Tesla plans to raise funds this year to tackle cash crunch


Tesla plans to raise funds this year to tackle cash crunch

The move would mark the second time this year the electric auto and battery company asked investors to chip in to back its aggressive growth ambitions. In addition to developing its own vehicles it develops sells and services full electric powertrain systems and components to other automobile manufacturers.

Tesla has received approval to acquire solar panel company SolarCity for $2.6bn, in a move which comes at a financial crossroads for a solar industry, which is facing the prospect of an oversupply of solar panels.

Now, Electrek, a blog with a strong track record for breaking Tesla news, claims the update will include an Autopilot system able to handle highway interchanges without being disengaged. Now that they've acquired regular funding and they've established their position on the market, the company can move on to even more affordable models and a wider market coverage.

The timing of the SEC filing on Tesla's fundraising plans "reinforces the need for SolarCity to have quick access to capital", Barclays analyst Brian Johnson said.

There is still time until we get there, of course, as for now all focus is on the Model 3.

Electric vehicle maker Tesla could be planning to limit its "autopilot" function for drivers who continually ignore the safety warnings.

Now our readers have pointed to an inactive code on the MyTesla page of Model 3 reservation holders - see mine as a reference above - that shows that Tesla added an option to attach a credit card to your account in order to buy "Supercharger Credit" per kWh. "The improvements will on several dimensions, but that's only a software update so it will be applicable to all cars". Tesla is reportedly offering an upgrade worth about $7,000 for $3,000 on the Model X.

Additionally, Tesla calls for more funds to support the capital needs arising from its $2.6 billion acquisition of struggling sister company SolarCity. Deliveries of Model 3 are expected to begin in mid to late 2017.

Earlier this month, Tesla had said that it closed the second quarter with almost $3.25 billion in cash.

The electric vehicle maker disclosed in the filing that it has to pay $422 million to bondholders over this quarter.

In fact, following the model's preview, company executive Elon Musk revealed that the finished interior of the Model 3 is dramatically different to the concept. The rapid cash burn is not only weakening Tesla's liquidity position, which was $3.25 billion at the end of the June quarter, but also prolonging its road to profitability.