In the first quarter of 2019, Tesla net losses of $702 million, although it had previously promised to return to profitability. The Silicon Valley automaker also expects to post a loss in the second quarter, with a return to profitability pushed back to the third quarter. There is nothing particularly surprising here. Since June 2010, when the company went public, it has posted a profit in just four quarters out of more than 30. Meanwhile, Tesla needs massive financing both to build an electric vehicle assembly plant in China and to bring new products to market in the form of the Model. Y SUV and electric long-haul tractor Tesla Semi. Where can I get the money for this? Borrow!
Thursday Tesla that the company intends to issue new shares in the amount of $650 million and convertible debt in the amount of $1,35 billion. At the request of buyers, it is possible to increase the volume of purchases of Tesla securities by 15%, which in total could bring the company $2,3 billion. Elon Musk , according to the company, will allocate $10 million of personal funds to purchase shares. The stock market reacted positively to this news. By the end of the day yesterday, Tesla shares rose 4,3% to $244,10 per share.
Interestingly, just a week ago, at its quarterly earnings conference, Tesla did not give any indication that it was short of funds. To build a plant in Shanghai, it had previously borrowed half a billion dollars and planned to further attract funds from local borrowers for construction. Now it turns out that much more money is needed. Previously, Musk refused to resort to issuing debt, explaining that the company would develop well on a βSpartan diet.β Well, diets are good as temporary measures. We hope that the additional funds received will be used by Tesla for future use.
Source: 3dnews.ru