New
York Times: Yesterday Tesla Motors, a California-based
maker of electric cars, announced its plan to raise additional
cash by selling 5 million shares of its stock. The company has
already received a $465 million loan from the federal
government and $133.4 million in reservation deposits from
customers. Because the company is consuming cash at a rapid
rate and is four to five months behind in producing its new
Model S sedan, it appears to be "entering a critical phase,"
writes Peter Eavis for the
New York Times. Tesla's financial woes may also add to
the criticism of President Obama's green-energy loan program,
which came under fire last year when solar-panel manufacturer
Solyndra was forced to
declare
bankruptcy.
