“We identified an opportunity to improve the owner experience and affordability by working directly with insurance companies, taking the time to educate them”, a spokesperson told Autocar UK.
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Separately, Tesla plans to raise more money this year, either through an equity or debt offering, as it prepares to launch the $35,000 Model 3 auto while ramping up vehicle and battery production.
“While Tesla expects that its current sources of liquidity, including cash and cash equivalents, together with its current projections of cash flow from operating and retail financing activities, will provide it with adequate liquidity based on its current plans through at least the end of the current fiscal year, Tesla is now planning to raise additional funds by the end of this year, including through potential equity or debt offerings”. Musk stated that more details will be released with regards to the upcoming major update for Autopilot.
The sum would be required for its facilities and appropriate equipment, which would be needed for the Model 3, a vehicle that is planned to enter production in 2017. The additional funding, among other things, is also expected to back the company’s proposed merger with solar panel provider SolarCity Corporation. However, the company repaid $678 million on a revolving credit line in July.
After identifying the computational error on August 18, more than two weeks after the signing of the deal, Lazard realized the valuation range based on its discounted cash flow model was $18.75 to $37.75 per share.
Tesla has had negative cash flow since early 2014 and operating losses for last 14 consecutive quarters.
The accident from May is the first known fatal accident involving a vehicle being driven by itself by means of computer software, sensors, cameras, and radar. The merger would however, place extra pressure on the company’s liquidity levels.
According to the filing, the company plans to redeem $422 million in convertible notes. It reportedly had around $3.25 billion is cash at the end of the last quarter.
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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.
