Latest
Recommended
Published: Fri, September 02, 2016
Economy | By Melissa Porter

Faced with crunch, Tesla plans to raise additional cash this year

Faced with crunch, Tesla plans to raise additional cash this year

The automaker also revealed that it plans to raise new capital by the end of the year, in part to support SolarCity, Musk's home-solar business.

Electrek has just learned that the electric carmaker's upcoming v8.0 software update will come along with a new safety restriction to anticipate drivers blatantly bypassing agreed-upon safety protocols. The Ludicrous upgrade allows the insane acceleration, which has made the Model S so popular, but it makes sense that this upgrade is not available for the mid-tier P90D as the P100D is the new fastest flagship of Tesla.

Tesla and SolarCity are cash-strapped amid a merger proposed by billionaire entrepreneur Elon Musk, who heads both firms. Back in May, the company sold millions of shares and managed to raise about $1.5 billion.

Tesla also indicated spending a portion of the funds to buy equipment that will be used to produce battery cells at its Gigafactory, now under construction in Reno, Nevada.

Today, Tesla updated its website to show a hidden payment option to buy "Supercharger credits" per KWh block - hinting at a business model surrounding the Model 3 access to Superchargers...

Model 3 prototype. Image source: Tesla Motors. The company claims that this model will allow vehicle to travel over 315 miles while the updated Model X P100D can travel 289 miles. Tesla is already accepting reservations for the Tesla Model 3 for a downpayment of $1000 with deliveries expected in late 2017.

Evidence pointing to a likely debut of a pay-per-kWh model for Model 3 Supercharging is important news for investors.

Adding to the money going tout the door, the company also noted in the filing that it "received notices of conversion from holders of approximately $422 million in aggregate principal amount of Tesla's convertible senior notes due 2018".

Reuters reports Tesla ended the second quarter with nearly $3.25 billion in cash, but is likely to have just $400 million left after it pays back a revolving credit line, redeems convertible notes and invests in its production expansion.

Musk was asked on Twitter why the vehicle's radar did not detect the truck.

"These are really profound milestones and I think will help convince people around the world that electric is the future and it's time to move to sustainable transport", Tesla CEO Elon Musk said during a conference call.

Like this: