Snakes put the brakes on Tesla: Work on new Berlin electric car factory stalls because of sleeping reptiles
Tesla has revealed plans to raise £3.8billion as its work to build a German factory ran into trouble – because of hibernating snakes and lizards.
The electric car maker, which is run by Elon Musk, wants to capitalise on the huge rise in its share price this year by selling new stock ‘from time to time’ at market prices.
But as analysts hailed the fundraising as a sign of new-found strength, the US company’s plans for a flagship European production line were delayed due to concerns about reptiles.
Spending money: Tesla, which is run by Elon Musk (pictured), wants to capitalise on the huge rise in its share price this year by selling new stock ‘from time to time’ at market prices
The firm has been ordered by a German court to suspend forest clearing for its site in Berlin after activists claimed that cutting down trees could endanger sand lizards and smooth snakes.
It comes after it was previously made to relocate endangered bats to press ahead with the scheme.
The administrative court in Frankfurt an der Oder said authorities would now have to be consulted about the latest claims before work can resume.
It is another blow to Tesla’s first European factory, which it announced in November 2019 and hopes to have up and running by July 2021.
Tesla’s plans for a flagship European production line have been delayed due to concerns about snakes and lizards
That is looking increasingly challenging, after Musk, 49, reportedly fired the top engineer in October.
He is now said to be taking personal interest in hiring people to get the work done on time. Tesla built its factory in Shanghai in just 11 months.
However, its decision to raise more cash yesterday was hailed by analysts as a sign that its finances are improving.
The firm has struck a deal with ten banks, including Goldman Sachs, Bank of America, and Morgan Stanley, to carry out the offering. They will act as sales agents and earn commission, or buy the shares themselves.
The move could boost Tesla’s cash pile to £15billion, analysts said, helping it to pay down borrowings and invest in equipment.
Dan Ives, of Wall Street research firm Wedbush Securities, said: ‘Musk and his red cape are raising enough to get the balance sheet and capital structure to firm up its growing cash position and slowly get out of its debt.’
Tesla’s shares were yesterday about $642 each, up 660 per cent so far this year.
It has been boosted by the opening of a new factory in Shanghai, strong demand for its Model Y crossover car and advances in battery technology.
It is the most valuable car firm in the world, worth more than rivals Toyota, Volkswagen and General Motors combined, despite producing a fraction of the number of cars they do.
Last month the firm was added to the S&P 500 index, ensuring its stock would be snapped up by tracker funds.
The latest move to raise cash comes after plans to raise £3.7billion in September to pay down debts.