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.