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The
company is finishing construction of a massive battery factory
in Nevada, the Gigafactory, and ramping up for production next
year of a mass market sedan, the Model 3. That has raised
questions about whether the company will need to raise new cash
to reach its goals.
It said in the filing that it had $3.25 billion in principal
sources of liquidity as of June 30, 2016, including $1.7 billion
from a public offering in May and a $678 million credit line.
The filing also said that in July it had repaid that $678
million credit line and that it intended to repay principle on
$411 million of 2018 convertible notes in the third quarter and
could spend more on the securities.
"During the third quarter, we will be using substantial amounts
of cash in connection with conversions of our 2018 Notes and we
could pursue other actions to reduce our outstanding balance of
convertible notes, which could require further outlays of cash,"
Tesla wrote in the filing with the U.S. Securities and Exchange
Commission.
If the two third-quarter payments are subtracted from the
mid-year cash balance, Tesla would have $2.1 billion left over.
The company on Wednesday told analysts it planned $1.75 million
in the second half of the year on capital expenditures.
Tesla declined to comment beyond the filing.
Tesla, which wants to buy solar panel installer SolarCity Corp
<SCTY.O> for $2.6 billion in shares, also disclosed that the
value of its secured assets had limited its ability to borrow
under its asset-based revolving credit agreement with a
syndicate of banks.
Chief Executive Elon Musk earlier this week had repeated a
projection that if the deal is consummated, the combined
Tesla-SolarCity could require a "small equity capital raise"
next year.
REGULATORS REQUESTS
The company also said in its filing that "from time to time" it
has received requests for information from regulators and
governmental authorities "such as the National Highway Traffic
Safety Administration (NHTSA), the National Transportation
Safety Board and the Securities and Exchange Commission."
The federal regulator NHTSA is investigating a May 7 fatality in
Florida in which a driver using Tesla's auto-pilot system
crashed into a truck.
The Wall Street Journal reported last month that the SEC was
investigating whether Tesla had taken too long to disclose that
crash. Tesla at the time said it had received no communication
from the SEC. It was unclear from the filing whether the
reference to the SEC related to the crash or another matter, and
Tesla declined to comment further.
As it warned in its previous quarterly filing in March, Tesla
said the cost of building and operating its Gigafactory could
exceed the company's current expectations.
Tesla spent $117.4 million on the Gigafactory construction in
the first half of 2016 and targets spending a total of about$520
million in 2016.
(Reporting by Alexandria Sage and Paul Lienert. Writing by
Alexandria Sage; editing by Sriraj Kalluvila and Bernard Orr)
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Date08/05/2016 07:48 PM
Pictures1
Word Count520
Source News FeedsUS Online Report Business News,US Online Report
Technology News,US Online Report Top News
IDtag:reuters.com,2016:newsml_KCN10G2E1:4
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