GLOBAL MARKETS: Tesla spending spree
The company that Elon Musk built to usher in the electric-car future might not have enough cash to make it through the calendar year
The company that Elon Musk built to usher in the electric-car future might not have enough cash to make it through the calendar year.
The firm has again fallen short of its production targets for the Model 3 sedan, another person has died in a crash involving its assisted-driving feature and Musk has entered into a dispute with safety regulators. Tesla’s once high-flying stock has dropped 24% from its September peak.
No-one has raised or spent money as Musk has. Tesla burns through more than US$6,500 every minute, according to data compiled by Bloomberg. It is going through money so fast that, without more financing, it could run out of cash this year.
UK rate hike unlikely
The worst UK economic growth report since 2012 may have put the final nail in the coffin for a Bank of England interest rate increase in May. Traders slashed their bets to a one-in-four chance of a move this month, from 50-50 odds last week and a near certainty in March. The pound tumbled to a seven-week low, while 10-year gilts rallied the most in more than a month.