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Tesla has a problem. Maybe a big problem

Time is running out for Tesla's unmet promises.

The leading electric car maker's struggles to ramp up production of its first mass-market car, the Model 3, could mean a cash crunch for the upstart automaker.

Tesla (TSLA) has thousands of customers lined up ready to buy a Model 3, which has a $35,000 starting price. But it keeps badly missing its production targets, and it is burning through cash as it does so. And it faces deadlines to pay more than $1 billion in bonds due over the the next year - $230 million due in November and $920 million next March.

NOTE: Most Teslas end up costing over $50,000.

Tesla Buyers Hear Clock Ticking as $7,500 Credit Phases Out

The clock is ticking for Tesla Inc. customers looking for incentives on their purchase.

The $7,500 federal tax credit for electric vehicles is set to start phasing out for the Model S, Model X, and Model 3 after Dec. 31, according to the company’s website. The Palo Alto, California-based carmaker is the first to trigger the reduced incentive in the U.S.

While tax credits have helped boost electric vehicle demand in the U.S., they remain only 1.1 percent of the market. The federal government support was designed to decline once manufacturers reach higher production levels and reduce their costs. Two quarters after a company reaches 200,000 sales in the U.S., the incentive is cut in half to $3,750. Two quarters later, the credit amount is reduced by half again, and it’s eliminated half a year later.

A Tesla spokesman confirmed that the company delivered its 200,000th vehicle in the U.S. this month, so the full $7,500 tax credit will remain in place until Dec. 31. After that, the incentive starts ratcheting down and will be eliminated at the end of 2019, assuming there’s no change to the program.

https://money.cnn.com/2018/03/28/news/companies/tesla-model-3-cash-crunch/index.html

Tesla's problems are growing — here's everything that has gone wrong so far this year


Tesla has a history of proving its doubters wrong, but over the last few months, the automaker has faced a number of challenges.
From missed production targets to questions about its financial health, Tesla may be at an inflection point.
Whether Tesla can overcome recent challenges could determine whether 2018 sets the stage for another improbable triumph or raises serious questions about the company's future.

https://finance.yahoo.com/news/tesla-apos-problems-mounting-apos-134221377.html