Tesla Looking To Raise $1.5 Billion As They Boost Model 3’s Production

Tesla is looking to raise $1.5 billion in a bond offering as it’s planning to ramp up production of the Model 3.

The electric car company already has around half a million pre-orders on the Model 3’s waiting list, with Elon Musk saying that the next six months will be “production hell” for the company.

“Tesla intends to use the net proceeds from this offering to further strengthen its balance sheet during this period of rapid scaling with the launch of Model 3, and for general corporate purposes”, the company said in a statement.

Tesla has already gathered more than $3 billion, with cash expenditures for the second half of 2017 expected to total at about $2 billion, Jalopnik reports.

The reason behind this new additional funding is because Tesla wants to get a cash cushion for unexpected events, which makes sense at the stakes for the EV maker are higher than ever.

Elon Musk admitted that demand for the Model 3 is so big that people placing their deposits now, will not get it before late 2018.

PHOTO GALLERY

  • BernardP

    When Tesla implodes, it will bring the stock market down with it. Then after the stock value is destroyed, Apple will sweep in to pick up the spoils and get itself in the car business.

BMW 3-Series Driver Triggers Pile-Up In California

This video shows why it is so important to drive defensively in order to stay safe.

Koenigsegg Releases Onboard Footage Of Regera’s 0-400-0 km/h World Record

It might be a big overexposed but this is the onboard video showing the Koenisegg Regera setting a new record.

New VW T-Roc R Wants To Become The Default Hot Hatch On Stilts

The hottest version of the VW T-Roc has all the right oily bits to make it happen.

McLaren 620R Street-Legal Racer Spied Undisguised, Will Be Offered By Invitation Only

Essentially a road-going version of the 570S GT4 race car, the McLaren 620R is the ultimate Sports Series model.

Jaguar I-Pace Bizarrely Locks Up Front Wheel During Moose Test

The Jaguar I-Pace’s ESC system freaked out when put to the moose test.

Mercedes Wins 2019 Formula 1 Constructors Title At Suzuka

Mercedes-AMG Petronas has claimed the constructors championship in F1 with four races left to go.

Genesis USA’s New Boss Hails From Audi – Just In Time For SUV Expansion

Genesis USA’s new CEO is Mark Del Rosso, who left Audi of America in May after just six months.

Daimler Recalling Loads Of Diesel Vehicles, Including 260,000 Sprinter Vans

Daimler is recalling hundreds of thousands of diesel-powered models over emissions issues.

Chevrolet Introduces $3,000 Camaro Discount For Current Ford Mustang Owners

Sales of the Chevrolet Camaro hit a snag in the third quarter, prompting this new incentive.

Seat Ready To Reinvent Itself, Could Be Rebranded As Cupra, Launch In North America

By 2025, the VW Group’s Spanish division could launch the first vehicles in North America, targeting premium brands like Alfa Romeo.