Tesla admits it may have to raise more funding

The company expects capital expenditures to reach up to $3 billion for the next few years.

Tesla has admitted that it may be preparing to raise additional capital as the company pushes forward with multiple development projects and factory construction in Shanghai,

Speaking to analysts following Tesla's disclosure of a $700 million loss for the first quarter of the year, CEO Elon Musk acknowledged "there is some merit" to raising more funds.

"It's probably about the right time," he added.

Tesla currently holds more than $2 billion in cash, falling short of its capital expenditure forecast for the next two years. The company has not detailed which type of fund-raising strategy it will likely employ.