Tesla (TSLA) Terafab plans point to inevitable capital raise — its first since 2020

Tesla’s “Terafab” semiconductor ambitions to launch this week carry an estimated price tag of $25-40 billion. The math is getting hard to reconcile with a company that generated just $6.2 billion in free cash flow last year while its earnings crashed.

Tesla hasn’t raised capital through a stock offering since December 2020, when it completed the last of three at-the-market offerings that brought in roughly $12 billion in a single year. The Terafab changes the equation entirely.

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