Tesla Wants To Raise Additional Cash This Year, For Model 3 And Gigafactory

Tesla Model 3 8 photos
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Tesla still has many plans on its agenda this year, and the company wants to raise more money to enable them.
Aside from the whole Autopilot situation, Tesla Motors wants to raise additional cash this year, so that it could fund the development of the Model 3 Sedan, and complete the construction of the Gigafactory.

Both are tremendous investments, and the company is willing to perform a debt offering or and equity proposal to obtain the supplementary funds it desires.

News of Tesla’s plans has emerged after Tesla Motors had filed a registration statement with the U.S. Securities and Exchange Commission, as Automotive News informs.

It is worth noting that the company had this plan in the making for some time, as Elon Musk, Tesla' CEO, had previously stated that the corporation might need a “small equity capital raise,” but his statement was referring to 2017.

According to reports, Tesla closed the second quarter of this year with almost $3.25 billion in cash, but the automaker is reportedly left with approximately $2.15 billion after it repaid a credit line and a redemption of $422 million in convertible notes.

While these financial decisions are not that important to car enthusiasts, it is relevant to note that the automaker had previously announced a plan that will include spending $1.75 billion in the second half of this year.

The sum would be required for its facilities and appropriate equipment, which would be needed for the Model 3, a car that is planned to enter production in 2017.

At the same time with the development of the Model 3 Sedan’s production version, Tesla has also been granted approval to purchase SolarCity, and the corporation is also in the process of building a massive facility in Reno, Nevada, which is called “Gigafactory.”

Analysts believe that the “small” capital infusions described by Elon Musk might have to be larger than previously explained by Tesla’s CEO. However, Musk never specified what “small” means to him.
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About the author: Sebastian Toma
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Sebastian's love for cars began at a young age. Little did he know that a career would emerge from this passion (and that it would not, sadly, involve being a professional racecar driver). In over fourteen years, he got behind the wheel of several hundred vehicles and in the offices of the most important car publications in his homeland.
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