Two weeks after the promise of his boss Elon Musk that the group was not going to take advantage of its market boom to go into debt again with the markets, Tesla announced Thursday, February 13, to want to raise more than 2 billion dollars of money fresh.
These funds will be used to "further strengthen the balance sheet"And to finance the company's expenses and overheads, said the Californian electric vehicle manufacturer in a document addressed to the stock market policeman, the SEC. In detail, Tesla intends to sell a little more than 2.65 million of its shares, which would bring it a little more than 2 billion dollars at the closing price of the Tesla title (767.29 dollars) Wednesday evening on the Stock Exchange of New York.
Elon Musk has himself pledged to acquire 13,032 titles for a total of $ 10 million, while Larry Ellison, member of Tesla's board of directors and co-founder of the IT group Oracle, will buy $ 1 million.
These announcements were not welcomed on Wall Street where the title Tesla yielded more than 2% in the first exchanges. Tesla shares recently experienced a dizzying surge, pushing the company's valuation to more than 135 billion dollars Wednesday evening, more than General Motors, Ford and Fiat Chrysler combined (112 billion between them).
But Thursday, investors were puzzled because Elon Musk said on January 29, during the conference call for the presentation of the 2019 results, that Tesla would not go into further debt on the markets to finance its operations. Two weeks later, this promise fizzled.
"It makes no sense to raise money when we expect to generate cash flow"Said the whimsical Elon Musk in particular.
Tesla's debt, which has never made a single annual profit since its creation in 2003, was $ 11.6 billion as of December 31, 2019. The group is teeming with projects: it is building its first European factory in Berlin and promised it will be operational in 2021. In parallel, he recently started production at his Chinese factory in Shanghai and is in the process of producing his first SUV, the Model Y.