Electric vehicle manufacturer Tesla announced on Wednesday that it will raise US$1.15 billion in a series of offerings.
Tesla has raised roughly $1.2 billion in a quest for capital ahead of the auto company's launch of the increasingly important Model 3 vehicle.
The $850 million component of the capital raise came from the issuance of convertible notes that would be due in 2022.
The future of Tesla's profitability will be dictated by the commercial success of the Model 3, which makes the most affordable vehicle ever offered by this brand its most important product in years.
Fmr. Sen. Dan Coats confirmed as National Intelligence Director
Burr says he's confident his former Republican colleague will help the intelligence community face a wide range of challenges. The vote was 85-12 to confirm Coats, who also served as ambassador to Germany under former President George W.
Arsenal fan compares Wenger to Mugabe
Success is not down to me to judge, I will leave that to the media. "It's good today. What is for sure is that we are in a position where we can't waste points".
Oklahoma Senator charged with child prostitution of teen boy
The Oklahoma Senate on Wednesday stripped Shortey of most of his privileges, including his right to an office at the Capitol. Shortey, who attended Hartland Baptist College and is in his second term in the senate, is married with two kids.
Musk, already the company's top shareholder with a stake of about 21 percent as of December, bought 95,420 common shares for $25 million in the latest stock sale, Tesla said.
The amount the company actually raised is somewhat in excess of the amount they were expecting to raise however, it is still less than what many analysts were expecting. Of course, if the Model 3 is delayed, it would mean cash burn could accelerate and the company would more than likely need another trip to the secondary markets. For instance, Colin Langan of UBS argued Tesla's $1.15 billion raise through a combination of stock and convertible debt is short of the high end of his estimate range of $2 billion. It should be noted that company received 276,000 pre-orders of the upcoming vehicle in just two days after it was announced past year. However, while speaking at on the company's earnings results conference call in February, he had also added that the company would be brought perilously close to the edge in terms of its overall cash position.
"Liquidity and cash burn remain key near-term risks, and investors may grow tired of continued raises as this is the second capital raise in a year", wrote UBS analyst Colin Langan.