The 2020 Tesla Roadster has already made quite the statement with its claimed zero-to-60 mph time of 1.9 seconds.

But never one to remain quietly idle after a major announcement, Tesla CEO Elon Musk has taken to Twitter to confirm those performance figures are for the base model and that a “special option package” will be available that takes the Roadster to the next level. It may be hard to believe the Roadster can get any faster, but that’s exactly what Musk is claiming.

In an on-air interview Friday with CNBC’s Power Lunch, former General Motors executive Bob Lutz claimed American electric vehicle maker Tesla is “going out of business.”

Following Tesla’s unveiling of its electric semi and second-generation Roadster last week, Lutz went on CNBC and claimed the event was intended as a distraction from the manufacturing problems it’s experiencing with the Model 3. The automaker has been struggling to ramp-up production of the $35,000 sedan and failed to meet its third-quarter delivery targets, and Lutz thinks the semi event was a way to drum up hype and raise capital amid hard times.

“The company, folks, is going out of business,” Lutz said. At this rate they’ll never get to 2019.”

“They are hemorrhaging cash. They’re going to have to go for another capital raise,” he added.

Lutz is an outspoken and harsh critic of Tesla, but his statements here are at least partly being driven by something other than unfounded disdain. Establishment brands like Volkswagen, Mercedes-Benz and General Motors are better versed in vehicle making and will have a myriad of Tesla-fighting products on hand soon, which could take a bit out of its sales. This is will be especially true if it can’t work out the kinks in its production line.

“There is no secret sauce in Tesla,” Lutz said, referencing other automaker’s competing battery electric tech. “They use the same lithium-ion batteries as everybody else.”

Luckily for Tesla, it has enough of a jump on the competition for there to be a large gap between the Model 3 and the arrival of the next worthy competing product. Let’s just hope Musk can deliver on his promise of building 5,000 Model 3s a week by the end of the first-quarter of 2018.

NEW YORK (BLOOMBERG) - Elon Musk said last week that Tesla Inc is designing a new sports car that could go from zero to 60 mph in 1.9 seconds. Not bad, but here's a speed number that investors might want to focus on instead: Over the past 12 months, the electric-car maker has been burning money at a clip of about US$8,000 a minute (or US$480,000 an hour), Bloomberg data show.

At this pace, the company is on track to exhaust its current cash pile on Monday, Aug 6. (At 2:17am New York time, if you really want to be precise.) To be fair, few Tesla watchers expect the cash burn to continue at quite such a breakneck pace, and the company itself says it's ramping up output of its all-important Model 3, which will bring money in the door. Investors don't seem concerned. Tesla shares rose almost 3 per cent to US$317.81 on Tuesday, giving it a market capitalization of US$53 billion. Ford Motor is worth US$48 billion.

But still, its need for fresh cash came into high relief last week when Musk unveiled his latest plan to raise funds. He's asking customers to pay him upfront to order vehicles that may not be delivered for years.

The Founders Series Roadster will cost buyers a US$250,000 down payment even though it's not coming for more than two years. Orders of those cars are capped at 1,000, meaning they alone could generate US$250 million. Tesla is charging a total of US$50,000 for reservations of the regular Roadster. Companies can also pre-order electric Semi trucks for US$5,000, though they don't go into production until 2019.

But all this is a pittance compared with Tesla's financial needs. It's blowing through more than US$1 billion a quarter thanks to massive investment in making the Model 3, a US$35,000 car that's looking less likely to generate a return anytime soon.

"Whether they can last another 10 months or a year, he needs money, and quickly," said Kevin Tynan, senior analyst with Bloomberg Intelligence, who estimates Tesla will be required to raise at least US$2 billion in fresh capital by mid-2018.

AMPLE MONEY

Tesla has said it has ample money to meet its target of producing 5,000 Model 3 sedans by the end of March. After that date, the company expects to "generate significant cash flows from operating activities," Tesla said in a Nov 1 letter to shareholders. Tesla's capital expenditures should also decline as the company pays off its expenses related to the Model 3, CFO Deepak Ahuja said on a conference call the same day.

Dave Arnold, a spokesman for Palo Alto-based Tesla, declined to elaborate.

Tesla's options are limited.

It's already drawing down on more of its revolving credit facilities than ever before.And while the bond market is a possible route, it may not be especially welcoming right now. Investors who bought US$1.8 billion of debt three months ago remain under water even after the notes recovered a bit from a low of 93.88 cents on the dollar early this month.

That may leave selling equity as the most viable option. But that, of course, would dilute existing shareholders, and Musk, at 20 per cent, is the biggest.

"So long as the company is burning cash, it will remain dependent on the patience and enthusiasm of public markets or the deep pockets of a white knight," said Christian Hoffmann, a money manager at Thornburg Investment Management.

In an on-air interview Friday with CNBC’s Power Lunch, former General Motors executive Bob Lutz claimed American electric vehicle maker Tesla is “going out of business.”
“The company, folks, is going out of business,” Lutz said. At this rate they’ll never get to 2019.”