Joshua Brown, a Tesla Model S driver, was killed while driving the vehicle on an Autopilot mode, as the feature was not able to detect the trolley against daylight.
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Musk is CEO of Tesla, and also serves as chairman SolarCity.
In a filing Wednesday with the Securities and Exchange Commission, Tesla disclosed it will need to go to the debt or equity markets to pay for its proposed $2.6 billion purchase of SolarCity.
Elon Musk has said that USA carmaker Tesla will outline upgrades to software for its Autopilot system on Thursday, in changes which could be applied within the next few weeks. In the past year, Tesla shares are down 18.5 percent and SolarCity shares have fallen 60.4 percent. Critics have chided the Musk and Tesla officials for not shutting down the function in light of the fatal crash in May, but Musk steadfastly maintained that the system was not being used properly and that the company would continue with its development program.
After becoming aware of the mistake on August 18, more than two weeks after the signing of the deal, Lazard realized the accurate valuation range was $18.75 to $37.75 per share. The company already raised $1.5 billion in May to provide funding needed for production of the company’s mass market EV: the Model Three.
Tesla’s cash situation has taken on additional urgency with the US$2.6 billion SolarCity deal announced on August 1.
The filing also revealed that in recent weeks, 15 institutional investors passed on either acquiring SolarCity or injecting equity into it. The $5 billion battery facility is expected to pave the way for Tesla to produce affordable cars, as it will help lower the cost of battery acquisition. To start with, SolarCity has recorded a 65% drop in its cash position in the last one year.
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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”. 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.
