12 Comments

Summary:

As part of a $40 million internal funding round that Tesla is raising from its original seven investors, Musk told the audience at the Web 2.0 conference in San Francisco on Friday afternoon that he will likely put down about half of that figure.

If you’ve been questioning the commitment of Tesla’s CEO and Chairman, Elon Musk, to keeping the electric car startup alive, this should reassure you: As part of a $40 million internal funding round that Tesla is raising from its seven original investors, Musk told the audience at the Web 2.0 conference in San Francisco on Friday afternoon that he will likely put down about half of that figure. So all in all, after that internal round closes, Musk will have invested around $75 million out of the roughly $185 million that Tesla will have raised to date. Which is no small change, by any measure.

Over the past month, Tesla has been rocked by the financial markets, which have left it unable to raise a large funding round on favorable terms — in other words, terms that would not involve giving up control of the company, Musk said. But he also said “It’s tough to carry it [the investment] all yourself.”

Despite the speed bumps, Musk remains confident in Tesla’s value. When moderator John Battelle asked him why GM doesn’t just buy the company, Musk said he wasn’t sure GM could afford it. The auto giant reported a $2.5 billion net loss last week and said it powered through $6.9 billion in cash during the third quarter, leaving it on the brink of going out of business.

You’re subscribed! If you like, you can update your settings

  1. Tesla has new funds its green car startup | Novogreen Sunday, November 9, 2008

    [...] Read more about this story here. [...]

  2. At the current price of more than a hundred thousand dollars, the Tesla Roadster may not exactly be the EV solution for every one. However what the Tesla has done, with its undeniably elitist cache, is portray the EV as something sexy, desirable and to be aspired to, so perhaps that is some service it performs for the cause of EVs as a whole.

  3. Tesla CEO, Elon MuSk, Reaches Into His Own Pockets : tinyComb Monday, November 10, 2008

    [...] Earth2Tech, Web 2.0 Summit November 10, 2008 | david | tesla  | [...]

  4. Web Firms Step Into Green Shadow in the Valley – GigaOM Tuesday, November 11, 2008

    [...] a standing ovation for his keynote. The CEO and Chairman of high-profile electric vehicle startup Tesla Motors, Elon Musk, and the CEO of electric vehicle infrastructure startup Better Place, Shai Agassi, both had long [...]

  5. Web Firms Step Into Green Shadow in the Valley | Current Capital Wednesday, November 12, 2008

    [...] for his keynote. The CEO and Chairman of high-profile electric vehicle startup Tesla Motors, Elon Musk, and the CEO of electric vehicle infrastructure startup Better Place, Shai Agassi, both had [...]

  6. Science Grads Swap Finance Jobs for Cleantech « Earth2Tech Tuesday, November 25, 2008

    [...] am in Carbon Markets,Misc,Startups The economic downturn may be gutting the ethanol markets and souring term sheets, but here’s one silver lining: Math and science grads are turning to engineering instead of [...]

  7. Science Grads Swap Finance Jobs for Cleantech Tuesday, November 25, 2008

    [...] economic downturn may be gutting the ethanol markets and souring term sheets, but here’s one silver lining: Math and science grads are turning to engineering instead of [...]

  8. Science Grads Swap Finance Jobs for Cleantech | Alternative Energy News Tuesday, November 25, 2008

    [...] Swap Finance Jobs for Cleantech The economic downturn may be gutting the ethanol markets and souring term sheets, but here’s one silver lining: Math and science grads are turning to engineering instead of [...]

  9. How Risky Is Tesla’s Bet on a DOE Loan Guarantee? « Earth2Tech Wednesday, December 3, 2008

    [...] short answer is that Tesla — which has already raised some $185 million, plus deposits from at least 600 would-be Roadster owners — has reason to be confident in the [...]

Comments have been disabled for this post