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Tesla News
777Date: Friday, 29 Oct 2010, 11.13 | Message # 1
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Tesla's line-up currently consists of one model: the $100,000-plus Roadster. In 2012 the company is expected to double their offerings with the more affordable Model S sedan (expected to run in the $60,000 range). Now, CEO Elon Musk is hinting that Tesla could use a common platform to roll out several new models, including a cabriolet, a crossover, and a van.

The presentation, as reported by Wired, is part of Tesla's road show to woo financial types to the company's upcoming IPO, which aims to raise $178 million and hopes to value the company around $1.4 billion.

Turns out, Musk could use that public offering cash sooner rather than later: according to the New York Times Dealbook blog, the Silicon Valley wunderkind -- who has made several fortunes with companies such as PayPal, Zip2, and SpaceX -- has run out of cash.

On paper, of course, the tech mogul is still worth an enormous amount. But according to papers filed during Musk's divorce proceedings, he's sunk his last bit of cash -- around $35 million -- into Tesla, creating a bit of a liquidity issue in his personal life. The company, of course, has been the recipient of quite a bit of government money (including $465 million in low-interest loans from the Energy Department) and insists Musk's personal cash-flow problems in no way undermine the viability of the company.

As for Musk, he's been "reduced" to living off of loans from wealthy friends -- a decision he made in lieu of a quick cash-out of his stock, and one that will likely work out better for him in the end. (Not to mention the fact that Musk is technically required to own at least 65 percent of Tesla in order for the company to keep the loan from the Energy Department). But before you start feeling bad for the South African native forced to live on the hand-outs from his wealthy pals, check out another tidbit from those divorce papers, as reported in Dealbook:
"He subsists, according to court filings, on $200,000 a month and still flies his private jet."

All in all, his are problems I'd like to have.


 
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