Sign up to receive 5 free days of our daily summary for tech news.

Read this article for free.

Already a subscriber? Log in here

Autonomous Vehicles

The Truth about Tesla’s Cash Burn

In its most recent quarter, Tesla Motors reported negative free cash flow of $558 million, raising alarms from analysts that the company could run out of cash by year’s end. Even the announcement of a new $500 million credit facility last month has not quieted speculation that the company will need more money.

“They may need access to further funding,” Nishit Madlani, an analyst at Standard & Poor’s, said recently in an interview.

Tesla’s cash burn—its stockpile has dropped from $2.7 billion to $1.5 billion in the last three quarters—has drawn gawkers on Wall Street and in the press. Most of the attention has been on its massive capital expenditures, which capture the imagination and are indeed the major driver. The company has said it plans total capital expenditures of $1.5 billion this year, including its “Gigafactory” battery plant in Nevada and a paint shop being touted as the world’s most advanced.

But new factories only tell part of the story.

What Is The Information?

Notebook b5103017ee163370a1667c9ce59ab0ef023875a17888105d26c185cadf31bb69

Daily news analysis

Every weeknight, we'll send you our reporters’ views on the day’s top tech news—distilled into one email.

Notes bb3aa5069205d702dda37fc71dc6f1c59df2310c4379304e9f1199f052af4884

Exclusive Articles

We broke it first. Receive original reporting, stories, and exclusives you won't read anywhere else from the largest newsroom in tech.

Conference calls c9e664e8b96ee347d3e92b8309938f268422b9db98cfabca5c826fbb75054b23

Conference calls

Go deep into areas like crypto and VC diversity—or get real-time analysis of breaking news—via conference calls with our reporters and other experts.

Events 499acedd16cffc41445edd76bfd302b2836c2a27419890f17130a6b10e2aa3df

Special Events

For no extra fee, subscribers get access to more than a dozen events yearly, from intimate dinners to larger gatherings with marquee speakers.

Access the best reporting on the tech industry read by tens of thousands of global executives.

Become a contributor

Share your views and find other subscribers by completing your profile. You’ll be listed in our contributor directory.

Org Charts

Access the only collection of tech company org charts. Our expanding database includes companies like Amazon, Snap, and Uber.

Slack community

Discuss topics and current events with our subscriber-only Slack group and share news about your company with other subscribers.

Share with your team

Subscribers can unlock any article and share it with friends and co-workers through a special share link.

Stay up to date on Silicon Valley

Sign up for Jessica Lessin’s (The Information’s CEO & Founder) free Saturday newsletter and also receive a complimentary week of our daily afternoon tech commentary email.

Already a subscriber? Log in here

Recent Articles

Autonomous Vehicles

Tesla Turnover Revamps Executive Team

By Amir Efrati

Venture Capital Uber/Lyft

Saudi’s Uber and Tesla Investor Thrust Into Crisis

By Amir Efrati

Autonomous Vehicles

The 200 People Behind Tesla Autopilot

By Amir Efrati

Autonomous Vehicles

What Makes Tesla’s Autopilot Different

By Amir Efrati

Tesla is banking on a huge fourth quarter, expecting positive cash flow inclusive of capital expenditures. Hiccups could prove costly.