DETROIT – Shares of Tesla Motors Inc. and SolarCity Corp. are up after the head of both companies said they won't have to raise money this year.
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Elon Musk tweeted over the weekend that the money-losing companies won't need to raise equity or corporate debt in the fourth quarter despite a proposed merger and other potentially costly moves.
Musk said Tesla will introduce a new product on Oct. 17. Its lower-cost Model 3 is also due out next year.
Musk — who is the chairman of SolarCity and the CEO of Tesla — proposed in June that Tesla acquire SolarCity. Shareholders must still vote on the merger, which has been delayed by multiple lawsuits.
Tesla shares rose 2.8 percent to $202.17 in afternoon trading. SolarCity shares were up 5.7 percent to $19.75.