Tesla Motors Inc. disclosed a $1.1 billion requirement for third-party cash last Friday. It includes planned expenditure, resulting in about one-third of the cash on hand during mid-year. This is a new sign of stress on the popular manufacturer of premium electric vehicles.
The company is currently finishing construction on a huge battery factory that is located in Nevada. It is known as the Gigafactory, and it is increasing production next year for a mass-market sedan known as the Model 3. It has raised further questions regarding whether the company will be able to raise further cash for reaching its goals.
The company disclosed that $3.25 billion was available regarding principal sources of liquidity, as declared on 30th June 2016. It includes a $1.7 billion public offering in the month of May with a credit line of $678 million.
According to the filing it had repaid a $678 million credit line, and it plans to repay a principle on a sum of $411 million of convertible notes in 2018 through the third quarter. Reports indicate that the company will spend more on securities.
In the filing with the US Securities and Exchange Commission, Tesla wrote that during the third quarter they would use substantial amounts of cash, linked with the conversion of their 2018 notes. At the same time they can pursue other options to decrease their outstanding balance of convertible notes.
However that will require further outlays of cash. Tesla would have a sum of $2.1 billion left if two third-quarter payments are taken away from the mid-year cash balance.
On Wednesday the company told analysts that on the second half of the year, it had planned to spend $1.75 million on capital expenditures. Beyond the filing, Tesla didn’t wish to comment any further. Tesla Motors wishes to buy SolarCity (solar panel installer) Corp for a price of $2.6 billion through shares.
Tesla could add a carwash system in its supercharger stations to make better use of the time spent by car owners on charging their cars. If this information is true, it could cost around $40 for every car wash. Is it a premium car wash service provided by Tesla?
It could be, but from the looks of it even the owners of these luxury electric vehicles might find it a bit costly. A Tesla owner could do a lot of things with the cash that he/she would be spending on washing his/her car.
According to learnbonds.com, an owner can purchase four months of access to Netflix, 240 water bottles, a round of golf, a full DVD-series of Scooby-Doo and a nice steak supper with that kind of money.
Talking about sources close to this matter, Electrek says that Tesla is planning to partner-up with Eco Green Auto Clean. According to the company, this new system will leave cars spotless and clean, while using less than a cup of water for each wash. The company makes use of a biodegradable wash shower and microfiber towels.
According to the company the process is eco-friendly, and it is designed to take away and dissolve dirt when in contact. Since water is a critical resource in California, this sounds like a great initiative. The area is still suffering from a record-breaking drought. On top of that, there are many Tesla cars to be found in this region.
Meanwhile, Tesla Motors is trying to remove the one drawback in its Supercharger system: that is, waiting 30 minutes for your vehicle to be fully charged. This time could be even longer if there’s a queue. Sadly, the Supercharger stations don’t give a simple squeegee along with water for washing the windshield.