Tesla has announced that its fund-raising campaign to support the launch of the Model 3 was successful.
Instead of simply raising just enough to help fund the production launch of the Model 3, Tesla has managed to gather $1.2 billion. At this point, you are probably wondering what that amount means for a company like Tesla, and we are here to clarify that aspect.
According to the carmaker, the sum exceeds its internal expectations and plans by 20%, which means that the Model 3 should follow its launch schedule without any concerns.
The future of Tesla’s profitability will be dictated by the commercial success of the Model 3, which makes the most affordable car ever offered by this brand its most important product in years.
Things are promising for the company when pre-orders are concerned, but many fear that the automaker will not manage to get the Model 3 in showrooms on time.
Elon Musk, the CEO of Tesla, previously stated that things would be “close to the edge” when liquidities are concerned, but this announcement should let everyone know that the brand from Silicon Valley is on track even from the financial point of view of the Model 3 launch.
The founder of Tesla even acquired stocks to help the fundraising process, Automotive News reports. Elon Musk was not the only investor to buy Tesla stock, as the company traded 1.3 million common shares at $262 apiece. Another $850 million were obtained by selling senior convertible notes due in 2022.
Tesla has previously suffered from delays when launching new models, and many expect the same to happen with the Model 3. Unlike the previous automobiles offered by this automaker, the introduction of this product comes at a right time for the company from a financial point of view, and the early issues that held back production for the Roadster, Model S, and Model X should have been eliminated by now.
According to the carmaker, the sum exceeds its internal expectations and plans by 20%, which means that the Model 3 should follow its launch schedule without any concerns.
The future of Tesla’s profitability will be dictated by the commercial success of the Model 3, which makes the most affordable car ever offered by this brand its most important product in years.
Things are promising for the company when pre-orders are concerned, but many fear that the automaker will not manage to get the Model 3 in showrooms on time.
Elon Musk, the CEO of Tesla, previously stated that things would be “close to the edge” when liquidities are concerned, but this announcement should let everyone know that the brand from Silicon Valley is on track even from the financial point of view of the Model 3 launch.
The founder of Tesla even acquired stocks to help the fundraising process, Automotive News reports. Elon Musk was not the only investor to buy Tesla stock, as the company traded 1.3 million common shares at $262 apiece. Another $850 million were obtained by selling senior convertible notes due in 2022.
Tesla has previously suffered from delays when launching new models, and many expect the same to happen with the Model 3. Unlike the previous automobiles offered by this automaker, the introduction of this product comes at a right time for the company from a financial point of view, and the early issues that held back production for the Roadster, Model S, and Model X should have been eliminated by now.