Tesla will give up the "frugal diet" recently. The company has imposed an ambitious financial goal

Tesla raises its capital by more than 2 billion dollars

The Tesla plan comes after the company repeatedly failed to meet its profit forecasts. The company faces costly challenges, including launching production in China, reviewing retail operations and services in the United States, and developing new models such as the Y and Semi models.

Analysts estimate that Tesla, which spent $ 1.5 billion in the first quarter of this year, will not be able to achieve its development plans in the absence of new revenue.

The company's shares rose 4.3% to $ 244.10, while the bond yield of $ 1.8 billion reached the lowest level last month. The $ 650 million increase in new shares and $ 1.35 billion in debt could bring the company's revenue to $ 2.3 billion.

Tesla CEO Elon Musk has invested $ 10 million in his own funds, according to company statements. For over a year, Musk has insisted that Tesla did not need capital increase and relied on the volume and efficiency of sales of the model. 3, which, according to Musk, could have generated profits throughout the year. In progress. These forecasts were removed after a loss of $ 702 million in the first quarter of the year and warnings that earnings could only be realized in the second half of the year.

Capital growth should not replace the efficiency of operations, said Musk last month, suggesting that a capital increase could be near. "It's fine to have a frugal diet for a while," he said.

Tesla, four lucrative neighborhoods

Tesla has announced four lucrative quarters since its inception in June 2010. The company has taken a series of steps to resume the price stabilization strategies of its cars as a result of the $ 7,500 reduction in federal tax. for Tesla buyers, which affected first-half deliveries.

Musk has also been distracted by a public dispute with US regulators. The company's shares have fallen by 28% since the beginning of the year.

The company closed the first quarter of 2019 with $ 2.2 billion in cash. In 2019, Tesla expects capital expenditures of between $ 2 and $ 2.5 billion and between $ 2.5 and $ 3 billion annually for the years 2020 and 2021.

Throughout its history, Tesla has raised funds through bank loans, equity sales, convertible bonds, bond sales and the securitization of car rental contracts.

The last convertible security of Tesla was a $ 977.5 million guarantee maturing in March 2022 and containing a 2,375% coupon with a 25% conversion premium at the price of the stock. $ 262 per share. action at the time of sale. This obligation can be converted into equity at a price of $ 327.50 per share, which currently represents approximately 36% more than the current price of Tesla shares.

In March, Tesla was forced to repay a convertible cash of $ 920 million because the stock had not reached the conversion price of about $ 360 per share.

Bond yields of $ 1.8 billion dropped to the lowest level last month, just over 8%, about 2.7%, above the 5.3% coupon.

Goldman Sachs and Citigroup will manage the offer. BofA Merrill Lynch, Deutsche Bank Securities, Morgan Stanley and Credit Suisse will be the additional directors.

Goldman Sachs, Morgan Stanley and Bank of America hold $ 507 million in outstanding mortgages with Musk, with Tesla shares providing collateral. If the company's shares fall, the banks could force their managers to sell some of these shares. Tesla's previous reports showed that Musk had $ 624 million in personal loans with banks backed by its shares.

Goldman Sachs recommended in a report of April 25 the sale of the shares of the company, setting a target price of $ 200 over 12 months.

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