The electric car makers have been borrowing more money than before which has raised concerns from analysts.
Tesla Motors is in the news again, this time for a completely different reason. On Friday, June 12 the auto making giants announced that it has successfully managed to receive a facility that has a worth of around $500 million. This property that has been taken by the electric car makers is going to prove as a useful entity to cover up corporate services and purposes that are for the department of handling capital. This just shows how much the hybrid car makers are currently seen to be taking more and more money loans which is bringing about a negative effect on the analysts who were previously holding a bullish stance about the activities of the firm.
Currently, it will be seen that the Tesla Motors has been carrying out activities which has made analysts and investors quite bullish about the future of the company. The massive sales and growth that is being experienced by the firm lately has made the analysts quite positive but the fact that the smart car makers are taking too much of loans is not going to take it anywhere. By the time it was made public that the electric car producers are borrowing money has not turned out to be a surprise for the analysts as it has been made common that the firm is looking for cash inflows to run the firm in a better way.
After the first quarter of the current financial year got over, it was announced by the firm that the cash revenue Tesla owns has come around at $1.5 billion. However, in the upcoming quarters, the high tech car producers have planned to spend around that much only which shows that more money is needed to carry out further tasks. The massive expenditures that are expected to be made by the firm are because of the upcoming launch of the Model X cars that the company is seeking to make.
Furthermore, the Gigafactory that is reportedly being built up in Nevada for the production of ion-lithium batteries is also going to need a massive amount of money too. Therefore, analysts are of the opinion that hence it is vital for the firm to take the loads to make sure the business activities are being carried out in the perfect way.
As for the credit facility, it has become evident that the firm has received it from around five banks, while Tesla has made plans of doubling the money it receives from $250 million to around $750 million. The firm has also been found in possession of letter of credit of around $100 million.
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