Tesla seeks $1.5 bn junk bond issue to fund Model 3 production

Tesla Desperate for Cash in Push To Get Model 3 to Masses

In 20 years, Tesla is the world's number one car manufacturer

During a conference call on Monday with financial analysts to discuss a new bond offering, CEO Elon Musk let slip that his original estimate of annual Tesla Model 3 totals was about 200,000 short - now he's saying that the all-electric vehicle company will likely produce 700,000 units of the Model 3 annually one day.

However, Musk conceded that the biography overall was not entirely flawed, calling it "mostly correct", but saying that the story was "rife with errors and never independently fact-checked" despite his request for that.

The fact that Tesla only asks for $1,000 to pre-order the Model 3 explains why many weren't reluctant to purchase the vehicle but it resulted in a long queue for the buyers to bear.

Tesla aims to produce 100 Model 3s this month but wants to ramp up production to 5,000 cars produced weekly by December of this year. In March, the company raised $US1.4 billion through a convertible debt offering.

First off, the major news is that we know the exact number of Tesla Model 3 reservations - while talking with analysts about the Supercharger network, CEO Musk specifically started discussing Model 3 figures. The company, despite receiving a "junk" rating from credit agencies, could wind up paying less than five percent on the issue. According to the latter, "two or three" units of this type will emerge from land "within a few years", in the United States, he said. Tesla has said all-wheel drive will become available in the future. That represents a massive increase over Tesla's current production rate-and it may aggravate tensions with workers, according to the The Daily Beast. But remarkably, Tesla didn't wish to state just how much power the vehicle makes and how huge the battery pack is. Meanwhile, Tesla's pricier Model S and X will remain important - especially in the near term as the company looks for gross profits from these vehicle sales to help contribute to cash flow.

It's likewise fascinating to see how much less the Model 3 weighs compared to the Model S. Weighing in at 3,837 pounds, the Model 3 is nearly 1,000 pounds lighter compared to the 4,647-pound Model S. It's still no light-weight, however that's a considerable distinction.

Tesla had over $US3 billion in cash on hand at the end of the June quarter, compared with $US4 billion as of the previous quarter and $US3.25 billion a year earlier.

Latest News