After losses ramp up, Tesla prepares to raise $500 million image

Tesla Motors, tadalafil the youngest publicly traded US automaker, and a maker of premium electric cars, has announced through a filling it would offer 2.1 million shares to investors in a bid to raise half a billion dollars.

The second quarter results showed the investors need to worry about the company’s prospects: it has lost more money than ever, pushed down its sales forecast for the year and the production goal for the next one. The company has been burning through more cash than ever as it pushes for expansion: it is adding a second model to its lineup – the Model X sport utility vehicle and seeks to expand its businesses beyond the latest launch occurring next month. The proceeds from the share offer – which could total $566.5 million if underwriters will claim all additional share purchase rights – would be used to support the carmaker’s retail operations, charging network and energy-storage business. It will also further develop the planet’s biggest battery plant and introduce the entry-level electric car Model 3, read a filing with the Securities and Exchange Commission. “They are raising capital to fund growth, which is a good thing,” comments Dan Dolev, an analyst with Jefferies LLC.

Chief Executive Officer Elon Musk hinted last week the desire to increase its equity capital “as a risk-reduction measure.” The offering will bring increased stability for the smallest and youngest publicly held US auto manufacturer, which is now fending off major capital expenditures needed for to support its global aspirations and triple the vehicle range.

Via Bloomberg