Tesla Motors might raise billions of dollars by offering stock to speed up production strategies, betting the advantages will be enough to outweigh the dilution of the share cost.
When Elon Musk pulled ahead the firm’s target to enhance automobile assembly to 500,000 a year to 2018 from 2020, he included that capital spending will increase by about 50 percent from the initial budget for this year, which would most likely require some fundraising.
The smallest and youngest openly held United States automobile maker – which sells designs with a $10,000 optional Ludicrous Speed Upgrade – deals with huge capital expenditures as it ramps up its huge battery factory towards complete production, adds tooling for a 3rd design, broadens sales and service operations internationally, installs more superchargers, seeks to work with extra production professionals and contemplates adding more vehicle-assembly capability.
Expert Brian Johnson of Barclays forecasted a $3 billion equity raising at some point in the second quarter. At current stock costs, a deal of that size would have to do with 14.5 million shares, a boost of 11 per cent to the variety of shares outstanding.
