Tesla Motors Getting Another $40 Million to Bolster Reserves
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