June 4, 2010 – (Motor Sports Newswire) – The other day, the Wall Street Journal reported that Tesla Motors “incurred a net loss of $29.5 million in the first quarter” of 2010, adding to a total net loss since its founding of “about $290.2 million.” Of course, we can’t forget that CEO Elon Musk recently said he was broke. None of this is particularly new, but it is constantly being talked about, and WSJ opinion writer Holman W. Jenkins Jr. wrote:
What we have here is a political kludge of the murkiest order. Tesla reportedly was within hours of closing a deal for a plant site in Downey, Calif., when the Toyota offer materialized. … Whether these signs of official favor will be enough to float Tesla’s IPO is highly questionable (though don’t be surprised if Goldman Sachs volunteers to underwrite the offering) but a bet on Tesla clearly has become an undiluted bet on government subsidies.
The news of Tesla’s money troubles are being reported all over the place, with CTV proclaiming, “Tesla Motors now a financial car wreck.” Even with Toyota‘s recent help through the partnership announcement, something needs to happen to turn the tide of public and media opinion. Let’s hope former Tesla employee Darryl Siry is wrong when he wonders if Tesla PR response will be to “deploy the ‘douchebag’ offense.” You know the one.