Tesla Inc. (TSLA) - Get Report said Monday that it could explore 'alternative' funding sources just days after Elon Musk reached a settlement with the Securities and Exchange Commission over the founder and CEO's use of Twitter to reveal material information on the clean energy carmaker.
In a 10-Q filing with the SEC published Monday, Tesla said that while it expects that cash flow from its current operations will be enough to cover its future expenditures, it could also look to other sources for funds. The view echoes comments from Musk to investors last week, who said the idea of raising fresh capital "has merit", even as he insisted now was not the right time to do so.
"We expect that the cash we generate from our core operations will generally be sufficient to cover our future capital expenditures and to pay down our near-term debt obligations, although we may choose to seek alternative financing sources," the company said in the SEC filing.
Tesla shares were marked 0.40% higher Monday to change hands at $235.61 each, a move that would trim the stock's year-to-date decline to around 28.6%.
Musk told analysts on January 30 that he was "optimistic about being profitable in Q1 and for all quarters going forward", before revising that guidance on February 28 to a "slight" loss over the first three months of the year.
Tesla reported an adjusted loss of $2.90 on sales of $4.54 billion, compared to a FactSet consensus of $5.42 billion and an adjusted loss of $1.15 per share. Additionally, Tesla said it produced roughly 63,000 Model 3 vehicles in Q1, approximately 3% more than the previous quarter.
Tesla said it will likely remain in the red for the second quarter, but vowed to return to profit over the second half of the year and stuck to its forecast of delivering 360,000 to 400,000 vehicles over the course of the year.
Musk told investors on a conference call Wednesday that there was "merit" to the idea of a capital increase, but noted that "I don't think capital has been constrained on our growth thus far and the type of those fund in fact, if there was a final constraint on growth would've faced capital before now."
"There's more work to do, and Tesla today is far more efficient operating organization than it was a year ago," Musk said. "We've made dramatic improvements across the board."
Musk reached a preliminary settlement with the SEC over late last week in a contempt case filed over his use of Twitter to disseminate material information about the electric car maker.
Under a consent agreement filed Friday, Musk agreed to changes in the original settlement reached with the commission last fall.
Under the consent order Friday, Musk agreed to "obtain the pre-approval of an experienced securities lawyer employed by the Company of any written communication" on a long list of topics. The list includes the company's financial position, any potential mergers or acquisitions, and production numbers or sales delivery numbers.
The settlement agreement, which still must be approved by the judge in the case, covers communications "made in any format, including but not limited to, posts on social media (e.g.Twitter)."