Tesla Will Profit $500B On Self-Driving Vehicle Says Elon Musk
May 3, 2019 | Friday
During a "broad investor call" of Tesla on Thursday CEO Elon Musk boldly said to its autonomous driving will bring a $500 billion market cap to the company. Goldman Sachs and Citigroup, who both pledge Tesla's recent effort to raise $2 billion within new funds held the call. They've invited CFO Zach Kirkhorn to answer the brokers' inquiries on their plans regarding its electric vehicle production.
According to the invitees, Musk essentially talks about Tesla's self-driving strategy and his goals. As of now, according to Musk Tesla's market cap is at about $42 Billion. Musk also added that the current Teslas are to increase in value. Mostly because of driverless car's capabilities can be added via software, and may worth to $250,000 for the next three years.
The "broad investor call" was driven by the Tesla's plan to raise around $650 million worth of equity and a $1.35 billion convertible bonds. The filings show that the company plans to use the said financials on its general corporate purposes.
During the call, Musk said his company might be able to support its business needs via cash flows. It was smart putting buffer within the mood of a weaker global auto demands.
Meanwhile, Kirkhorn reminds the investors during the call that there is nothing changed within Tesla's quarter-two outlook. According to Kirkhorn, Tesla still anticipates presenting 90,000 to 100,000 vehicle within the second quarter, with an aim to produce 360,000 to 400,000 vehicles total in 2019.
On the unaccustomed basis, the company has already lost a $702.1 million ($4.10 per share) during 2019's first quarter. On Thursday, Tesla's share incline for more than 4% upon the announcement that there are new solicitation funding. However, the shares still down for more than 25% year to date.
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