• 3 minutes Biden Seeks $2 Trillion Clean Energy And Infrastructure Spending Boost
  • 6 minutes Pompeo upsets China; oil & gas prices to fall
  • 11 minutes The Secret China Iran Oil Deal At The Heart Of One Belt One Road Project
  • 1 hour Trump Suggests Delaying Election Amid Fraud Claims
  • 1 hour The World is Facing a Solar Panel Waste Problem
  • 2 hours While U.S. Pipelines Are Under Siege, China Streamlines Its Oil and Gas Network
  • 16 hours End Game For Oil? OPEC Prepares For An Age Of Dwindling Demand
  • 1 hour Rational analysis of CV19 from Harvard Medical School
  • 1 hour Trumpist lies about coronavirus too bad for Facebook - BANNED!
  • 1 day Trump Hands Putin Major Geopolitical Victory
  • 12 hours Biden admits he has been tested for Cognitive Decline several times. Didn't show any proof of test results.
  • 2 hours Why Oil could hit $100
  • 2 days Enough is Enough...
  • 11 hours Gazprom fails to exempt Nord Stream-2 from EU market rules

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

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