Tesla reportedly needing more loans to survive in 2013 image

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.

  • one2mark

    This story is bogus. He/Shinal used old figures, failed to acknowledge that Tesla was just starting production of the Model S and they are now making 400 cars/week and they will deliver over 3000 cars by December 31st 2012 @at over 100k/car. Tesla said all along that 80% of its revenue would come in the 4th Quarter as per their production ramp up and deliveries. Shinal is NOT a good analyst and shame on you for reprinting the same garbage! I have Vin 1815 btw, and the car is simply Amazing! I know what I am talking about.

  • Timothy

    Tesla's got a brilliant business plan. It's great to know that Washington is anxious to invest tax payer monies in this Government Equity Deal. A sucker is born every…

  • JackB

    If Tesla sticks to its original plan of only building 20,000 model S's in 2013, they shouldn't need any additional cash. However, consider that they are starting out the year with over 20,000 reservations backed by $5000 deposits. Their entire planned production for 2013 is already booked and they continue to get additional reservations at a rate higher than 20,000 units a year. Their plans of getting customer wait times from reservation to delivery down to 3 months or less is in tatters. They don't need another loan, they need another stock offering for capital expenditures to build new production lines in the Fremont Factory. While difficult, huge demand is not exactly a bad problem to have.