Tesla Gets $40 Million Lifeline

Tesla Motors got its lifeline — $40 million yesterday, the NYT reports. The company’s investors (who include Larry Page, Sergey Brin, CEO Elon Musk, and a few VC firms) ponied up the dough in the form of convertible debt. Tesla didn’t specify which investors were involved.

The company said last week that it needed the money to become cash flow positive, and that it was going to get $20 million as early as this week. Earlier this year, Tesla was working on raising a $100 million round, but it fell through, so the company laid off a quarter of its workers and delayed work on the next car – the Model S.

Telsa was also struggling to make its deliveries – 1,200 people ordered the $109,000 Roadsters, but only 60 had been delivered. CEO Elon Musk said that he would personally guarantee the deliveries and deposits.

See Also:
Tesla Motors Getting Some Cash

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