By Jason Sattler

Tesla Motors has lined up $40 million in convertible debt financing to accelerate production of its all-electric Roadster sports car, a move that boosts a cash balance that had dwindled to just $9 million.

The Silicon Valley startup says it received convertible debt commitments from most of its current major investors. The infusion of cash will help Tesla weather rough economic times that have prompted it to announce layoffsand delay production of a forthcoming four-door sedan codenamed Model S. Beyond ramping up production of the Roadster, Tesla will use the cash to expand its electric-drivetrain supply business and continue developing the sedan, which is slated for production in 2011.

"Forty million is significantly more than we need," company CEO Elon Musk said in a statement released today. "However, the board, investors and I felt it was important to have significant cash reserves."

The infusion of cash comes not a moment too soon for a company that, like everyone else in the auto industry, is being hit hard by the economic meltdown.

When an expected $100 million in financing fell through last month, Tesla announced it would lay off an undisclosed number of employees, delay Model S and shutter its Detroit office. The announcement proved that even the hottest startup in Silicon Valley is not immune to a recession, and former employees started muttering about Tesla's imminent death. Tesla has delivered no more than 50 Roadsters since production started in March despite having received more than 1,200 orders. Some naysayers wonder if Tesla will make good on the deliveries.

Musk answered that question Friday when he announced a new round of funding and told

Reuters the company will fulfill every Roadster even if the money needed to do so must come from his pocket. "I am personally standing behind delivering the cars and the deposits for the company," Musk said. He could do it, too — the South African native founded and sold two Internet companies — Zip2 and

PayPal. With a reported fortune somewhere around $200 million, Musk could personally afford around 1,835 Roadsters at $109,000 a pop. Still, these are tough times for the auto industry, and Tesla is no exception. Musk has made it clear to Uncle Sam that he'll be in line with the Big Three looking for guaranteed loans to stay afloat. But you've gotta wonder if Musk's deep pockets, $49 million in cash and a federal loan will be enough. Musk is betting on yes. If things go his way, the 2009 Roadster could be the first in a long line of classic battery-powered luxury vehicles.

Or Tesla could end up just another victim of circumstance in the Silicon Valley dead pool. Then the completed

Roadsters will just be collectibles, "man and his dream" relics of a car company whose vision and prices might've been a little too green to survive a global economic meltdown.

Photo courtesy Tesla Motors