• News
  • Markets

Tesla Raises Additional Funds for Model 3 Debut

Tesla Raises Additional Funds for Model 3 Debut

Anyone looking to invest in Tesla, the curious electric auto company run by Elon Musk got some good news on Tuesday when, in a move to raise capital for an expectedly busy year, it made available $250 million in common stock.

The company will offer $250 million of common stock and $750 million in aggregate principal amount of convertible senior notes due in 2022.

In addition, Musk is also participating in this public offering by personally picking up $25 million of common stock.

In last week's earnings call, Musk said Tesla has enough capital to reach the market with the Model 3, but its cash situation would be "close to the edge". That's evidently not true. According to the businessman, the company "expects to finalize the search for a location for the Gigafactories 3, 4 and possibly 5 (the 2 is the solar power station in New York)".

Elon Musk must to raise at least US$1.15 billion more to bring his more affordable Model 3 to market.




Tesla's Model 3 full production is set to kick-in this year, along with the pre-production last February, citing a temporary production line freeze in order to smoothen the processes at Fremont factory for the latest model.

Analysts at UBS, however, took a different view on the raise, which they said in a note won't be enough to "fully address liquidity concerns". Which explains why the Silicon Valley-based company needs to raise fresh capital.

The chart below illustrates the Tesla Motor Inc. stock's movement amid decisions of raising $1 billion funds for the Model 3 production. Tesla lost about $666 million dollars on revenue of about $7 billion in 2016.

The base model Lucid Air will have "all hardware necessary for autonomous driving", according to Lucid, but the company steers clear of saying whether it will cost more to activate the feature.

These rumors were confirmed by Tesla, herself in an after-market filing of the March 1 SEC - the U.S. regulator of stock market operations - but in fact they are prototypes of the Model 3 beta. The stock closed during normal trading hours at $255.73 a share, down $2.27 for the day, then jumped 2.2% to $261.40. Underwriters are being given the option to buy an additional 15% of each offering, so the total value of the capital raise will be well over $1 billion.

Leave Your Comment

Leave Your Comment


Latest News

  • Larry Sanders, Cleveland Cavaliers Reportedly Agree to Contract

    Larry Sanders, Cleveland Cavaliers Reportedly Agree to Contract

    According to ESPN's Chris Haynes , the Cleveland Cavaliers have agreed to a deal with free agent center Larry Sanders . The 6-foot-11, 230-pound center averaged 6.5 points and 5.8 rebounds per game during his career.
    Conte: Mind games don't make you win

    Conte: Mind games don't make you win

    That was the last time EFL Cup winners United lost in the league, something referenced by the Chelsea website on Friday. We are showing good football, but for sure it will be a really tough game against a good team ".

    'A Day Without a Woman' event planned for Arizona State Capitol

    The District of Columbia school district said that it expected students and staff to be in school on Wednesday. Not everyone in Denver observed International Women's Day by rallying.
  • TX House Committee holds hearing on bill to ban 'Sanctuary Cities'

    TX House Committee holds hearing on bill to ban 'Sanctuary Cities'

    A bill that would take away some powers from the attorney general and give them to the governor likely will not pass this session. If people decide to do that, Senator Estes says it would allow them to use whichever gender is marked on the certificate.
    Akhilesh Yadav submits his resignation to UP Governor Ram Naik

    Akhilesh Yadav submits his resignation to UP Governor Ram Naik

    As per sources, his role in Samajwadi Party rests on the question on who the 47 odd newly elected legislators will ally with. Both Shivpal and Mulayam had objected to an alliance with the Congress, which has proved to be a disastrous alliance.
    Staples, Inc. (SPLS) Given Average Recommendation of

    Staples, Inc. (SPLS) Given Average Recommendation of "Hold" by Brokerages

    Staples, Inc . ( SPLS ) revealed that results for its fourth quarter and fiscal year ended January 28, 2017. The company said earnings will be 15 cents to 18 cents a share in the first quarter, excluding some items.
  • Kidnapped woman escapes trunk of moving auto

    Kidnapped woman escapes trunk of moving auto

    When the man drives off, a woman can be seen jumping out of the vehicle's boot while it is still moving. According to AL.com , the 25-year-old woman was abducted at gunpoint from her apartment in Avondale.
    Turkey-Netherlands row shows no sign of ebbing

    Turkey-Netherlands row shows no sign of ebbing

    He added, "If tension will increase (between the two countries) because of my visit, then let it increase". Turkish attempts to hold rallies in Germany, Austria, Switzerland and the Netherlands have been blocked.
    Two Fault Lines In Southern California Are Actually One Big One

    Two Fault Lines In Southern California Are Actually One Big One

    The connections - or stepovers - between the main parts of the faults are less than 2Km wide. She is now a postdoctoral fellow with the U.S.
  • Projected first-round pick Sidney Jones suffers Achilles injury during Pro Day

    Projected first-round pick Sidney Jones suffers Achilles injury during Pro Day

    Virtually every mock draft has Jones going in the first round, with some forecasters having him off the board in the Top 10. The 6-foot, 180-pound Jones had eight interceptions in three seasons with Washington, including a career-high four in 2015.
    Elon Musk Bets He Can Fix Australia's Blackout Crisis in 100 Days

    Elon Musk Bets He Can Fix Australia's Blackout Crisis in 100 Days

    He is also chairman of SolarCity (Swiss: SCTY.SW - news ), a solar panel installer recently bought by Tesla . The CEO said if he is not able to complete the project within 100 days, he would not charge a penny.
    Gboard can now translate as you type

    Gboard can now translate as you type

    However, that is not enough for the company and it was to delve even deeper into your smartphones that it launched Gboard . As you start typing, the Google Translate technology will instantly output your phrase in a language of your choice.
  • Congressman demands to know whether Trump knew Flynn took Russian Federation  money

    Congressman demands to know whether Trump knew Flynn took Russian Federation money

    Last week, it was revealed that Flynn also was lobbying for a Turkish firm late previous year , earning $530,000. House Intelligence Committee Ranking Member Elijah Cumming, D.
    Snow causes flight cancellations, delays at St. Louis Airport

    Snow causes flight cancellations, delays at St. Louis Airport

    Of the remaining counties, all but Cape May will be under a winter storm warning from Monday evening through most of Tuesday. The markets affected include New York City , Newark, Boston, Washington D.C, Philadelphia and Baltimore.

    Team Israel suffers first loss in World Baseball Classic

    Since the Netherlands held a 10-run lead after the seventh, Israel had three more outs to make a comeback. Israel is now 1-1 in the second round of the 16-team quadrennial tournament and 4-1 overall.
  • Federal court rules 3 GOP congressional districts discriminate against Hispanics

    Federal court rules 3 GOP congressional districts discriminate against Hispanics

    The majority ruled the districts, drawn in 2011 , violated both the 14th Amendment and the federal Voting Rights Act . The panel found that Republicans had used race as a motivating factor in gerrymandering the districts.
    Starbucks reveals spring themed cups

    Starbucks reveals spring themed cups

    Their first seasonally inspired cups arrived over 20 years ago making the colorful cups a bit of a tradition. We bet you can easily conjure that white cup with the green mermaid logo to your mind's eye in an instant.
    'Dreamer' Arrested After Press Conference Set for Release From Detention

    'Dreamer' Arrested After Press Conference Set for Release From Detention

    Danielle says that her father has never been charged with a crime here in the USA , her brother, just a shoplifting charge. Shortly after, her friend was pulled over by US Immigration and Customs Enforcement (ICE) and Vargas was detained.

Breaking News



Recommended

Arena Picks 24 Ahead of World Cup Qualifiers

Michael Orozco is the most experienced right back, and Cameron also is a possibility - even though he plays in midfield for Stoke. Top young talent DeAndre Yedlin and Eric Lichaj would have made the roster if they were not now injured, a U.S.

Nicola Sturgeon launches formal bid for second Scottish independence vote

Theresa May rebuffed Nicola Sturgeon today by saying "now is not the time " for another Scottish independence referendum. Sturgeon said she was not turning back on further discussions should United Kingdom government change its mind.

The Bachelorette season 13: Premiere date hopes, filming for Rachel Lindsay's journey

You never know with the producers what they're going to decide to do before the show premieres. "What I did is I booked us some flights to Vegas for us to elope".

Atletico Madrid forward Fernando Torres returns to training after head injury

Bayer will be without Lars Bender, Stefan Kiessling, Omer Toprak and Jonathan Tah on Wednesday. I always tell them this competition is unsafe and not because of what happened in Barcelona.

The New Travel Ban Goes Into Effect Tonight

The revamped travel ban explicitly exempts holders of valid visas or legal permanent residents, as well as citizens of Iraq. Fourteen state attorneys general and 58 technology companies have filed amicus briefs supporting Hawaii's challenge.

Kushner family company in possible Chinese deal

Asked about the deal at a news conference the White House spokesman Sean Spicer referred questions back to the Kushner Companies. According to details of a proposed agreement viewed by Bloomberg , Anbang appears ready to step in and save the day.

Chinese president to meet with Trump

It will be the first time the men will meet in person, and comes at a time of heightened tensions in east Asia. However, a senior administration official told CNN the plans are tentative.

BJP scores massive victory in Uttar Pradesh; leaders thank PM Modi

The situation is such that in states like UP there are no tall leaders who can revive the party anymore. It seems the voters turn on the Congress in places where Rahul spearheads the party's poll campaign.

Another legal challenge to revised Trump travel ban

The states of Washington and Minnesota , as well as the Justice Department, have only filed notices. A USA district judge will not rule on the revised executive order from President Donald Trump .

Avian flu detected at Wisconsin farm, 2nd case in US

The Giles County flock was killed and buried, and the farm remains under quarantine, as does the Lincoln County farm. On March 6, routine screening tests at the Giles County location showed the presence of bird flu in the flock.