Tesla could be forced to mortgage his Gigafactory for lack of cash

This is a blow for Tesla and the founder of Elon Musk. On Tuesday, March 27, rating agency Moody’s downgraded its ratings on the automaker and on its debt. To this, it added negative perspectives, meaning that these assessments could further deteriorate. The California company is sanctioned for its production problems and the risk of a lack of liquidity.

according to the Wall Street JournalTesla has accumulated a $ 10 billion debt. And Elon Musk’s company will see two consecutive debt repayment installments arrive: one of $ 230 million in November and the other of $ 920 million in March 2019. This debt could widen further for allow Tesla to refinance bonds and recover cash to keep pace with its major expenses. In 2017, the company paid $ 3.4 billion.

Production difficulties on the Model 3

The Wall Street Journal Expected an Unwanted, But Probable, Settlement in the Face of These Difficulties: To Recover Cash, Tesla May Have to Mortgage his famous “Gigafactory”, the largest electric battery factory in the world.

Tesla is expected to publish its April point on the production and deliveries of its vehicles in the first quarter. Here, the rating agency fears disappointments on the Model 3 whose production was revised down in February. It must be said that the ambitions of the manufacturer face difficulties. By wanting to automate all stages of production, the company has problems, especially on the assembly stage, more complex to manage by robots.