Tesla in mammoth fundraising bid to step-up new Model 3 production

Tesla in mammoth fundraising bid to step-up new Model 3 production”

In a statement on Monday (7 August), the US carmaker said it will raise the funds via the selling of bonds to institutional investors.

Some experts have been worried that the launch of the Model 3, whose base cost is $35,000, would guide some prospective buyers far from the Model X SUV to that lower-priced sedan.

Tesla burned through $1 billion in the second quarter preparing for the arrival of the Model 3, which is central to the company's growth strategy and broader goal of popularizing electric cars.

Chief financial officer Deepak Ahuja said last week capital spending by the company has hit "historic highs" - about $100 million a week.

Gigafactory 1 started battery cell production for Powerwall and Powerpack in January and in June, they started Model 3 battery cell production. Musk himself took to Twitter to celebrate and congratulate the group over the verified achievement, posting on Saturday, "Officially verified as the first production electric car to exceed 1000km on a single charge!" This is more than double the official mileage the car is rated at.

CEO Elon Musk outlined an aggressive growth plan to analysts last week, adding up to four more "gigafactories", including facilities in China and Europe.

Monday's debt offering marked Tesla's maiden voyage into the junk-bond market.

The faster pure-electric BMW M3 rival meanwhile, is tipped to come with dual motors, potentially lifting its powertrain from the Model S P110D. It had estimated "quarter one and quarter two" deliveries of almost 47,000 to 50,000.

Tesla stock rose sharply after the event to near record levels. The convertible debt sold in the past yields between 0.25 percent and 2.375 percent and can be exchanged for equity at certain prices.

"To complete the 1,078km record distance, we used 98.4 kW/h of electricity, which is equivalent to eight liters of gas", said Luca Del Bo, president of the club.

Сomo este

Más reciente