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|Subject: Just in time||Date: 10/11/2012 7:12 PM|
|Author: fleg9bo||Number: 648346 of 778004|
Imagine that. Weeks to go before the election and the Department of Energy has restructured its $465 million loan to the electric-car company to make sure it didn't run out of cash. The New York Times reports:
The specter of cash problems returned last week. The federal government eased terms of its $465 million loan to Tesla to ensure the company didn't breach key financial hurdles. The company then raised $193 million in a secondary stock offering, easing cash concerns.
This week, Tesla's chief executive Elon Musk said that he expected the company to become "cash flow positive" at the end of November... But there are reasons to be skeptical... Another way of looking at the situation is that Tesla had $67 million of cash before it drew down the loan and did the offering. That's not a lot for a company that has been consuming $120 million of cash a quarter this year.
Tesla's CEO has said he raised the $193 million "simply for risk reduction." Yeah. It's called the risk to Obama of Tesla running out of cash right before the election.
As the administration continues to pick losers and losers.
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