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Report: Tesla May Need $10 Billion by 2020
Tesla Inc. may need to raise more than $10 billion in fresh capital by 2020 to pay for new product development and launch production in China, says Goldman Sachs Group.
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Tesla Inc. may need to raise more than $10 billion in fresh capital by 2020 to pay for new product development and launch production in China, says Goldman Sachs Group.
CEO Elon Musk has announced several costly new projects, including a new ultra-high-performance sports car and an electric highway truck. Tesla also has taken steps to set up an eventual production base in China.
Goldman Sachs notes that the electric car company has multiple funding options to achieve its goals, but all carry risks for investors. In a gloomy report, it notes that new debt would lower Tesla’s credit rating, and issuing new shares should dilute value for current shareholders.
Tesla’s stock price has dropped 8% this year over concerns about production problems with the company’s $34,000 Model 3 sedan. Goldman Sachs predicts the company’s shares will slide another one-third to around $195 over the next six months.
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