Admittedly, at LOLFed we’re predisposed to like geeks, and since we like fast cars, too, we really would like to be reporting that Tesla is doing well and its founder Elon Musk is on top of the world, but that is not the case. Sounds like he’s blown through his money and the government’s, too:
Tesla Motors CEO Elon Musk seems to have it all… The one thing he doesn’t have, by his own admission, is money.
“About four months ago, I ran out of cash,” he wrote in a court filing dated Feb. 23, reviewed by VentureBeat. That’s a problem not just for him but for Tesla, where he is the lead investor and chief product architect, as well as CEO. Musk’s willingness to funnel his own cash into Tesla has for years sustained the faith of fellow investors and reassured would-be car buyers in 2008 when the company’s finances were in perilous shape.
The company has a $465 million loan from the Department of Energy, but it’s been heavily dependent on Musk, as well. However, it’s recently started kicking more compensation his way, reimbursing his private jet flights and issuing him 6.7 million stock options as compensation. Musk is in the middle of an ugly divorce, too, with his wife charging him with “breach of fiduciary duty” (golddiggers take note, you can marry a risky venture capitalist and still act surprised if at some point he can’t scrape enough cash together for a McDonald’s Value Meal) as grounds for tearing up the pre-nup and going after his assets.
VentureBeat speculates that the company will go for an IPO as the tidiest way for Musk to get back on his feet and pay off his soon to be ex-wife. Would you be in?
Video I was watching about Tesla’s govt loan this morning: