Tesla Motors Inc (TSLA.O) said on Friday it must repay the principle on $411 million of 2018 convertible notes and expects to do so in the third quarter, adding to the cash pressure on the electric vehicle company. The company are also working continuously on their new Sedan project, the Model 3, which is slated to be launched next year.
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Tesla is now completing construction of a battery factory dubbed the “Gigafactory” in Nevada and intends to increase production next year of a new mass market sedan, the Model 3, all pointing to an increase in spending.
In its 2Q16 letter to shareholders, Tesla mentioned that the average price of its Model S “increased 3% sequentially, due to higher option take rates and the modest price increase associated with the Model S refresh”.
In other Tesla Motors news, Director Kimbal Musk sold 460 shares of Tesla Motors stock in a transaction on Monday, June 13th. In the corresponding quarter of 2015, Tesla posted GAAP and non-GAAP revenues of $955 million and $1.2 billion, respectively. The credit line, as said by the filing, had been repaid in July. More amount could be spent on securities. Finally, Alps Advisors Inc. purchased a new stake in Tesla Motors during the second quarter worth $267,000.
If the two third-quarter payments are subtracted from the mid-year cash balance, Tesla would have $2.1 billion left over.
Many Wall Street Analysts have commented on Tesla Motors Inc.
Tesla, apart from this issue has divulged that the company has received information requests from government authorities and regulators from time to time. Tesla’s first plan in 2006, was a master plan that included introducing affordable electric cars to the market for the average consumer, and most would say that Elon Musk has achieved that goal quite successfully.
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Along with the design and production costs of the individual models, there is also the cost of building a factory in which to make the trucks and semi-trucks as would not be feasible to produce them alongside Tesla’s sports cars, so that is an easy $1 billion.
