[gamblor956]

No, the headline is accurate.

Of the $2.4 billion raised, about half must go toward servicing existing debt, and with the money they already had in the bank (about $900m), they have about $2.1b liquid cash to see them through the next 10 months, assuming the same burn rate (losing $200m/month).

[mikeash]

Isn’t that double counting the debt service payments?

[new_realist]

No, they have two large balloon payments due in 2019 from prior debt.

[confiscate]

I thought they had 2B in the bank before the raise.

Granted, I am sure Elon exaggerates numbers, but shouldn't that be factored in?

[trca]

Tesla had ~$2.5B in the bank before the capital raise, and are going to be receiving a multi-hundred million to $1B payment from Fiat Chrysler (https://www.ft.com/content/7a3c8d9a-57bb-11e9-a3db-1fe89bedc...) to offset their emissions. They have plenty of money in the bank for the foreseeable future, but they won't if they don't cut their expenses or increase sales. To me, this just looks like a company exiting startup wild-west spending and maturing into a full-fledged company with hard-set processes for company expenses.