Tesla Inc TSLA plans to increase its weekly Model 3 production rate to 7,000 vehicles by the end of 2019. It’s not an inexpensive goal, but management’s made a capital plan.
Coming Up With Cash
As it ramps production, Tesla expects cash generated from core operations to cover capital expenditures and pay off debt. The company concedes, however, that it may explore financing alternatives.
“As always, we continually evaluate our capital expenditure needs and may decide it is best to raise additional capital to fund the rapid growth of our business,” according to the company's 10-Q filed Monday.
One such alternative may be to shift resources from energy investments to automotives. Tesla plans to halt research and development of SolarCity and record a $47-million impairment in the second quarter, according to the SEC filing.
Tesla remains engaged in stockholder lawsuits challenging the 2016 SolarCity purchase. How its write-off will affect the litigation remains unseen.
Following Procedures
The filing came days after CEO Elon Musk reached an agreement with the SEC to amend their settlement deal over social media announcements. The deal now specifies topics Musk cannot tweet about without prior approval from an “experienced securities lawyer.” It does not propose fines or punishments for non-compliance.
Tesla's stock closed Friday's session at $235.14 per share and traded own marginally Monday morning.
Related Links:
6 Months After Turning Bullish, Citron's Andrew Left Is Out Of Tesla
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
