Tesla may turn to ‘alternative’ funding sources
While the automaker indicated that its “core operations” should generate enough cash to cover near-term obligations, it may “choose to seek alternative financing sources.”
“As always, we continually evaluate our capital expenditure needs and may decide it is best to raise additional capital to fund the rapid growth of our business,” the documents said.
The company noted it should have adequate liquidity over the next year, but its operations and prospects could be “negatively affected” if it cannot raise additional funds when it needs or wants to do so.
Shares of Tesla were trading lower during Monday’s session and are down more than 30 percent so far this year.
In financial results released last week, the automaker posted a loss of $702 million in the first quarter and said it may need to raise capital, reversing CEO Elon Musk’s earlier position that it would not need to do so. Tesla doesn’t expect to turn another profit until the third quarter.
Meanwhile, over the weekend, Musk reached a deal with the SEC regarding his Twitter usage. The agreement lays out new terms governing what the CEO is allowed to post without pre-approval, which largely include a list of items pertaining to financial details about the company.
Musk’s Twitter habits came under fire last year, when he wrote a post about potentially taking the automaker private at $420 per share – for which he and the company were both fined $20 million.