rtmark
LearnBonds.com

Loss Making Tesla Motors Inc (TSLA) Defaulting On Bills In Norway

Tesla Motors Inc (TSLA) Model X Norway

Tesla Motors Inc may be going through a rough phase in Norway – a country friendly to EVs. The EV firm, which has been unprofitable to date, might be finding it difficult to pay its bills in the country, claims a report from Norwegian media .

Tesla Motors Inc (TSLA) Model X Norway

 Is Tesla really facing issues in paying bills?

In Norway, the firm has not paid bills totaling NOK 2 million ($245,000), says a report from Bilnytt.no – a Norwegian publication. As per the report, the US firm has not paid any bills, leading to an extremely poor credit rating for the US firm.

Lately, the loss-making automaker has been facing difficulties in paying bills. Tesla has received 240 payment demands from the local creditors, the report says. This is the reason, a credit-rating firm gave its worst rating of ‘C’ to the US firm. Also, the firm warned the suppliers against providing additional credits to the electric carmaker.

The U.S.-based electric carmaker has still not paid large number of employment agencies, the road tolls that the electric vehicle owners usually contest (as they are tax-exempt) and some utilities. The unpaid amount is significant and way more than owed by other car dealers in the country even after waving the toll claims.

Sandvold Roland – Tesla Norway Communication Chief – was not aware of Tesla’s payment history issues. He did admit some issues related to the supplier’s payment system, and said the payments have been apparently shifted to another system. This year, the sales have been flat, but no financial details available.

In 2013, the electric car firm faced similar issue, as per another publication Dagen Næringsliv (DN). The report claims it happened with 12 payment amounting to NOK 170,000. At that time, Tesla Motors Inc blamed the aggressive growth plans and rigid payment system in which the Norwegian bills had to be paid via the British office.

Musk hints of fourth-gen car in Norway

What’s noteworthy is, these reports comes a week after CEO –Elon Musk – visited Oslo for a conference on “Future Transport Solution.” In the conference, Musk hinted of Tesla’s plan to introduce a fourth –gen smaller and affordable car and also a mass-market public transport. Norwegian officials, who have spent NOK 7 million on the electric vehicles in the last few years (by Tesla), and have introduced favorable financial and tax incentives for the electric cars, were applauded by Musk as well.

Tesla’s fourth model is rumored to be cheaper than the $35,000 Model 3. At last week’s conference, Musk said, “There will be future cars that are even more affordable, down the road.” In the same conference, he hinted his super-secret plans for a new type of bus-like vehicle that could help in decreasing the urban traffic congestion.

Talking about the car, Musk said the car will be designed in a way that roughly half the people will be able to afford it. At this point, the new car, which the internet rapidly codenamed Model 4, is likely nothing more than a sketch in a Tesla design studio. The automaker with around 400,000 pre-orders on the books for the Model 3 has its hand quite full at the moment.

Do not confuse the fourth-gen car that Musk is referring to, with Model Y. The car is probably the next vehicle by the EV firm. The Model Y would be a third-gen Tesla product as it will be built on the same platform as the Model 3. The electric carmaker has been silent about the car since October of 2015.

Tesla Motors Inc CEO may be thinking ahead, but he has not forgotten about the Model 3. Referring to the Model 3, Musk said he is super excited about being able to produce a car that most people can afford.

All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Avatar

Aman is MBA (Finance) with an experience on both marketing and Finance side. He has work as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, playing PC games and cricket.

X

Leading Social Trading Platform with 0% Commission

Leading Social Trading Platform with 0% Commission

Leading Social Trading Platform with 0% Commission

TRADE WITH ETORO

75% of investors lose money when trading CFDs.

Leading Social Trading Platform with 0% Commission
TRADE WITH ETORO

75% of investors lose money when trading CFDs.

HTML Snippets Powered By : XYZScripts.com