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Two pillars of the entrepreneur’s empire are facing financial crunches as he seeks to combine the two companies through a controversial acquisition. The company is having difficulty tapping the public markets amid the proposed merger and is facing a liquidity squeeze, the filing indicated.

Tesla’s debt-to-equity ratio was 145.5% as of June 30, and SolarCity’s was 375.6%, according to FactSet.

Tesla has been able to regularly tap various sources of capital to sustain its operations. In the second quarter, it raised $1.7 billion from an equity offering, and its reserves also benefited from hundreds of thousands of $1,000 refundable deposits for its coming Model 3 vehicle.

Tesla said it would again tap debt or equity markets by the end of 2016 to cover its costs of merging with SolarCity, developing a cheaper electric car, producing batteries and expanding retail operations.

In another development. “Certain lenders appeared to be delaying funding certain financings of SolarCity as a result of the announcement of the Tesla proposal and that SolarCity was unable to access the equity capital markets as it regularly did as a result of the pending Tesla proposal,” the filing said.

http://www.wsj.com/articles/elon-musk-faces-cash-squeeze-at-tesla-solarcity-1472687133
 

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Likely not the last time Tesla will need to go to the market for more funding. So long as people keep believing Tesla will keep operating.
 

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Are those $1k deposits secured by anything?
 

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Are those $1k deposits secured by anything?
They go on the books as debt. They don't go into escrow or trust. People with deposits on merchandise that does not exist are called “unsecured creditors”, and are low on the totem pole in bankruptcy situations.

That probably cost a hundred million or so.
Also might have actually been Elon's head. Lol
That wasn't his rocket, but the animation is appropriate to the latest SpaceX news. Here's the actual boo-boo:


CNN Money said:
The rocket was carrying a satellite to be used by Facebook (FB, Tech30) to bring internet access to Africa, the Middle East, and Europe.
Facebook is in a partnership with French satellite firm Eutelsat Communications. The satellite, called Amos 6, was owned by Israeli company Spacecom.

"I'm deeply disappointed to hear that SpaceX's launch failure destroyed our satellite," Facebook CEO Mark Zuckerberg wrote in a post while traveling in Africa. He added that the satellite "would have provided connectivity to so many entrepreneurs and everyone else across the continent."
Bad week to be Musk or Zuckerberg, and even worse for the underwriter(s).
 

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Wow, if you count the seconds the camera was 2 miles away. Was not aware that anomaly is a synonym for catastrophe.
 
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