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In a new series of regulatory filings Friday morning, the company has increased about 17.5% the amount of its cash.
Part of the increase is due to the slightly higher estimated price of the shares sold. The shares gained 4% in trading Thursday after the announcement of the initial capital increase. But Tesla also plans to sell more shares to the public, as well as more debt that can be repaid later by shares if the stock price can reach a certain target.
Although the additional shares will dilute the value of Tesla's current shares, investors were prepared for the capital increase since last week. Some were perhaps preparing for an even larger share sale. Some investors feared that the company would face a cash flow problem without cash flow increases.
"We see this as a clear net profit for Tesla," said Daniel Ives, general manager of equity research at Wedbush Securities, in a note sent Thursday to his clients. "The company had to take its medication and dispel the concerns of the very real investor who feared that she did not have enough capital to face her financial obligations in November and in the future [capital spending] Needs."
CEO Elon Musk had insisted for much of last year that the company was doing well and would not need to raise additional funds. But a depressed share price forced her to repay a $ 920 million bond in March with cash rather than shares.
After announcing his results last week, Musk told investors that "at this point, I think it's worth raising funds." The timing and magnitude of this increase was not disclosed at that time.
Tesla intends to use the product pulled offers to strengthen its balance sheet, as well as for the general needs of the company.
Musk himself intends to buy $ 10 million worth of shares once these are offered.
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