Mercedes Benz

Musk has told analysts and investors Tesla plans to pay its convertible debt with internally generated cash flow. Photo credit: BLOOMBERG NEW YORK -- Elon Musk's take-private plans for Tesla Inc. have evaporated, but the company's looming debt needs remain. With a debt load of about $10.5 billion and the possibility of an impending cash shortfall, Wall Street expects the luxury electric carmaker may need to raise funds before long. Musk, Tesla's CEO, said late on Friday he would heed shareholder concerns and no longer pursue a $72 billion take-private deal, abandoning an idea that stunned investors and may draw regulatory scrutiny. None of that has done anything to help it with a looming issue: cash. Tesla, which has had just one quarter of positive free cash flow since the fourth quarter of 2013, has $1.3 billion in debt coming due in the next 12 months. Meanwhile it has just $1.3 billion of cash on hand after backing out $942 million of customer deposits on cars. With a...