May 2, 2019

Tesla plans $2 billion capital raise

Illustration: Sarah Grillo/Axios

Tesla announced plans today to raise roughly $2 billion as it prepares new product launches and grapples with disappointing earnings. The company's stock was up 5% in pre-market trading.

The big picture: "Tesla intends to use the net proceeds from the offerings to further strengthen its balance sheet, as well as for general corporate purposes," the company said in announcing the offering of stock and debt.

Why it matters: It comes a week after the Silicon Valley electric automaker announced a $702 million first-quarter loss. The capital-raise includes a $10 million stock purchase from CEO Elon Musk.

It arrives as Tesla seeks to speed up sales and deliveries of its Model 3 sedan, while planning to begin deliveries of the Model Y crossover in the fall of 2020. The company is also developing an electric semi-truck.

Go deeper: Tesla's profitability winning streak is over

Go deeper

Jim VandeHei, Margaret Talev

The cost of going after Bloomberg

Illustration: Eniola Odetunde/Axios

Here's the growing dilemma for 2020 Democrats vying for a one-on-one showdown with frontrunner Bernie Sanders: Do they have the guts — and the money — to first stop Mike Bloomberg?

Why it matters: Joe Biden, Pete Buttigieg, Amy Klobuchar and Elizabeth Warren all must weigh the costs of punching Bloomberg where he looks most vulnerable: stop-and-frisk, charges of sexism, billionaire entitlement. The more zealous the attacks, the greater the risk he turns his campaign ATM against them.

Go deeper4 hours ago - Politics & Policy

Courtenay Brown, Danielle Alberti

How Trump’s economy stacks up

Source: "Presidents and US Economy", Trump figures through 2019 courtesy of Alan Blinder; Note: Data shows real GDP and Q1 growth in each term is attributed to the previous president; Chart: Axios Visuals

Average economic growth under President Trump has outpaced the growth under Barack Obama, but not all of his recent predecessors.

Why it matters: GDP is the most comprehensive economic scorecard — and something presidents, especially Trump, use as an example of success. And it's especially relevant since Trump is running for re-election on his economic record.

Go deeper5 hours ago - Economy & Business

Axios

Coronavirus cases rise as 14 American evacuees infected

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's NHC; Note: China refers to mainland China and the Diamond Princess is the cruise ship offshore Yokohama, Japan. Map: Danielle Alberti/Axios

14 Americans evacuated from the Diamond Princess cruise ship tested positive for the novel coronavirus before being flown in a "specialist containment" on a plane repatriating U.S. citizens back home, the U.S. government said early Monday.

The big picture: COVID-19 has now killed at least 1,770 people and infected almost 70,000 others. Most cases and all but five of the deaths have occurred in mainland China. Taiwan confirmed its first death on Sunday, per multiple reports, in a 61-year-old man with underlying health conditions. Health officials were investigating how he became ill.

Go deeperUpdated 5 hours ago - Health