May 3, 2019
Tesla raising $2.3 Billion to get back on its feet
Shareholders only receiving a temporary reprieve.
We all see Tesla as one of the most innovative companies out there. We assume they have the funds to keep providing us with futuristic innovations. Little do we know, Teslas growth story has recently been questioned due to the companies $702 million net loss, vehicle delivers have fallen 31% from the fourth quarter. With these things having a negative impact on Tesla, it has decided to raise a total of $2.3 Billion of stock. Tesla ended its first quarter with a total debt of $10 billion--Convertible bonds added $566 million to this debt. If Tesla want to get back on its feel it will have to deliver about 100,00 cars in the final three quarters of the year. The stock is stated to be down about a third from one of their highs back in December. With so much debt and not many options to raise capital, it shows that Tesla will take a while before it has enough money to invest in their company.
This article shows the side of the things that we don't see. I don't keep up with big companies like this. It is easy to assume that a company this big is doing great. Hearing their troubles is an eye opener on no matter how big and successful a company may be-- they can still easily be losing more money than they are gaining. Tesla needing so much money to help them even pay off their bills is insane. Knowing they need more than $2 billion to even start investing is absurd. Although Tesla is struggling right now, it still remains one of the best known companies that have breathtaking innovations.
Link: https://www.wsj.com/articles/tesla-needs-more-than-2-3-billion-to-recharge-its-battery-11556804306
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