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
-
On Lincoln-Shinola, Euro EV Sales, Engineered Carbon, and more
On a Lincoln-Shinola concept, Euro EV sales, engineered carbon for fuel cells, a thermal sensor for ADAS, battery analytics, and measuring vehicle performance in use with big data
-
Enterprise Edges into Self-Driving Car Market
U.S. rental car giant Enterprise Holdings Inc. is the latest company to venture into the world of self-driving vehicles.
-
On Urban Transport, the Jeep Grand Wagoneer, Lamborghini and more
Why electric pods may be the future of urban transport, the amazing Jeep Grand Wagoneer, Lamborghini is a green pioneer, LMC on capacity utilization, an aluminum study gives the nod to. . .aluminum, and why McLaren is working with TUMI.