Share to twitterTesla CEO Elon Musk at the unveiling the Model Y hatchback in March at Tesla's design studio in Hawthorne, California, just one of the company's numerous capital-intensive projects.Tesla aims to raise at least $2 billion from new stock and debt offerings–on the heels of a–to help fund CEO Elon Musk’s seemingly endless push for capital-intensive plans for the electric car and solar power company.
The concurrent offerings include $650 million of common stock and $1.35 billion of convertible notes due in 2024, the Palo Alto, California-based company. Underwriters have a 30-day option to purchase an additional 15% of each offering, which could boost the total amount to $2.3 billion, Tesla said. Musk, already Tesla’s biggest shareholder, plans to buy $10 million of the new stock offering.
Musk hinted the move was coming in a results call last month, after a disappointing first quarter that saw the company fall back into the red with a massive $702 million loss and a $1.5 billion drop in its cash to repay an earlier convertible bond obligation. Tesla also revealed this week in itsthat those results would have been even worse had it not been for a big jump in sales of emissions credits that rose to $200.6 million from just $30 million a year earlier.
In the nine years since its initial public offering, Tesla has posted only four profitable quarters, of which only two were consecutive. While Musk has promised sustainable profitability at different points, exactly when that may happen remains unclear, particularly considering the number of projects he’s committed the company to.
Self driving? Public transport makes it happen. 😆🙋
Correction: because after burning cash you need more to stay afloat and then carry on the plans
Eh wrong. His big plans don’t work and burn cash. That’s why
Memes are expensive!
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