Another item that seems to be going against Tesla is the movement of SolarCity shares, something I recently discussed. In the meantime, in preparation for the low-cost Tesla Model 3 – priced at $35,000 before incentives – the electric auto maker is retooling its factory in Fremont, California.
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Also on Wednesday, Tesla revealed in an SEC filing that it would need to raise more capital to complete its $2.4 billion purchase of SolarCity, a company Musk funded and of which he is chairman.
Facing a severe cash crunch, Tesla plans to raise additional money this year to help fund development and production of its new Model 3 sedan and build out a giant battery factory, the company said on Wednesday.
What’s more, the driver will not be able to restart the autopilot system until the auto has come to a halt.
Tesla Motors Inc (NASDAQ:TSLA) is on the extreme edge of achieving a good Q3, but it requires making and delivering every auto they possibly can, and at the same time, cutting any cost that is not important, for the upcoming 4.5 weeks at least. 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.
Tesla also expects to issue 15 million shares to pay out SolarCity shareholders, if approved, as part of the merger.
While these financial decisions are not that important to auto enthusiasts, it is relevant to note that the automaker had previously announced a plan that will include spending $1.75 billion in the second half of this year.
Shortly after powering up its Model S with a larger battery-an upgrade that turned the electric sedan into the fastest auto now in production-Tesla Motors Inc. was given the regulatory green light to speed forward with its planned acquisition of rooftop solar company SolarCity Corp.
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That launch will tell us a lot about how the subsequent phases of Tesla’s plan will – or won’t – unfold. And we think its stock price has almost unlimited room to run for early, in-the-know investors! The Motley Fool owns shares of and recommends SolarCity and Tesla Motors.
