The CEO leased the jet from himself with company funds? How is that even legal? How can the investors expect to get anything from this company when the CEO is so blatantly sucking the company dry?
this post was submitted on 02 Apr 2024
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It's probably legal, but very dumb thing to do if you want to keep investors on board. It should be up to the investors to demand that money back.
They're a startup that doesn't yet have a vehicle in full scale production, so any expense will look big in relation to their revenue.
Having said that, a mil and a half for jet rental is pretty bad.
If it’s “only” a million and a half that’s probably not a tremendous amount for a vehicle manufacturer, but it also seems like with no real production yet it might’ve been better to mostly fly commercial and save the charters for when the commercial schedules were really bad.
And when they can't find the next investor, they'll go bankrupt. Oops! Now everybody loses their jobs because management wanted to play at the high rollers table with borrowed money