Tesla could run out of cash before the end of the year - here's how Elon Musk could change that

This move seems extremely likely at this point.

Tesla has access to about $2 billion via its credit lines, but tapping them fully wouldn't provide enough funds to maintain the $1-billion cushion the company likes to have on the balance sheet.

Tesla hasn't experienced too much difficulty expanding its lines in the past, and if the company is right about rising revenue from more Model 3 sales, then it ought to be able to service those lines of credit.

However, this move would undermine profitability, although in fairness many investors don't expect Tesla to post steady profits for several years.

What's SolarCity worth?

Tesla merged with the struggling solar-panel company in late 2016, in a deal valued at about $2 billion, but with a big debt load attached.

That debt would discount the value of a future sell-off, which would probably look like a fire sale and a sign that Tesla is desperate. But on the plus side, such a move would improve Tesla's balance sheet greatly and relieve the company of future debt payments.

Tesla could also spin SolarCity off and put into bankruptcy, but it might be difficult to make that work because Tesla would then most likely end up financing the restructuring. If Tesla shuttered SolarCity, it would have to account for the loss, and that would be a major financial hit.

As for what SolarCity is worth, analysts have suggested that it's currently zero, as it's making a negligible contribution to Tesla's bottom line, although the business appears to be growing.

This strikes me as the most unlikely strategy, but hey, you never know! I wouldn't expect General Motors or Ford to join with Tesla, but somebody like Fiat Chrysler Automobiles might.

FCA, under its outgoing CEO Sergio Marchionne, has been trying to merge with another automaker for several years. Marchionne hasn't been able to pull off a tie-up — he was rebuffed by GM — but the company, while posting strong US sales of SUVs and pickups, is lagging the competition when it comes to electric vehicles and self-driving technology.

With Tesla, it has also seen its stock perform well for the past 12 months — up 125%. Tesla has swooned of late, but prior to that, it was threatening $400 per share in 2017.

I don't think it would be possible for either automaker to acquire the other without substantial leverage, but a partnership or alliance, with each company acquiring some of the other's shares, might make sense. Technically, my sense is that smaller-by-market-cap FCA ($30 billion) would effectively take over Tesla and add it as a division.

FCA might pause at contributing its cash — around $18 billion — to Tesla's seemingly insatiable needs, especially because Marchionne is also determined to eliminate FCA debt before he rides off into the sunset in 2019.

Ford did this when it avoided bailouts and bankruptcy before the financial crisis. Then-CEO Alan Mulally mortgaged the Blue Oval and stockpiled $24 billion, which was enough to ride out the Great Recession.

Tesla could throw a similar Hail Mary pass, assuming that borrowing against everything would pay off as Model 3 production rapidly increases and sales bring in lots and lots of fresh cash.

On the flipside, if the plan doesn't come together, Tesla would be in big trouble.

Musk has no shortage of friends and allies in Silicon Valley who are drowning in cash and don't want Tesla to fail. Let's say Tesla needs $3 billion to make it through 2018.

Google co-founder Larry Page is personally worth almost $50 billion. A few billion for the guy who has let Musk crash at his house would be chump change.

He's also already said Musk should get his money, to pursue massive dreams like going to Mars. And Page and Google were once rumored to be prepared to buy Tesla, back when the carmaker was struggling in 2013.