Tesla experienced another fatality to
hang on its semi-autonomous driving system. The company just revealed that its
Autopilot feature was turned on when a Model X SUV slammed into a concrete
highway lane divider and burst into flames on the morning of Friday, March 23.
The driver, Wei Huang, died shortly afterwards at the hospital. The company shares declined 22 percent in
March after the concerns or the fatal car crash in California. Tesla’s 5.3
percent bond, issued last August and maturing in 2025 also fell 4 percent to
87.25 cents Wednesday with a yield of 7.6 percent, according to FactSet. The
Bond’s price declined 8 percent this month.
Telsa had $3.4 billion in cash or cash equivalents at year
end 2017. The company lost nearly $2 billion last year and burned about $3.4
billion in cash after capital investments. Given the company’s cash rate and
how it has $230 million of debt due in Nov. 2018 and another $920 million in
March 2019 the company believes they will raise new capital soon.
"The losses and heavy capital spending are
expected to continue this year. Over the next twelve months Tesla also has $1.2
billion in convertible bonds coming due," Fred Hickey, editor of High Tech
Strategist, wrote in an email Wednesday. "In other words, Tesla has an
enormous need for more cash and yet some are beginning to lose confidence in
the company.”
Wow that is crazy. I didn't know that Tesla had problems! If this keeps happening they won't have brand/company at all.
ReplyDeleteI didn't realize that Tesla's stock was decreasing this much but now know why after reading about another fatal crash.
ReplyDeleteSeeing news like this should make us all wonder whether we are going in the right direction; should we really be releasing this technology to the public before all these fatal bugs are figured out?
ReplyDeleteThis is tragic news in every way. I do feel that it is important that we keep being innovative and keep trying to enhance life using technology. I know that Elon Musk has had many business/financial problems in the past and has been bankrupt before, so he is a determined guy who will continue to perfect his designs.
ReplyDelete