“With Tesla desperately short on cash, and breaking even at best on its sales of its Roadster sports car, Musk is clearly planning to use Model S buyers’ deposits as a source of capital. It’s a sneaky way of turning them into lenders, without giving them the recourse that, say, GE Capital might have.”
“Yesterday, we noted an upcoming Car & Driver interview with Tesla Motors CEO Elon Musk in which he claims GE Capital is investing in the electric-car maker. Today, GE told us nuh-uh.
Musk, apparently eager to give the magazine an exclusive and reassure buyers who must put down a sizeable $40,000 deposit for a car that they won’t see until 2011 at the earliest, said that GE Capital was an investor
….
Update: Tesla now says GE had promised an investment at the time Musk gave the interview to Car and Driver, but backed out the day it was supposed to wire funds to the company.
”
“One of Tucker’s most innovative business ideas caused trouble for the company, however. His Accessories Program raised funds by selling accessories before the car was even in production. This concept was investigated by the U.S. Securities and Exchange Commission and the United States Attorney, and led to an indictment of company executives. Although all charges were eventually dropped, the negative publicity destroyed the company and halted production of the car.”
Deja Vu.
I really want this company to work. But just too risky for my blood without an sense of secure funding. What I don’t understand is why they don’t partner with one of the automakers to build the damn thing.
