Tesla said on Monday it would raise about $1.5 billion (€1.27 billion) through its first-ever offering of junk bonds as the USA luxury electric auto maker seeks fresh sources of cash to ramp up production of its new Model 3 saloon.
Tesla Inc., the American automaker is working on a backup plan if its long-standing promise to bring "Full Self-Driving Capability" onto roads falls short to meet the market demands, claimed the latest report, and published by Electrek. Even if Musk is not as successful as Wall Street estimates, he should sell more than enough cars to make the leverage, and the additional interest bill, easy for bondholders to swallow.
This information is essential for the investors who are estimating the cost of the Tesla Model 3 in order to model ways that Tesla can achieve its targeted 25 per cent gross margin on the new auto.
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 $1.4 billion through a convertible debt offering. Battery cell production for Tesla's Powerwall and Powerpack started at the Gigafactory in January, while production of Model 3 battery cells began in June.
Tesla’s “full self-driving capability” option on its website
Moody's assigned a B2 rating with a stable outlook. The team of five Italian Tesla lovers took this on as a challenge and using hypermiling techniques, they broke the June record.
The improvement underscores the fine line Tesla has to walk with when it comes to upgrades, Engadget said.
"If you think about the "early adopter" concept, the same may apply to this bond for certain investors", said Jon Duensing, director of investment-grade credit at Amundi Pioneer, which oversees $82.4 billion. That represents a massive increase over Tesla's current production rate-and it may aggravate tensions with workers, according to the The Daily Beast. The five members of the Italian Tesla Owners Club took turns driving the vehicle one-by-one. The lower base price of the Model 3, beginning at $35,000, is well shy of the usual Tesla cost of around $90,000.
Tesla had over $3 billion in cash on hand at the end of the June quarter, compared with $4 billion on March 31st.style="text-align: center;"