Tesla hovering on the edge of bankruptcy

U.S. electric vehicle manufacturer Tesla will run out of financing in 10 months unless it adopts strict economy measures, media say. The upper management of the company, including CEO Elon Musk and the CFO, have pledged to make every effort needed to remedy the situation.

According to U.S. media sources, Elon Musk has sent letters addressing his employees with the pleas to be extremely careful with spending money. He also advised double-checking the necessity of all ongoing expenditure, including subsistence allowances, remunerations for spare parts, costs of hiring stand-in specialists, etc.

This is not the first time Tesla faces the risk of bankruptcy. Two years ago, a Bloomberg article came out that claimed the car company was spending 8,000 USD per minute. Going on like this, the newspaper emphasized, it would have to face insolvency by August 2018 unless the board of directors took emergency measures (it did).

Bob Lutz, a former VP of General Motors, was also among those prophesizing the death of Tesla, Inc. He said in an interview once that ‘the company was moving towards the grave.’

Photos: carbuzz.com