The explosion and the subsequent loss of the AMOS-6 is a major setback for the social-media company, which is trying to connect billions of people in developing nations to the Internet. The company noted the cash would also support the combined company.
The next tranche of funds will “used primarily for tooling, production equipment and construction of the Tesla’s Model 3 production lines”.
Tesla exited the second quarter at ~2,000 vehicles per week. SolarCity represents about 4 percent of the tech-guru’s net worth – but Tesla is another matter. Tesla’s first half year was botched up. One would presume that future Model 3 drivers will be given the option to purchase the amount of energy that can be drawn from its Supercharger network. The $5 billion battery facility is expected to pave the way for Tesla to produce affordable cars, as it will help lower the cost of battery acquisition. “Well, an ordinary driver needs to be even faster”.
Recommended article:Tesla Motors: Buy Or Sell? The goal of the additional capital, among other things, is to support its proposed merger with home-solar company SolarCity Corp.
Tesla is already taking preorders for the affordable Model 3, with bookings having surpassed 350,000 units back in April.
Tesla has been operating in the red and has had a negative cash flow since early 2014, Reuters notes.
Earlier this month, Tesla said it closed the second quarter with almost $3.25 billion in cash, but in July it repaid $678 million on a revolving credit line and planned to redeem $422 million in convertible notes.
Tesla booked a net loss of $486 million in 1H2016, increasing 78% from the same period past year.
SolarCity was forced to tap the bond market for financing yet Musk, along with his cousins – SolarCity’s CEO Lyndon Rive and its technology chief Peter Rive – bought between them more than 80 percent of the $124 million bond issue.
Mark Zuckerberg was clearly gutted after SpaceX’s Falcon 9 rocket exploded on the launch pad destroying one of Facebook’s satellites and he was not backward at snarking at Elon Musk’s company for stuffing it up.
from Department of Private Space Inc.