Tesla added another 4.8% after the company announced Thursday it has filed with the market authorities a document for a next round of fundraising of about $2 billion in the form of issues of new shares and debt securities, selling 3.1 million shares at a price of $243 each.
The group also announced that its CEO Elon Musk would double his initial commitment to buy shares up to $25 million, instead of the original $10 million. This would bring to $2.7 billion fundraising of the American electric car manufacturer. Elon Musk had suggested last week that a capital increase was imminent after the loss of $702 million faced in the first quarter.
Analysts have announced for months that Tesla would need to raise funds for its expansion programs, including the construction of a factory in Shanghai, the next Model Y SUV and other projects. Tesla earnings are expected to remain in the red over the current quarter. On the other hand, the manufacturer plans a return to profits in Q3, once the problems of delivery have been solved. Musk had estimated in April that a fundraising could happen soon. He predicted that it was ‘probably the right moment’. Tesla ended the quarter with $2.2 billion in cash following the repayment of a bond issue of $920 million. The group’s quarterly revenues totaled $4.5 billion, up from $3.4 billion a year earlier.
Tesla has maintained its range of delivery estimates between 360,000 and 400,000 vehicles in 2019. The company also estimates it will be able to produce up to 500,000 cars this year, at least if the Shanghai site achieves its goals. Production is expected globally “significantly higher” than deliveries. Tesla delivered 63,000 cars in the first quarter. It intends to deliver 90,000 to 100,000 units in the quarter from April to June. It is still banking on a 25% non-GAAP margin on Model S, X and 3.