Tesla Plans To Raise $1.15 Billion As Model 3 Production Nears

Tesla Plans To Raise $1.15 Billion As Model 3 Production Nears
Blomst / Pixabay

Tesla is working hard to launch its affordable Model 3 this year, but to do that, it seems the company needs additional funds. Thus, the EV firm is expected to raise about $1.15 billion in order to ramp up its launch plans.

Additional capital to ramp up Model 3 production

Tesla will offer $250 million of common stock and $750 million in convertible senior notes due 2022 in underwritten public offerings worth $1 billion. Further, the company is offering a 30-day option to the underwriters so that they can purchase an additional 15% of the offering amount on top of it. This way, the total funds raised will be somewhere around $1.15 billion.

Tesla is looking to shell out somewhere in the range of $2 billion and $2.5 billion on capital expenses over the first half of the year. To do this, the company needs fresh capital to support Model 3 mass production, which will kickstart in July.

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There are reports of Tesla missing its production timeline again, as it is apparently not able to finalize the design of the Model 3. However, the latest prototype video suggests differently.