Tesla, Inc. May Conduct Debt Raise, Equity Offering Not Being Considered

Tesla, Inc. May Conduct Debt Raise, Equity Offering Not Being Considered

At the end of last quarter, Tesla (NASDAQ: TSLA) was sitting on $3 billion worth of cash. That comes after the electric-car maker spent $959 million in capital expenditures during the quarter, leading to free cash flow burn of $1.16 billion. Tesla guided capital expenditures in the second half of 2017 to $2 billion as it invests heavily in the Model 3 production ramp.

Even before factoring in operating cash flow, those figures would put Tesla a little bit too close for comfort to its previously stated minimum threshold of $1 billion. Tesla is no stranger to capital raises, with the most recent one being earlier this year. This begs the question: Will Tesla need to tap capital markets in the near future?

Image source: Tesla.

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Source: Fool.com