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Tesla Will Need Over $10 Billion In New Capital By 2020: Goldman

• by Tyler Durden

Elon Musk may be certain that Tesla will not need to raise capital again, but this morning Goldman disagreed violently, and in a note by bank analyst David Tamberrino, it sees "Tesla coming back to the debt/equity markets to fund growth", and forecasts that between Tesla's current operations, anticipated new product spend, and incremental capacity additions, the electric car company would need over $10bn in external capital raises and debt re-financing by 2020 (and that assumes the NHTSA, which is now probing three separate Tesla incidents, does not enforce a recall).

The good news: according to the Goldman analyst Tesla still has full access to capital markets, and has several options available to fund its growth targets and refinance maturing debt and raise incremental funds, meaning that Musk may fund the massive capital shortfall through multiple avenues, "including new bond issuance (secured and/or unsecured), convertible notes, and equity."

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