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Tesla Is Not Bankrupt Yet But It Needs Cash Now

Apr. 03, 2018 5:59 PM ET by Jared Rosenholtz Industry News / 42 Comments Tesla has some serious debt obligations. Automakers like to make some outrageous statements on April Fool's Day. As a joke, Tesla CEO Elon Musk sent out a tweet saying his company had gone bankrupt. The statement was of course, a joke, but things haven't been so rosy for Tesla lately. The company burns through money at an alarming rate and production of the Model 3 sedan is still behind schedule. As Tesla continues to grow, it can be easy to loose sight of how big the problem has become. According to Bloomberg, the company is currently operating with over $10 billion in debt. The massive debt is quickly becoming a worry for investors. "It's pretty likely they're going to have to go to the capital markets in the not-too-distant future," said Bruce Clark, a credit analyst at Moody's Investors Service. The company has $1.2 billion of debt to pay off in the next 12 months, and raising the money could be difficult. Tesla has seen its credit rating cut after failing to meet production goals on the Model 3. With spending currently estimated at around $6,500 every minute, Tesla is predicted to run out of funds before the end of the year without more financing. Musk is very good at raising capital, and Tesla does have several financial options here to raise the money. We wouldn't categorize this as a death sentence, more of a serious wake up call. Tesla may not be bankrupt yet, but the debt is piling up and at some point we may have to question if the company can turn it all around. Tesla Tesla

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Tesla Model S Jared Rosenholtz Editor-at-Large After graduating with an MBA, Jared pursued his love of cars by becoming an automotive journalist. An internship with CarBuzz grew into his current position as Editor At Large. Jared now spends most of his time evaluating new vehicles and chasing the latest news stories in the automotive industry. When he’s not attending Cars & Coffee events on the weekend, Jared loves to watch NFL football and cruise around with the top down in his German convertible. Contact Jared @Carsnbites @jar_rosenholtz LoginSign Up Home News Features Car Reviews Car Advice 2021 CarBuzz Awards New Cars Used Cars Future Cars Compare Cars Sell My Car Car Dealerships Buy Here Pay Here Used Car Reviews Popular Tags Cars # Video # TOP # Spy Shots # Reveal # Rumor # Auto Show # Supercar # Tuning # Car Culture # Industry News # Motorsport Acura Alfa Romeo Aston Martin Audi Bentley BMW Bollinger Bugatti Buick Cadillac Caterham Chevrolet Chrysler Dodge Ferrari Fiat Fisker Ford Genesis GMC Hennessey Honda Hyundai Infiniti Jaguar Jeep Karma Kia Koenigsegg Lamborghini Land Rover Lexus Lincoln Lordstown Lotus Lucid Motors Maserati Mazda McLaren Mercedes-Benz Mini Mitsubishi Nissan Pagani Polestar Porsche Ram Rimac Rivian Rolls-Royce Spyker Subaru Tesla Toyota Volkswagen Volvo By Make Acura Alfa Romeo Aston Martin Audi Bentley BMW Bollinger Bugatti Buick Cadillac Caterham Chevrolet Chrysler Dodge Ferrari Fiat Fisker Ford Genesis GMC Hennessey Honda Hyundai Infiniti Jaguar Jeep Karma Kia Koenigsegg Lamborghini Land Rover Lexus Lincoln Lordstown Lotus Lucid Motors Maserati Mazda McLaren Mercedes-Benz Mini Mitsubishi Nissan Pagani Polestar Porsche Ram Rimac Rivian Rolls-Royce Spyker Subaru Tesla Toyota Volkswagen Volvo By Car Type SUVs Crossovers Sedans Coupes Trucks Sports Cars Wagons Vans Hatchbacks Convertibles Small Cars Luxury Cars Electric Cars Hybrid Cars Future Cars By Price Up to $15K $15K - $25K $25K - $35K $35K - $45K $45K - $55K $55K - $75K $75K - $100K $100K - $200K $200K - $300K Above $300K Back To Top