Tesla Sparks Fresh Cash Concerns After Model 3 Rollout Stumbles
- Production delays may prompt Musk’s return to capital markets
- Carmaker has burned through $2.6 billion in two quarters
Tesla Shares Tumble on Potential Loss of Tax Credit
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Tesla Inc.’s delay in getting mass production going is increasing the likelihood that Chief Executive Officer Elon Musk will need to turn to Wall Street for more capital.
With battery bottlenecks holding up output of the cheaper new Model 3 sedan, Tesla may need more funds in 2018. While Musk has brought in more than $3 billion this year from equity, convertible bond and debt offerings, his electric-car maker has burned through about $2.6 billion in cash during just the last two quarters.