Tesla Motors Getting Another $40 Million to Bolster Reserves

 

[social_buttons]

After announcements last month that Tesla will be laying off some employees, scaling back the release schedule of the upcoming Model S, and restructuring the company’s management, Tesla has now announced that they have secured an additional $40 million of funding from “almost all current major investors.”





Tesla says that the additional money is more than it needs, but that it’s necessary to brace for a sluggish economy. The money will be used to focus on its core businesses — including increasing production capacity of the Roadster, expanding it’s electric powertrain supply business and continuing “future product development.”

Forty million is significantly more than we need, said Elon Musk, Tesla Chairman, CEO and Product Architect. However, the board, investors and I felt it was important to have significant cash reserves.

Without a doubt, the current economic woes of the world are strongly affecting start-up next gen car manufacturers like Tesla Motors. Even in an industry with a bright outlook, funding is getting harder and harder to come by.

It’s an awful reality of civilization that the only times we’re ever driven to significantly change things for the better are the same times we, as a society, can least afford to do it.

Image Credit: Tesla Motors





About the Author

Not your traditional car guy.

  • Frank

    I sincerely hope those at Tesla Motors and all others trying to advance alternatives to our currently unsustainable energy and transportation systems can prevail and keep the long term picture in mind.

    Although I agree it is quite unfortunate that current economic conditions will make it difficult to continue making progress it would also be foolish to think that we can wait until it is affordable in the future. As the damage to the environment increases and existing energy supplies become scarce and expensive, it will only make things more costly in the future.

  • Frank

    I sincerely hope those at Tesla Motors and all others trying to advance alternatives to our currently unsustainable energy and transportation systems can prevail and keep the long term picture in mind.

    Although I agree it is quite unfortunate that current economic conditions will make it difficult to continue making progress it would also be foolish to think that we can wait until it is affordable in the future. As the damage to the environment increases and existing energy supplies become scarce and expensive, it will only make things more costly in the future.

  • Frank

    I sincerely hope those at Tesla Motors and all others trying to advance alternatives to our currently unsustainable energy and transportation systems can prevail and keep the long term picture in mind.

    Although I agree it is quite unfortunate that current economic conditions will make it difficult to continue making progress it would also be foolish to think that we can wait until it is affordable in the future. As the damage to the environment increases and existing energy supplies become scarce and expensive, it will only make things more costly in the future.

  • Pingback: Top 10 Electric Cars Coming to the US in 2009/2010 : Gas 2.0()