In its second quarter financial results announced earlier in the month, Tesla Motors [NSDQ:TSLA] revealed that it had burned through $1.12 billion over the first six months of this year. Given the number of projects the company is working on, such as the Model X arriving this fall as well as the Model 3 and next-generation Roadster, due in 2017 and 2019 respectively, it’s clear the company is going to run out of cash eventually without a capital injection.
ALSO SEE: Tesla Model X Deliveries Start September, Model 3 Design To Be Shown Early 2016
Well, Tesla has just filed to offer 2.1 million additional shares in order to raise approximately $500 million. The company said the move, which may reach $566.5 million if underwriters fully exercise their option to purchase additional shares, will help it fund the launch of new stores, service centers and Supercharger stations as well as the further development of the Tesla Energy business, the Model 3 and the ‘Gigafactory’ battery plant.
As Bloomberg points out, since its initial public offering in June 2010, in which it raised $226 million, Tesla has raised capital three times. The first was in May 2013 when the company raised $1.08 billion in equity and debt offerings, helping it to repay its $465 million Department of Energy loan nine years ahead of schedule. A second capital injection came in February 2014 when Tesla raised $2.3 billion in convertible debt, and finally in June of this year the company raised $750 million through a credit line.