Musk admits he ran Tesla out of money

[jkp1187]

Tesla’s Elon Musk: ‘I Ran Out of Cash’ - DealBook Blog - NYTimes.com

Elon Musk admits in a court filing that he's dependent on loans from friends for his personal finance, and taxpayer money for Tesla:

According to the filing — part of his pending divorce case from sci-fi novelist Justine Musk — Elon Musk has been living off personal loans from friends since October 2009 and spending $200,000 a month while making far less. He is now running out of even those borrowed funds, Musk confirmed in an interview with VentureBeat.

Tesla, likewise, is dealing with its cash flow problems by borrowing money from a friendly source — the United States government, which has eagerly backed cleantech startups through a Department of Energy loan program. Tesla burned through $37 million in cash in the last three months of 2009, according to amended S-1 documents, filed with the Securities & Exchange Commission in preparation for its IPO.

Tesla slowed this burn rate in the first quarter of 2010 to $8.4 million, but only by drawing down part of a $465 million loan from the DOE, while reporting a net loss of $29.5 million. Tesla’s sales were flat year-over-year in the first quarter, but declined precipitously in the U.S., according to a former Tesla executive.

I'm frankly not that surprised...Teslas are way cool, but they're ridiculously expensive, and my impression of Musk is that his approach to Tesla has been that of a carnival barker hoping for a big payout from some suckers (i.e., taxpayers,) than that of a serious businessman.

[Frank Lee]

Another start-up that only "thrived" on initial investors' greed? WOW!!! WHO KNEW!?!

[bgd73]

tesla.

it is as if they built something as geniused as the real tesla.. funny enough, the real tesla got ripped off more than once.. and even put down by idiots like edison. Todays attempt really is a criminal..still robbing his name.

interesting drama.

if there is incentives to step up for cleaner/efficient why are tortured by transverse screaming ricers?

lets play "best 1.8 liter" again... I say again because it would repeat knowledge already known...and win... again...

do they all have to be a beetle? no. do they all have to be an 87 subaru with ten gears...? of course not. Can't somebody put the fear of honda civic away and build a champion 3 main boxer once and for all?

buttheads.

I am ready to pack up. I am one disgruntled veteran.

this place took my love of everything...except common sense. I will defend it till i am done.

[jamesqf]

Teslas are ridiculously expensive? Not for the type of car they're building. Try comparing to prices for e.g. Ferrari: New Ferrari Prices | 2011 2010 Ferrari Car Pricing, MSRP, & Dealer Costs at Automotive.com Seems to me that in their target market, Tesla's pretty cheap.

Also, you have to realize that this info about Musk's finances comes from a divorce filing, where naturally he's going to cry poor.

[Frank Lee]

Originally Posted by jamesqf

Also, you have to realize that this info about Musk's finances comes from a divorce filing, where naturally he's going to cry poor.

The company's finances are no better...

[jkp1187]

Originally Posted by jamesqf

Teslas are ridiculously expensive? Not for the type of car they're building. Try comparing to prices for e.g. Ferrari: New Ferrari Prices | 2011 2010 Ferrari Car Pricing, MSRP, & Dealer Costs at Automotive.com Seems to me that in their target market, Tesla's pretty cheap.

Also, you have to realize that this info about Musk's finances comes from a divorce filing, where naturally he's going to cry poor.

Yes, $110,000 for a two-seat roadster *is* ridiculously expensive, especially for one that can't be refuelled in ten minutes. I think I'd rather have the Lotus Elise, which shares some of the same components as the Tesla, handles better, is 700 lbs. lighter, is $60,000 cheaper, and has at least twice the range.

At least, for those of us whose last name isn't Rockefeller....

[Frank Lee]

Come to think of it, I do want a Tesla!

I'll get one on payments, no money down. Then, I won't make any payments.

The taxpayers are going to end up footing the bill for this fiasco anyway. I might as well recover a chunk of it.

[jamesqf]

Originally Posted by jkp1187

Yes, $110,000 for a two-seat roadster *is* ridiculously expensive...

Lots cheaper than a Ferrari, same ballpark as upper-end Porsche. Of course you could argue that those are ridiculously expensive too, but people do buy enough of them to keep their companies in business and making profits.

As for range... If you have the money for one of those, then for trips of more than a couple hundred miles, you fuel up your private jet, no? But seriously, the only trip I've made in a decade or more that would exceed a Tesla's range (driven conservatively) was when I went to pick up the Insight.

[ShadeTreeMech]

Is the tesla ridiculous expensive? of course

is the range to blame? heck no

Even living in the rural area I live I don't generally drive more than 40 miles before i come home again. that is within the range of most battery powered cars. And it has been said it only takes 9 seconds to refuel an EV--ie, 9 second to plug the thing in when you get home.

I'd love to steal the franken swift, but I would get caught after bragging on here about its mileage

[jkp1187]

Originally Posted by jamesqf

Lots cheaper than a Ferrari, same ballpark as upper-end Porsche. Of course you could argue that those are ridiculously expensive too, but people do buy enough of them to keep their companies in business and making profits.

The so-called "Chrysler TC by Maserati" was far less expensive than other vehicles made by Maserati. But because it was little more than a gussied-up K car, that did not mean that its $33,000 MSRP (in 1989 dollars - probably more like $60,000 now,) made it a bargain since other Maseratis cost a lot more.

People aren't buying enough of the Tesla to keep that company in business. That's the point. Musk is the one running it, and so far, he's not doing that well.

I don't understand why everyone feels the need to defend Tesla. It's a neat concept, but that doesn't change the fact that it's a badly-run company.

And I don't see any justification for throwing our tax dollars at a failing company that makes luxury products for the rich. Anyone who thinks it's a great investment is welcome to purchase my 'share' of that investment; I accept PayPal.