Is Elon Musk running out of money?

Hi-Tech Iulia Postelnicu
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Tesla’s CEO has a great fortune, but it is possible that he is now running out of money?

According to reports, Elon Musk’s company, that has about 3.5 billion dollars, might be in a financial turmoil soon.

The reason why Tesla might have a financial problem is the latest vehicle they are launching. The Model 3 is prety expensive and will be out on the market soon.

Their problem is caused by the manufacturing process, which needs to be changed for this model. These changes cost them a lot of money.

As the model has already been pre-ordered by hundreds, they need to produce them. The CEO thinks that this production will cost them more than one billion dollars.

Musk opened up about this issue on Wednesday. He thinks that they are close to the edge right now. They need to have no capital raised for this vehicle or things will turn out for the worst.

Also, if the capital is not raised, then some problems could be encountered along the way. They need to offer the best product. To reduce the risk of having customers complain about the manufacture, they might need to do something with the capital.

This is not the first time when Musk has financial issues. It happened to him before, during the crisis. His both firms were close to insolvency.

Musk has been named a risk taker. In the past three years, his company lost a lot of money on projects, more than ten billion dollars.

He still has hope with the new models and thinks that they can manage to create a lot of them weekly.