Its cash reserves dwindling, Tesla has announced a plan to raise $2 billion through the sale of additional shares of stock and debt
CEO Elon Musk had insisted through much of the last year that the company was doing fine and would not need to raise additional cash. But a depressed stock price forced it to pay off a $920 million bond in March with cash rather than stock. That payment was a big factor in the company's cash reserves falling by $1.5 billion during the quarter, leaving it with just over $2 billion in cash on its balance sheet. It also reported a $702 million loss in the quarter.
Read MoreTesla intends to use proceeds from the offerings to strengthen its balance sheet, as well as for general corporate purposes.Here are the 9 things Elon Musk needs permission to tweet about in the futureMusk himself intends to buy $10 million of the shares once they are offered.Tesla shares jumped 4% in premarket trading following the filings. Although the additional shares will dilute the value of current Tesla shares, investors had been prepared for the capital raise since last week.
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