tesla model 3 red front
  • Tesla Model 3
  • Image Credit: Sebastian Blanco / Autoblog
Tesla Model 3
  • Tesla Model 3
  • Image Credit: Copyright 2016 Sebastian Blanco / AOL
Tesla Model 3
  • Tesla Model 3
  • Image Credit: Copyright 2016 Sebastian Blanco / AOL
Tesla Model 3
  • Tesla Model 3
  • Image Credit: Copyright 2016 Sebastian Blanco / AOL
Tesla Model 3
  • Tesla Model 3
  • Image Credit: Copyright 2016 Sebastian Blanco / AOL
Tesla Model 3
  • Tesla Model 3
  • Image Credit: Copyright 2016 Sebastian Blanco / AOL
Tesla Model 3
  • Tesla Model 3
  • Image Credit: Copyright 2016 Sebastian Blanco / AOL
Tesla Model 3 interior and touchscreen
  • Tesla Model 3 interior and touchscreen
  • Image Credit: Copyright 2016 Sebastian Blanco / AOL
Tesla Model 3 interior and touchscreen
  • Tesla Model 3 interior and touchscreen
  • Image Credit: Copyright 2016 Sebastian Blanco / AOL
Tesla Model 3 rear lights
  • Tesla Model 3 rear lights
  • Image Credit: Copyright 2016 Sebastian Blanco / AOL
Tesla Model 3 license plate
  • Tesla Model 3 license plate
  • Image Credit: Copyright 2016 Sebastian Blanco / AOL
tesla model 3 black profile
  • Tesla Model 3
  • Image Credit: Tesla Motors
tesla model 3 red and silver above
  • Tesla Model 3
  • Image Credit: Tesla Motors
Tesla Model 3 red above
  • Tesla Model 3
  • Image Credit: Tesla Motors
Tesla Model 3 silver front
  • Tesla Model 3
  • Image Credit: Tesla Motors
Tesla Model 3
  • Tesla Model 3
  • Image Credit: Tesla Motors
Tesla Model 3
  • Tesla Model 3
  • Image Credit: Tesla Motors
Tesla Model 3
  • Tesla Model 3
  • Image Credit: Tesla Motors
Tesla Motors is hoping more money won't bring more problems, as the California-based electric-vehicle maker braces itself for the ramping up of its Nevada Gigafactory as well as its buyout of SolarCity solar-energy provider. The automaker filed documentation with the US Securities and Exchange Commission (SEC) today about the SolarCity merger-voting process, and included information about a possible sale of either debt or equity for fund-raising purposes. The company didn't say how much money it wants to raise.

As of June 30, Tesla had $3.25 billion in cash, up from $1.2 billion at the end of last year. Since then, though, the company paid down a credit line by almost $700 million, Reuters noted. Additionally, Tesla earlier this month agreed to acquire SolarCity (Tesla chief Elon Musk is SolarCity's chairman) for $2.6 billion in stock. Reuters quoted a University of Michigan business professor as calling SolarCity "a virtual sinkhole for capital," so with that in mind, Tesla looking for more of a cash cushion. SolarCity took a $375 million loss last year after losing $769 million in 2014.

Gartner transportation analyst Mike Ramsey noted in a Tweet that Tesla's previous efforts to raise cash haven't impacted the company's stock price. Indeed, Tesla's shares were little-changed today, though the stock has fallen about 15 percent during the past year.



Meanwhile, Tesla, which has never made an annual profit and last had a profitable quarter more than three years ago, held the grand opening for its massive Gigafactory in Nevada late last month. The plant is estimated to eventually cost about $5 billion, and it's vital to the company's goal of making enough batteries to bring down component costs for the lower-priced Model 3.

Related Video:

The Industry Impact of a Potential Tesla-SolarCity Deal

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