Tesla automotive company is predicted to be on the verge of bankruptcy. Even the age of the electric sports car industry made by Elon Musk is predicted only about three to six months into the future. Factors that cause Tesla is on the edge of this horn is suspected because of market demand for products that continue to decline.
Examples are market demand for Model S and Model X. So no corporate spending on research and development is not balanced with sufficient income. “No doubt Tesla is on the verge of bankruptcy, the company will not be able to survive the next 12 months without capital from Wall Street Banks or Private investors,” said John Thompson, chief investment manager at Vilas Capital Management.
John also mentioned that in order to survive, Tesla requires a large amount of capital at least to maintain the company’s financial condition up to 18 months into the future. The amount of funds needed Tesla predicted to reach 8 billion US dollars.
These funds can be used for capital expenditures, cover operating losses, pay debts due to working capital needs. “But apparently because of a previous investigation by the Securities and Exchange Commission (SEC) and the current investigation (which may be very frightening has not been disclosed by the company), it is likely to be difficult for Tesla to access the market,” John told (30/3/2018).
Then John Thompson compared Tesla’s business operational conditions with Ford. The reason, Tesla which has a value of the company doubled compared to Ford unable to produce cars with a larger amount. “Ford is able to produce as many as 6 billion cars and gain 7.6 billion US dollars, while Tesla is only capable of producing 100,000 cars and losses of 2 billion US dollars,” said John.
Conditions Tesla Motors is stumbling. In the fourth quarter of 2017 and Tesla swallowing losses up to 675.4 million US dollars. Based on TheGuardian data, this loss swelled even more than six times the same period in 2016. At that time Tesla had to lose $ 121 million.