Home > Around Greater Long Beach, Downey > ELON MUSK IS … BROKE? COURT FILINGS SAY YES

ELON MUSK IS … BROKE? COURT FILINGS SAY YES

ELON MUSK: BUSTED! (Photo: Brian Solis, http://www.briansolis.com and bub.blicio.us.)

BY ERIC PIERCE / THE DOWNEY PATRIOT

Elon Musk is broke and has been living off personal loans since October 2009, this according to court filings reviewed by online magazine Venture Beat.

“About four months ago, I ran out of cash,” Musk wrote in a court filing dated Feb. 23 and reviewed by the website.

More from the story:

According to the filing — part of his pending divorce case from sci-fi novelist Justine Musk — Elon Musk has been living off personal loans from friends since October 2009 and spending $200,000 a month while making far less.

Tesla, likewise, is dealing with its cash flow problems by borrowing money from a friendly source — the United States government, which has eagerly backed cleantech startups through a Department of Energy loan program. READ MORE

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  1. June 2, 2010 at 4:39 pm

    His troubles go deeper than that. Tesla’s main funding source is the Department of Energy but they’re not allowed to use that $456 million grant to produce cars, so they need independent fundraising for productions (without which they can’t generate revenue and pay back the government, or customers who have already placed cash deposits for a car that doesn’t yet exist). The government money isn’t even available until Tesla independently raises a certain amount of hard cash. Meanwhile, Tesla has to come up with $42 million to buy the NUMMI plant and they don’t get that $50 million from Toyota until they go public by the December 31 deadline, and that’s not for certain yet. I don’t know why people have overlooked all of these details, they’re really easy to find online and they shine a very unflattering light on Tesla. People see what they want to see, I guess.

  2. June 2, 2010 at 7:45 pm

    Good work, Ryan, and aint it the truth.

  1. June 8, 2010 at 2:02 pm
  2. June 23, 2010 at 9:55 am

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