It’s crunch time for Tesla Motors, reports industry watchdog Automotive News. The Silicon Valley automaker loses more than $4,000 on every Model S electric sedan it sells, and mandaged to burn through US $359 million in cash last quarter in a bull market for luxury vehicles. The company recently cut production targets for this year and next. CEO Elon Musk said he’s considering options to raise more capital, which could include selling more stock. He has given himself a deadline, saying that by next year’s first quarter Tesla will be making enough money to fund a jump from building one expensive, low-volume car to mass producing multiple models, and expanding a venture to manufacture electric power storage systems for home and office.
Tesla loses more than $4,000 on every car it builds, which might lead you to wonder how the company stays afloat. Good question, but one option is to perhaps sell more stock.
