Tesla Must Raise Another $1.5 Billion To Bankroll Model 3 Production

Tesla Must Raise Another $1.5 Billion To Bankroll Model 3 Production

The all-new Model 3 is on the path to become the biggest volume EV around and this may cause Tesla a lot of problems.

CEO Elon Musk said last week that the company was considering turning to debt markets to bring its mass market Model 3 electric car to market.

The debt issue will be used to strengthen the company's balance sheet and finance the rapid scaling of car production, and the senior unsecured notes will mature in 2025 although an interest rate has not been fixed yet.

Tesla announced on Monday that it intends to raise about $1.5 billion in a bond offering, as the US luxury electric automaker seeks to fund the production of its new Model 3 sedan.

The company's stock has added about 67% for the year to date, after peaking at a year-to-date gain of nearly 80% in mid-June.

The Long Range version of the EV saloon is priced at £33,500 and claims a 310-mile range, 5.1 second dash to 60mph and 140mph top speed.

Prior to the launch of the Model 3, Musk was asked on Twitter about the possibility of a Ludicrous Model 3, to which he simply replied "of course".

Anuncian probables lluvias para este jueves
La máxima prevista para la jornada de hoy será de 22º con cielo parcialmente nublado, según el Servicio Metereológico Nacional. La temperatura mínima para el sábado se ubicará en 12 grados y la máxima en 23.

With the number of preorders for the Model 3 now exceeding 400,000, Tesla Inc. must rapidly scale production if it wants to deliver the vehicles in an acceptable time frame.

"They are constantly spending on the next big innovation, whether the public knows what that is or not", James Albertine of Consumer Edge Research LLC.

"Those cancellations occurred over the course of more than a year", Musk revealed.

Tesla has shaken up the auto industry with its ambition to build a mass market for electric cars, posing a competitive threat to established carmakers.

Additionally, as a recent range test by Consumer Reports shows, some performance aspects of these high-end vehicles are incredibly comparable to features in more affordable models.

The company's debut in the junk-bond market marks a first for the cash-strapped Model 3 maker.