Mexican Media Brands
Tesla Plans $2 Billion Capital Boost
Tesla Inc. hopes to raise $2 billion through a debt and stock offering after CEO Elon Musk acknowledged last week that the company might raise more capital.
#economics
Share
Tesla Inc. hopes to raise $2 billion through a debt and stock offering after CEO Elon Musk acknowledged last week that the company might raise more capital.
The plan would offer $1.4 billion in bonds, plus as much as $650 million in Tesla shares over three years. Musk intends to buy $10 million worth of the new stock.
The funding comes after Musk repeatedly said last year that Tesla no longer needed new capital. But he changed his position last week after Tesla reported a 13% drop in unit sales. Analysts noted that the slump cut the company’s available cash to a three-year low of $2.2 billion.
At the time, Musk said “dramatic improvements” in Tesla’s manufacturing efficiency and cost reduction lent merit to the idea of raising capital.
RELATED CONTENT
-
Porsche Doubles EV Target for 2025
Porsche AG says about half the vehicles it sells by 2025 will be equipped with hybrid or all-electric powertrains, twice the ratio it forecast four weeks ago.
-
Report Forecasts Huge Economic Upside for Self-Driving EVs
Widespread adoption of autonomous electric vehicles could provide $800 billion in annual social and economic benefits in the U.S. by 2050, according to a new report.
-
Ford’s $42 Billion Cash Cow
F-Series pickups generate about 30% of the carmaker’s revenue. The tally is about twice as much as what McDonald’s pulls in.