Tesla is Burning Through Cash, May Seek to Raise More Capital

Tesla (TSLA) is burning through cash, losing $4000 on every car it sells, according to Reuters. At that pace the Silicon Valley automaker must have spent $359 million in the last quarter in what was a bull market for luxury cars. Last week, Tesla cut its production targets for this year and next. Chief Executive Elon Musk says he is considering raising capital for the company, possible with a new stock sale. Musk has given himself a deadline, promising that by the first quarter of 2016 Tesla will be making enough money to fund a jump from making one expensive, low volume car to mass producing multiple models, and expanding a venture to manufacture electric power storage systems. Tesla has signaled capital spending will drop next year because the company won't be spending on a major vehicle launch. Tesla's stock is still about 70 percent higher than it was two years ago, and 8 percent ahead of its level on Jan 1.