company said in a statement. So far only 50 examples of the electric car, which sells for over $100,000, have been delivered to customers.
“Forty million is significantly more than we need,” said CEO and investor Elon Musk. “However, the board, investors and I felt it was important to have significant cash reserves.”
On Friday, rumors broke that Tesla was down to just $9 million in cash, having depleted much of its deposit funds and $146 million in investment capital. Many analysts feel Tesla and its investors underestimated the amount of money need to launch such an ambitious project.
11/03, 1:50 PM
posted by:
beatusmongous
Wow. Very nice, especially in these times. Good job, Tesla, still plugging away.
11/03, 1:57 PM
posted by:
A4
coming next week on lln: fraud and corruption at tesla!
11/03, 2:24 PM
posted by:
johnnycanuck
40 million: isn’t that about what GM pisses away every day?
11/03, 2:49 PM
posted by:
Borat
Johnny, GM pisses more then that everyday. That’s everyday before lunch.
11/03, 3:18 PM
posted by:
howsmydriving
News item from the year 2014: “Tesla Motors has just surpassed Ford Motor Co. to become the largest automobile manufacturer in the United States, but still trails world-leader Toyota by a large margin.”
11/03, 3:24 PM
posted by:
A4
News item from the year 2015: Toyotas are so bland and lifeless that they have made everyone who drives one sterile. With the only remaining sales going to the catholic church, how much longer can toyota hold on for dear life?
11/03, 3:39 PM
posted by:
yarddog82abn
Okay….
I wrote them the check, just don’t tell then it’s made out of rubber….
11/03, 3:41 PM
posted by:
yarddog82abn
just kidding, I hope they can make it work…
11/03, 4:24 PM
posted by:
tzu13
Go Tesla. You’re the one American automaker I feel confident rooting for.