Friday , August 19 2022

Tesla changed his mind – trying to raise even more capital


Electric car manufacturer and solar modules at Palo Alto, California, said on Friday that a positive response to Thursday's announcement that the company had announced plans to collect 2.3 million. USD, decided to increase the bid value.

In addition, the company's founder and Chief Executive, Elonas Musk, has doubled the amount he intends to buy shares of – $ 10 million. US $ 25 Million USD.

The proposal was described in detail in a statement to the US Securities and Exchange Commission (SEC). The offer provides up to 1.84 billion. US dollar in bills, which will be paid 2 percent. It is converted into Tesla shares in 2024. There are also more than 3.5 million new shares worth up to $ 866 million. USD.

The new figures are calculated on the assumption that the dealers will take full advantage of the opportunity to acquire additional securities and shares.

Last week, Tesla reported that the cash balance had fallen by $ 1.5 billion at the end of the first quarter compared to December. US $ 2.2 billion USD. E. Muskas said during a conference call that Tesla might need to raise capital again.

According to Tesla's statement, the latest cash and equity payments would increase the company's debt by $ 9.79 billion. US dollars to $ 11.63 billion USD.

The company will use revenue to "further strengthen its balance sheet and its overall business goals," he said.

By May 15, 2024, Tesla shares should reach $ 309.83 to convert bills into equities. That's 25 per cent. more than the current price. If the shares don't reach this price, Tesla, according to the announcement, will pay for most of the bills in cash.

Bruce Clark, senior president of international senior status agency Moody's, said on Thursday that this offer would provide enough liquidity to pay Tesla $ 566 million. The US dollars for bills that end in November, and to secure the money needed to extend the 3 Tesla electricity model to Europe, and to cover all costs are related to the reduced demand for each of the three Tesla models in the United States.

However, Moody kept the negative forecast and B3 scale for Tesla's debt – six levels lower than the level of investment.

In an announcement in March 30, the agency wrote rating that Model 3, the cheapest model for the company, currently sold an average of 55,000. USD. To increase sales, the price must fall to 42 thousand. Tesla reaches 25 per cent of US dollars, but to raise enough money to pay bills. General Profit Margins for Model 3, Moody said. Currently, gross profit of 42,000 Model 3 values ​​are "significant" below 25 per cent.

"To achieve this goal, the company will have to reduce the costs of fixed and variable vehicles," said Moody's. – We believe Tesla will face a big challenge – to increase aggressive production and distribution, to change product prices to 42,000. US dollar prices and at the same time cut costs to 25 percent. gross profit margin. "

Tesla lost $ 702.1 million in the first quarter at Palo Alto California. USD. This was the worst quarter in two years, with sales falling by 31 per cent. E. Muskas predicts losses in the second quarter, but noted that Tesla will be profitable in the third and fourth quarter.

The company suffered extremely high losses after the first quarter was profitable.

Tesla has lost over $ 6 billion USD since its inception – to change industry. E. Muskas hopes that future sales will be driven by increased sales and supply of independent vehicles for the new transmission service.

Tesla's stock price rose 1.2 per cent at the start of trading on Friday. to $ 247.07. Since the year began, their value has fallen by 26 per cent.

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