Citigroup and Goldman Sachs, who are underwriting Tesla's latest effort to raise $2 billion in new funds, held a "broad investor call" on Thursday, where CEO Elon Musk and CFO Zach Kirkhorn answered brokers' questions about their plans for the electric vehicle maker.
According to two invitees who attended the call, CEO Elon Musk talked up Tesla's self-driving strategy right off the bat, expanding what he and other execs said at a recent event for investors that the company dubbed "Autonomy Day. "
Musk confidently told investors on the call that autonomous driving will transform Tesla into a company with a $500 billion market cap, these people said. Its current market cap stands around $42 billion. He also said that existing Teslas will increase in value as self-driving capabilities are added via software, and will be worth up to $250,000 within three years.
The call came as the company is looking to raise $650 million in equity and $1.35 billion in convertible bonds. Filings indicate that Tesla plans to use the capital for general corporate purposes. On the call, Musk said Tesla would be able to fund its business needs through cash flow, but that it was wise to have a buffer in case of a recession or weak global auto demand. [Read More]
Published @ May 2, 2019