Let Tesla Go Broke Please!!! Jaclyn Ng Nara Kaur From Fox Business news: Tesla is seeking up to $3 billion in new tax breaks to help fund about half of its cost for the new battery factory, which Tesla has already disclosed in regulatory filings would be located outside Reno, Nev., about 235 miles from its auto assembly plant in the San Francisco Bay area. “The total capital expenditures associated with the gigafactory through 2020 are expected to be $4-5 billion (sic), of which approximately $2 billion is expected to come from Tesla,” the company said in its latest regulatory filings. Although news reports indicate the breaks could amount to $400 million annually, it may be more like $600 million. Nevada beat out California, Texas, New Mexico, and Arizona for the new $5 billion battery plant, which is expected to create 6,500 jobs, plus generate economic growth. State legislators are likely betting this growth will offset the costs of the tax breaks. Tesla needs that $600 million a year through 2020, when its battery factory is expected to be fully operational, because it’s experiencing significant cash burn. It has $2.6 billion in cash versus $4 billion in liabilities. Tesla has also disclosed its overhead costs are now rising 20% on a year-over-year basis, and research and development expenses are increasing 30%. Capital expenditures continue to bear down as Tesla expands the number of factories and charging stations (the count for the latter now stands at 183 globally).
Posted on: Thu, 04 Sep 2014 17:11:25 +0000
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