Tesla Motors Is Losing $4,000 On Every Purchased Model S

Tesla Model S Loses 4000 dollars per sale

The Tesla Model S is increasing sales year-over-year but that doesn’t mean the company is reaping massive profits from its growing luxury vehicle output. According to Business Insider, the company is losing $4,000 per sedan or $359 million last quarter. CEO Elon Musk has said the company is examining the possibility of raising more capital, possibly through a stock sale.

The company is hoping to jump from one low-volume vehicle to several models by Q1 2016. Musk is also expanding a venture to manufacture electric-power-storage systems.

On Thursday Tesla’s shares dipped by 9% and then fell by another 2% on Friday. Tesla had just $1.15 billion on hand as of June 30, compared to  2.67 billion a year earlier.

At current market rates, a vehicle manufacturer easily spends $1 billion to bring a new car to market. While Tesla has $1 billion on hand, competitors such as General Motors and Ford will typically have $20 to $30 billion in cash reserves.

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General Motors sells 9 million vehicles per year, while Musk and company are aiming for a high of 55,000 vehicles in 2015.

In the second quarter of 2015 Tesla delivered 11,532 cars at an operating loss of $47 million.

The company is planning to use $1.5 billion in capital spending this year to launch the Tesla Model X, a high-powered, battery-operated sport-utility vehicle.