Tesla shares fell as the company's cash burn deepened concerns that it would need to raise more capital to make Model 3 sedan. Roselle Chen reports.
Tesla's shares plunging on Thursday. Investors are worried the electric car maker is burning through cash too fast and will need to raise more capital. Tesla needs that money as it's pushing ahead with the production of its mass-market Model 3 sedan. Kelley Blue Book's Rebecca Lindland: (SOUNDBITE) REBECCA LINDLAND, SENIOR DIRECTOR, EXECUTIVE ANALYST, KELLEY BLUE BOOK (ENGLISH) SAYING: "They are in, very much in, a development mode, if you will, where they're just spending a lot of cash, and they're not taking a lot of it in. And it's a very legitimate concern, you know. This is something that definitely needs to be paid attention to. The challenge is that you have somebody like Elon Musk, who is very free-range thinking. And we need people like him, but free-range thinking is really expensive too." Tesla reported earnings after the bell on Wednesday posting wider-than-expected fourth-quarter loss, despite sales coming in above forecasts.