Tesla, Inc. [NASDAQ:TSLA] has remained in the bullish zone since it found support at $231 ending a bearish zone that had dominated the market for over a week following the rejection at $275. The stock has a bullish community rating this week, besides TSLA is in the green trending high 2.23%. The stock has a relative positive change of 5.24 while changing hands at $240.38. Moreover, the NLS volume stands at $8,159,069 at the time of writing. (NASDAQ:TSLA) closed the previous session at $235.14 while it has hit highs of $253.9631 today and touched lows of $232.17 in addition to a 52-week high of $387.46 and a low in the same period of $231.13.
After-hours trading for Tesla, Inc. saw the market dip by 0.45% with a relative change of -1.09 to trade at $240.38. The afterhours share volume at 19:59:52 (ET) closed at 45 with the most active after-hour trading taking place at 19:58:41 with the share volume hitting 45.
Elon Musk, the CEO of Tesla recently settled in court with the Securities and Exchange Commission (SEC) regarding the things that he can put on his Twitter account. The new deal has included specific topics that Musk must seek approval before sharing on social media in order to ensure that the interests of shareholders are protected. Some of these topics according to an expert lawyer in securities range from details of Tesla’s financial condition, all the potential or proposed mergers, for instance go private production sales, delivery numbers and public legal or regulatory findings among others.
In other news, Tesla is reportedly considering seeking additional funding in the wake of the CEO’s agreement with the SEC. Shares of the electric car company went up following the agreement, however, Tesla in its first quarter filing with the SEC said that it might need to seek alternative funding for the company’s growth. However, Tesla made it clear that the revenue generated from the business is enough to support investments as well as pay debts in the next twelve months.
The players at Wall Street have been scavenging for details of the funding, besides Musk said last week that “It’s probably about the right time” to raise capital. Musk made the comment after the electric car manufacturing firm posted a $700 million loss in the Q1 of 2019 alone.
In the past Tesla has been able to fund its investments and growth in various rounds of equity sales, issued convertible notes, it even raised $1.8 billion in Junk bond sale, Tesla also securitizes its vehicle leases in addition to solar asset-backed notes. According to David Whitston, an analyst at Moringstar:
“It’s all speculation but beyond the bond and equity markets Tesla could do a direct cash investment from an investor like a big private equity firm or a firm like SoftBank. Although, it is likely that Tesla will issue equity. Whitston continued “the share count is so small relative to big automakers and the cash raise would ease any investor anxiety that the market probably would not severely punish the dilution, if at all”.
Tesla is also projecting that its capital expenditure will go up significantly in the next three years starting from this year where the capital will grow from $2 billion to $2.5 billion and progressively increase from $2.5 billion to $3 billion in the next couple of years.