• 3 minutes Shale Oil Fiasco
  • 7 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 12 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 16 minutes Global Debt Worries. How Will This End?
  • 28 mins americavchina.com
  • 2 hours DUMB IT DOWN-IMPEACHMENT
  • 2 hours Tories on course to win majority
  • 3 hours POTUS Trump signs the HK Bill
  • 24 hours Greta named Time Magazine "Person of the Year"
  • 1 hour Winter Storms Hitting Continental US
  • 11 hours WTO is effectively neutered. Trump *already* won the trade war against China and WTO is helpless to intervene
  • 7 hours Everything you think you know about economics is WRONG!
  • 1 day Forget The Hype, Aramco Shares May be Valued At Zero Next Year
  • 7 hours Aramco Raises $25.6B in World's Biggest IPO
  • 2 hours China Burns More Coal than the Rest of the World !
  • 1 hour 2nd Annual Great Oil Price Prediction Challenge of 2019
The Oil Bulls Are Back Despite Bearish Fundamentals

The Oil Bulls Are Back Despite Bearish Fundamentals

The announcement of a “phase…

The Fastest Growing Energy Sectors Of 2019

The Fastest Growing Energy Sectors Of 2019

The world saw a significant…

Tesla May Need Another Capital Injection As Q1 Brings $700 Million Loss

Elon Musk

Tesla may soon announce a capital raise after Elon Musk suggested “There is some merit to raising capital,” adding “It’s probably about the right time, as quoted by Reuters. The comments by Tesla’s CEO followed the release of the company’s first-quarter results yesterday.

The EV maker reported a net loss of US$702 million as well as a US$1.5-billion decline in cash and cash equivalents, to US$2.2 billion. What’s more, Model 3 production only inched up by 3 percent during the quarter, to 63,000, which must have disappointed shareholders eager to see the strong growth in production promised by the company.

Going forward, Musk once again revised down production targets: the gigafactory in Shanghai, currently in construction, would produce an average 1,000 or maybe 2,000 Model 3s weekly this year, rather than the 3,000 expected earlier.

Overall, however, Tesla kept its production forecasts for the year unchanged at 360,000 to 400,000. A production rate of 500,000 cars is also a possibility in case the Chinese factory achieves volume production in the last quarter of the year.

As for the next financial results of the company, this quarter’s loss will be a lot lower than the one for the first quarter, and in the third quarter the carmaker will return to the black. The need for a capital raise, however, may worry investors, whose lives have been kept interesting by Musk and company without a doubt.

The latest reason to worry came earlier this month, when one of the company’s largest shareholders, T. Rowe Price, cut its the stake he holds in Tesla via several funds sparking concern in the market. Between September and December last year, the funds reduced their holding in the EV maker from 10.2 percent to 5.2 percent. The cutting continued in 2019 as well: according to Reuters Refinitiv data, the asset manager divested 92 percent of its previous interest in Tesla.

By Irina Slav via Safehaven.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play