(Reuters) - Tesla Motors Inc (O:TSLA) said on Friday it must repay the principle on $411 million of 2018 convertible notes and expects to do so in the third quarter, adding to the cash pressure on the electric vehicle company.
"During the third quarter, we will be using substantial amounts of cash in connection with conversions of our 2018 Notes and we could pursue other actions to reduce our outstanding balance of convertible notes, which could require further outlays of cash," Tesla wrote in its quarterly filing with the U.S. Securities and Exchange Commission.
Tesla, which wants to buy solar panel installer SolarCity Corp (O:SCTY) for $2.6 billion in shares, also disclosed that the value of its secured assets had limited its ability to borrow under its asset-based revolving credit agreement with a syndicate of banks.
As it said in its previous quarterly filing in March, Tesla warned that the cost of building and operating its Gigafactory battery factory in Nevada could exceed the company's current expectations.