Tesla recently stated that the company may seek “alternative sources” of financing but believes cash generated from car sales may be enough to fund investments and pay back debts over the next year.
Reuters reports that Elon Musk’s electric car manufacturer Tesla is considering seeking alternative sources of funding following the posting of a $700 million loss in the first quarter. During an earnings call, CEO Elon Musk stated: “There is some merit to raising capital. It’s probably about the right time.”
Analysts had previously expected that the company may need to raise further capital for the expansion of its factories, including the development of its new Shanghai facility. The production of the company’s new Model Y SUV and other projects would also require some serious funding. In a regulatory filing, Tesla stated: “We continually evaluate our capital expenditure needs and may decide it is best to raise additional capital to fund the rapid growth of our business.”
The company claims to have $2.2 billion in cash equivalents and has projected capital expenditures of $2.5 billion to $3 billion over the course of the year; Tesla’s current total debt stands at $10.33 billion. “We may need or want to raise additional funds in the future, and these funds may not be available to us when we need or want them, or at all,” Tesla said in its recent regulatory filing.
Last week, Elon Musk and the Securities Exchange Commission reached an agreement on the CEO’s use of Twitter which has previously cost him and Tesla fines totaling $40 million. It was agreed that Musk can tweet whatever he likes, apart from information about certain events or financial goals. If Musk is to tweet about these, he must seek pre-approval from a securities lawyer.
According to TechCrunch, if Musk’s tweets contain the following items he must seek pre-approval:
- any information about the company’s financial condition or guidance, potential or proposed mergers, acquisitions or joint ventures,
- production numbers or sales or delivery number (actual, forecasted, or projected),
- new or proposed business lines that are unrelated to then-existing business lines (presently includes vehicles, transportation, and sustainable energy products);
- projection, forecast, or estimate numbers regarding Tesla’s business that have not been previously published in official company guidance
- events regarding the company’s securities (including Musk’s acquisition or disposition of shares)
- nonpublic legal or regulatory findings or decisions;
- any event requiring the filing of a Form 8-K such as a change in control or a change in the company’s directors; any principal executive officer, president, principal financial officer, principal accounting officer, principal operating officer, or any person performing similar functions
Breitbart News will continue to follow Tesla’s financial moves.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter @LucasNolan or email him at lnolan@breitbart.com