This article is from the source 'rtcom' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.rt.com/business/427072-tesla-capital-funding-10-billion/

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Tesla may need $10bn by 2020, which could be bad for investors – Goldman Tesla may need $10 billion by 2020 to survive – Goldman
(35 minutes later)
The electric car maker Tesla may be in need of an additional $10 billion in the next two years for auto-making and expansion plans to China, Goldman Sachs said in a note.The electric car maker Tesla may be in need of an additional $10 billion in the next two years for auto-making and expansion plans to China, Goldman Sachs said in a note.
The options to get the funding are new bonds, convertible notes or equity, but each of them has possible drawbacks, the bank says.The options to get the funding are new bonds, convertible notes or equity, but each of them has possible drawbacks, the bank says.
“We see several options available to the company to refinance maturing debt and raise incremental funds, which should allow Tesla to fund its growth targets,” Goldman analyst David Tamberrino wrote. “However, issuing incremental debt (including priming current creditors with secured debt) may weigh on the credit profile of the company while issuing additional equity or convertibles at lower premiums would dilute current shareholders.”“We see several options available to the company to refinance maturing debt and raise incremental funds, which should allow Tesla to fund its growth targets,” Goldman analyst David Tamberrino wrote. “However, issuing incremental debt (including priming current creditors with secured debt) may weigh on the credit profile of the company while issuing additional equity or convertibles at lower premiums would dilute current shareholders.”
Tesla CEO Elon Musk has been cutting costs following production problems of the Model 3 since he doesn’t want to raise capital this year. The company burned through more than $1 billion in the first quarter.Tesla CEO Elon Musk has been cutting costs following production problems of the Model 3 since he doesn’t want to raise capital this year. The company burned through more than $1 billion in the first quarter.
“Tesla’s view that it doesn’t require a debt or equity raise this year is mathematically correct, but highly imprudent from a credit and risk perspective if followed,” Bloomberg Intelligence analyst Joel Levington said last month. Earlier this week, Musk said the firm was undergoing a “thorough reorganization.”“Tesla’s view that it doesn’t require a debt or equity raise this year is mathematically correct, but highly imprudent from a credit and risk perspective if followed,” Bloomberg Intelligence analyst Joel Levington said last month. Earlier this week, Musk said the firm was undergoing a “thorough reorganization.”
In the last year alone, Tesla lost over $2 billion. The company was losing $6,500 every minute and needs another $2 billion to get through the current year, according to Bloomberg estimates.In the last year alone, Tesla lost over $2 billion. The company was losing $6,500 every minute and needs another $2 billion to get through the current year, according to Bloomberg estimates.
For more stories on economy & finance visit RT's business sectionFor more stories on economy & finance visit RT's business section