Nov 3, 2008

Tesla Motors secures $40 million in financing

ast month Tesla Motors had to cut 25% of its work force as it was unable to secure a $100 million investment round. Failure to raise more money has also slowed down work on their second all-electric car “Model S”, which is a four door sedan.

Just last week company reported that it needed the money to become cash flow positive, and that it was going to get $20 million as early as this week. Yesterday they got $40 million in the form of convertible debt from current investors. The company’s investors include Larry Page, Sergey Brin, CEO Elon Musk, and a few VC firms.

So far Tesla has delivered little over 60 cars, at the same time they have over 1,200 orders for the $109,000 roadster. Let’s hope that this $40 million helps the company and speeds up the production. Unlike all other car manufacturers who have hard time selling their inventory, Tesla has hard time filling all the orders.

Source: Alley Insider