Why Tesla Needs Fresh Funding
As our chart illustrates, Tesla plans to invest roughly $3.5 billion in capital expenditures, i.e. property and equipment purchases, this year, nearly tripling last year’s cap ex spending. Having spent $1.5 billion in the first six months of 2017, the company expects to spend $2 billion in the second half of the year to boost vehicle and battery production, expand its retail network and add supercharger locations.
Tesla burned through more than $1 billion in cash in the second quarter of 2017 and is expected to continue doing so for the rest of the year. The company held $3.0 billion in cash and cash equivalents at the end of June 2017.
This chart shows the rapid increase in Tesla's capital expenditures.