Tesla CEO Elon Musk giving mixed signals on need for financing: Sources
Tesla may face higher financing costs and growing questions over Morgan Stanley’s and Goldman Sachs’ banking relationships with the electric car maker, the FOX Business Network has learned.
“They are very concerned over Tesla’s souring finances, both the banking community and the banks are, and the growing competition,” FOX Business’ Charlie Gasparino reported from the Milken Institute Global Conference in Beverly Hills, California.
During a recent earnings call, Musk indicated the electric automaker will need to raise more cash after having posted a $700 million loss for the first quarter.
“There is merit to the idea of raising capital at this point,” Musk said last week. “It is very important as the company scales to make sure we are on a solid foundation and that we have the appropriate financial discipline across the company and that we are spending money very efficiently. At this point, I think we are doing that.”
Bankers are signaling Tesla will have to pay up for any new financing deal in coming months.
Tesla trimmed its afternoon gains following Gasparino’s tweet. The electric-car maker’s shares finished Monday at $241.47, up 2.69 percent. Tesla is coming off a 14 percent plunge last week, its worst since August of last year.
Tesla, Morgan Stanley and Goldman Sachs had no immediate comment.