Matti Robinson
2 May 2019 13:09
Revolutionary electric car company, Tesla, is looking for investments to continue operations as planned. The company is looking to raise another $2 billion from investors.
According to CNBC, Tesla is going to try and raise the money via convertible notes and new equity. $1.35 billion would come from convertible notes and $650 million from new equity.
Tesla is looking for investors and one of them is said to be company CEO Elon Musk. Musk has offered to buy around $10 million worth of stock, which is of course a drop in the bucket for both the entirety of the investment round, or Musk's 20% stake in the company worth over $12.5 billion.
Tesla has been burning through their cash deposits in a remarkable pace for couple years. Musk said in the quarterly conference call to shareholders that raising money is not a fix, but instead the company needs to be more efficient.
I don't think raising capital should be a substitute for making the company operate more effectively. I do think there is some merit to raising capital, but this is sort of probably about the right timing.
Elon Musk, Tesla CEO