Tesla's perilous road ahead

Tesla is now entering a "make-or-break period"

Elon Musk.
(Image credit: AP Photo/Paul Sakuma)

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A year ago, Tesla looked "destined to revolutionize the auto industry," said Neal Boudette at The New York Times. The Silicon Valley automaker's electric Model S sedan was the darling of luxury-car buyers, and its "affordable" Model 3 was set to bring "emission-free driving to the masses." Its self-driving Autopilot technology appeared more advanced than the competition's. And CEO Elon Musk was touted as a tireless visionary, propelling Tesla's market value past that of Ford and General Motors. "What a rough ride it's been since then." The Model 3's rollout has been "mired in glitches and delays," and Tesla has hemorrhaged money quarter after quarter. Last month brought a pileup of bad news, with a recall of 123,000 Model S sedans and the fatal crash of a Tesla in Autopilot mode. Suddenly, the automaker is entering a "make-or-break period," said Tim Higgins at The Wall Street Journal. Sales have slumped, and Moody's has downgraded the company's credit rating over concerns that it's burning through $2 billion in cash a year. Analysts are now questioning whether Tesla has enough money to make it through the end of 2018.

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