Home Electric Vehicles Tesla seeks to raise another $1.5billion for Model 3 production

Tesla seeks to raise another $1.5billion for Model 3 production

1 min read
0

As Tesla just launched the Model 3 recently, the company is still searching for more funds to fund the production of the car. Tesla aims to raise about $1.5 billion in a bond offering in order to ramp up production as it receives close to 1,800 new reservations a day since the launch.

 

The Model 3 is Tesla’s foray into an affordable mass-market electric car which starts off at a base price of $35,000. The company is going through the painful journey of what Musk says is manufacturing hell as it builds up its capital and production facilities to keep up with demand.

At the moment, Tesla is still not profitable and is burning through cash, although, not as quick as Uber who burned through $2.8 billion in 2016. Tesla currently has about $3 billion in cash at the end of June and they normally like to keep enough cash in case of market shifts and to also pay off vendors and suppliers.

At the moment, Tesla continues to be the shining beacon to push electric cars further into the future.