Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Tesla's Elon Musk runs out of cash

By Blake Ellis, staff reporter


NEW YORK (CNNMoney.com) -- Silicon Valley icon and Tesla Motors CEO Elon Musk's bank account has run dry and he's been living off his friends' money, according to court documents.

"About four months ago, I ran out of cash," Musk wrote in a court filing with the Superior Court of Los Angeles on Feb. 23, released by VentureBeat.com on Friday. "I had to obtain emergency loans from personal friends. These loans are the exclusive source of cash I have. If I did not take these loans, I would have no liquid assets left."

Even with the help of borrowed money, Musk said he had less than $650,000 in liquid assets.

The documents were part of Musk's divorce trial and showed that the electric car entrepreneur was spending $200,000 each month while bringing in only $8,255 in personal income.

The $200,000 in monthly spending has gone toward living expenses and supporting his wife and children, according to the filing.

In addition, Musk said that he never received the phantom interest income amounting to more than $1 million on a loan he made to Tesla.

"I did not and could not actually receive this money from Tesla," he wrote. "It was converted to equity. This will cause me to pay taxes even though I didn't receive actual cash income, further straining my cash resources."

Besides Musk's contributions, Tesla Motor Co. is also being backed up financially by Toyota. Last week, the Japanese automaker announced that it will invest $50 million in the electric car maker, while Tesla said it plans to purchase one of Toyota's plants, which had been operated as a joint venture between General Motors and Toyota.

But Tesla isn't guaranteed Toyota's help until it completes an initial public offering, and the fact that Tesla is spending $42 million on the Fremont plant, or Nummi, may not bode well for the electric car maker.

Musk and Tesla were not immediately available to comment.

CNNMoney's Ben Rooney contributed to this report. To top of page

Find Your Next Car
Index Last Change % Change
Dow 17,891.16 117.52 0.66%
Nasdaq 4,817.59 42.24 0.88%
S&P 500 2,081.43 16.13 0.78%
Treasuries 1.86 0.05 2.53%
Data as of 5:45am ET
Company Price Change % Change
Bank of America Corp... 14.77 0.21 1.44%
Ford Motor Co 13.62 0.06 0.44%
Apple Inc 93.64 -0.10 -0.11%
Freeport-McMoRan Inc... 13.55 -0.45 -3.21%
Frontier Communicati... 5.44 -0.12 -2.16%
Data as of May 2
Sponsors

Sections

Johnson & Johnson has suffered a second costly court defeat over claims its talcum powder caused cancer, and that may be only the beginning. More

It's getting worse for Puerto Rico. The island defaulted on $422 million in bonds related to its Government Development Bank on Monday. Congress is currently debating an aid package for the island. More

Tech leaders Apple, Alphabet and Microsoft all disappointed Wall Street with their latest earnings reports. And that's dragged the Nasdaq back near correction territory. Is this the beginning of another huge pullback or an overreaction? More

Visa says new software will allow consumers to check out with chip cards as fast as swiping a card with magnetic strip. More