In the filing, TSLA disclosed that it might raise cash through the sale of ordinary shares or debt offerings.
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As Tesla needs to raise additional cash, investors are thrashing the stock as it trades below 4% during the intra-day trading today.
The Wall Street Journal noted that Tesla said in a regulatory filing on Wednesday it will raise additional capital by the end of the year. The company will also invest in equipment for its battery producing Gigafactory in Nevada as well as building new retail locations and charging stations around the country. The money will also be used to finance the acquisition of its sister company SolarCity.
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Richard Hennessy is the instagram user that posted the photo of what could be the Tesla Model 3 interior as he spotted it being driven around the American Company’s factory in Fremont California. What’s know right now is that more and more people are anticipating the Model 3 and that Tesla is said to be ready for this demand as they expect to manufacture 500,000 units per year.
Before the bond deal was announced, SolarCity’s advisers had asked Tesla to “consider providing SolarCity with short-term financing” amid the pending merger deal, according to Wednesday’s filing.
Palo Alto-based Tesla said those payments to the bondholders would be made by the end of the third quarter, which is due to end on September 30, the SEC filing shows.
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The company wrote in SEC filing earlier this month: “During the third quarter, we will be using substantial amounts of cash in connection with conversions of our 2018 Notes and we could pursue other actions to reduce our outstanding balance of convertible notes, which could require further outlays of cash”. Over the same one-year period, SolarCity lost $94.9 million on $537.7 million in revenue. The main reason behind Tesla’s need for money is that it doesn’t have a strong enough cash position to support the proposed merger.
