Tesla Loses Money Each Time It Sells A Car?

Tesla Model S (Credit: Tesla Motors)

No matter how big of a fan anyone is of Tesla Motors’ technology and what the company is doing in the automotive industry, there’s no denying that the California-based automaker is a true darling. That fact has come to the surface again following the revelation that Tesla loses money with each car it sells, something that shouldn’t shock really anyone.

This piece of juicy news came from a Reuters analysis of the automaker’s finances. During the last quarter, Tesla went through $359 million in cash. More troubling is the fact that it went from having $2.67 billion at the end of June in 2014, to just $1.15 billion at the end of this June.

According to Automotive News, every time Tesla sells a Model S, it actually loses over $4,000. That figure was calculated using a reckoning of the companies operating losses. To make matters worse, production projections have been cut, which will likely work to shrink the automaker’s already tiny market share. Tesla has an uphill battle on its hands, but that’s something it’s used to by now.

Still, it’s obvious that the California-based automaker has some money problems. Elon Musk has acknowledged that fact and stated that he’s looking into selling more company stock, as well as other options for raising much-needed capital. Interestingly enough, the current shares out on the market have slipped in value a few times in the past week as investors have become wary of risks being taken by Tesla.

Lest anyone think that it’s a tough world out there for automakers, the rest of the industry for the most part is going the opposite direction. As Fortune magazine points out, Ford and GM have both been rebuilding their coffers, thanks in large part to the surge in truck and SUV sales nationwide. In fact, GM has a nice $20 billion cash cushion right now, or $28 billion if you want to count cash equivalents.

It’s important to point out that Tesla is building up for the future, establishing resources that could generate quite a bit of cash in the future. For now, though, everything is very much up in the air.