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Tesla Motors Inc (TSLA) Stock Rise After Elon Musk’s ‘Product’ Tweet

Tesla CEO Elon Musk SpaceX TSLA
Tesla CEO Elon Musk Photo: Flickr

Tesla Motors Inc (NASDAQ:TSLA) CEO Elon Musk said in a tweet on Sunday that the company will unveil something on October 17. He tweeted that it will be a new product that most are not expecting, adding that it has nothing to do with the Tesla/SolarCity product unveiling on October 28.

When Musk teased the October 28 event, he said it would include joint products from Tesla Motors Inc (NASDAQ:TSLA) and SolarCity Corp (NASDAQ:SCTY), including a solar roof, an integrated second-generation Powerwall energy storage solution and a Tesla EV charger.

Now it seems like something new on top of all of the above will be revealed. It could be a new vehicle, possibly a Roadster 2.0, which many people are waiting for, or improvements to its autonomous driving features, speculates TechCrunch.

Tesla Motors Inc (NASDAQ:TSLA) recently launched its Autopilot 8.0 update, but earlier in the year, Musk suggested that it might come as a surprise to most people that the company is making progress on self-driving tech at an amazingly fast pace. The company has probably designed these events with a hope of reassuring investors that Musk’s proposed Tesla/SolarCity merger is actually going to benefit both companies.

In continuation to his tweet about the upcoming events, Musk also said that there would not be any need to raise either additional equity or corporate debt in the fourth quarter. This contradicts what some observers have suggested and Tesla’s own regulatory filing last week.

In a filing with the SEC on Friday, Tesla Motors Inc (NASDAQ:TSLA) said it “is currently planning to raise additional funds by the end of this year, including through potential equity or debt offerings, subject to market conditions and recognizing that Tesla cannot be certain that additional funds would be available to it on favorable terms or at all.”

As of June 30, Tesla Motors Inc (NASDAQ:TSLA) and SolarCity (NASDAQ:SCTY) had $3.3 billion in combined cash and cash equivalents, according to the financial statements in the filing. The company also said that after June 30, it expects to pay $426 million to holders of certain convertible debt securities in the third quarter. The June 30 cash balance reflected $678 million drawn from a credit line that was repaid in July, the EV firm disclosed.

It made this filing in connection with its pending merger with SolarCity (NASDAQ:SCTY). The filing stated that additional funds would be used for production equipment and to construct assembly lines for the Model 3.

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