The entertainment company raised $1 billion on bonds with a 4.375 percent coupon, and it's been trading lately at about 4.2 percent. The Model 3's curb weight, in contrast, is 3,837 pounds.
According to Tesla CEO Elon Musk, the Model 3 will represent an enormous advance in architectural efficiency by requiring a fraction of the electrical wiring that is needed in its older vehicle, the Model S.
Tesla Inc said on Monday it would raise about $1.5 billion through its first-ever offering of junk bonds as the us luxury electric auto maker seeks fresh sources of cash to ramp up production of its new Model 3 sedan. The company burned through a record $1.16 billion in cash during the second quarter. Although the new gear includes a secondary node to enable more computing power, a spokesperson says 2.5 is really about adding "computing and wiring redundancy" that "very slightly" boosts reliability, Engadget said.
Tesla boss Elon Musk has rubbished claims made in a biography that he sacked his assistance of 12 years because she asked for a raise.
Tesla Inc.'s (NASDAQ:TSLA) CEO Elon Musk has always been a controversial and vocal mouthpiece for the electric vehicle company, often to the detriment of the company's stock.
To illustrate what's at stake, let's imagine that Tesla does not raise money today, and a year from now, something unforeseen comes up: a supplier goes under, a recall happens, or there is an natural disaster, and the company needs an additional $1 billion to fix the problem.
At the launch, Musk, however, warned that Tesla would face months of "manufacturing hell" as it increases production of the sedan. This measurable risk of default is one of the reasons why Tesla's bond offering is, by definition, a junk bond. That is $300 million more than Tesla initially planned to sell, a sign that demand for the debt is high. Let's say you placed an order for the Model 3 back in November previous year.
While pitching to potential investors, Musk is also busy in making sure that the automobile market remains interested in the upcoming Tesla Model 3.