Earlier this week, in a filing with the US Securities and Exchange Commission, Tesla said that it plans to raise funds through issuance of shares and debt. To make this payment, the company will be raising funds from various sources that it has used to fund its operations in the past, such as equity offerings or further bond sales.
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Tesla Motors Inc.is postponing the release of details on updates to its Autopilot feature until the end of the weekend, CEO Elon Musk tweeted Thursday.
Today’s losses symbolize how little trust both investors and analysts have in Musk and his master plan to combine both companies into an alternative-energy powerhouse.
Improvements to Autopilot would be welcome news for Tesla enthusiasts, and Musk tweeted on Wednesday that he was about to announce them. USA regulators are probing a May 7 fatality in Florida in which a driver using Tesla’s Autopilot system crashed into a truck. If the proposed acquisition by Tesla doesn’t come to pass, and SolarCity burns out, Musk will take a relatively minor hit.
The document also disclosed that Mr Musk discussed a potential Tesla-SolarCity merger in February with SolarCity’s CEO, Lyndon Rive, who is also Mr Musk’s cousin. On May 31, the Tesla board changed course and chose to pursue the merger.
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Tesla managed to close the last quarter with around $3.25 billion in cash. The company’s cash stockpile plunged to $146 million at the end of June, down from $489 million previous year. To get its production line ready for the much-anticipated $35,000 Model 3 by next year, the company will need to spend an estimated $1.75 billion at the Reno, Nevada facility. Lazard, an investment bank, did some analysis to find out the value and advised SolarCity accordingly, but later it was found that there was an error in the analysis, due to which the value of the solar energy company was discounted by $400 million. “The third quarter will be our last chance to show investors that Tesla can be at least slightly positive cash flow and profitable before the Model 3 reaches full production”, Musk said in the Monday email, which Tesla confirmed as authentic to Bloomberg.
