Tesla Motors will be in a very difficult situation next year without loans from the U.S. Department of Energy, MarketWatch reports.
Without the hundreds of millions of dollars received by Tesla from the federal government this year, the electric-car maker’s finances would be „gasping for air as 2012 winds down”.
The report’s author, John Shinal, believes Tesla Motors, valued at $4 billion, will rank among the top candidates in Silicon Valley for a 2013 stock collapse if it doesn’t receive significantly more cash next year. Tesla’s finances are in even worse shape that those of Zynga and Groupon, says the report.
On September 30, Tesla had cash and short-term securities of $86 million, down from $280 million at the start of the year. This means Tesla has less than six months’ worth of cash, given that it burned through almost $200 million during the first nine months of 2012.
The company’s current assets were worth $285 million at the end of the third quarter, including $159 million in automobiles and smaller items such as accounts receivable and restricted cash. That is down 24 percent from $373 million at the start of 2012. Factories and other longer-term assets included, Tesla Motors held $809 million in assets at the end of the third quarter.
At the same time, it had liabilities of $837 million. „In other words, even with government help, Tesla’s balance sheet is in the red,” concludes MarketWatch.
by Dan Mihalascu
) - Friday, December 28th, 2012 - filed under Industry
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