Tesla Motors Inc closed down -4.79 points or -2.18% at $215.2 with 32,66,334 shares getting traded on Monday.
Advertisement
Tesla is positioning itself to be the first to come out with a consumer-friendly electric auto with a range that could finally incentivize people to let go of combustion engines.
Palo Alto-based Tesla plunged 5.3 percent in Thursday’s trading, while San Mateo-based SolarCity nose-dived 9.1 percent. Tesla also is seeking funds because it has to pay $422 million to bondholders in the current quarter, according to the filing.
Electric vehicle maker Tesla could be planning to limit its “autopilot” function for drivers who continually ignore the safety warnings.
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.
But, we’re still a few years away from seeing Tesla really disrupt the electric vehicle space, granted everything goes according to Musk’s plan.
Separately, SolarCity appears to be going through cash at a rapid pace.
All the cash problems resulted in Tesla cutting its bid even though SolarCity was trying to squeeze even more out of it. The cash held by the company has declined to $146 million by June 30, compared with $421 million by the end of the same period previous year.
“Neither company is profitable”, Enderle said. That’s quite a drop from the $382.5 million in cash the company had at the end of December. The rapid cash burn is not only weakening Tesla’s liquidity position, which was $3.25 billion at the end of the June quarter, but also prolonging its road to profitability. To start with, SolarCity has recorded a 65% drop in its cash position in the last one year.
Those are some hefty prices, but Musk said on a call with journalists that starting with Tesla’s high-end cars was deliberate. Some of the proceeds of the capital raising will also be used to help in completing the construction of Tesla Motors’ massive battery factory in Nevada.
The combination of the two firms could create some green-tech synergies, Enderle said.
Advertisement
That will give them the benefits of what is, today, by far the most pervasive network of DC fast-charging stations to make long road trips in electric cars possible. And as can be expected, this came as great news to many, especially those who’ve been interested in getting an electric vehicle for themselves, but were turned off by the price until now.
