Tesla Motors (TSLA) Will Be Raising More Money For This

Tesla announced on Wednesday that the company plans to raise additional money this year to help fund development and production of its new Model 3 sedan and build out a giant battery factory.

In a registration statement filed with the U.S. Securities and Exchange Commission, Tesla plans to raise money through either an equity or debt offering.

Elon Musk, the electric car marker’s CEO has warned previously that the company may need a “small equity capital raise” next year.

Tesla recently announced that it closed the second quarter with nearly $3.25 billion in cash, but in July it repaid $678 million on a revolving credit line and planned to redeem $422 million in convertible notes.

Though this would be $2.15 billion in cash, Tesla has said it planned to spend $1.75 billion in the second half on plants and equipment. This would leave the company with only $400 million in cash.

For 14 straight quarters Tesla has posted operating losses and has had negative cash flow since early 2014.

Disclaimer: We have no position in Tesla Motors Inc. (NASDAQ: TSLA) and have not been compensated for this article.