Tesla Changes Its Mind on Raising Capital
Just two weeks ago, Tesla (NASDAQ: TSLA) CEO Elon Musk casually dismissed the idea of raising capital after the electric-car maker reported strong fourth-quarter earnings that included a second consecutive quarter of profits on a GAAP basis. The stock had already started its recent meteoric climb and was approaching $600, and analysts wondered if Tesla should opportunistically raise capital.
Musk said Tesla was "spending money as quickly as we can spend it sensibly," yet was still generating positive cash flow -- including $1 billion in positive free cash flow during the fourth quarter. "So in light of that, it doesn't make sense to raise money because we expect to generate cash despite this growth level," the eccentric billionaire added.
Musk has now changed his mind.
Source Fool.com
