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.
I wonder if this latest @TeslaMotors fund raising will start to hurt the share price. Generally it hasn't.— Mike Ramsey (@MRamsey92) August 31, 2016
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.