Facing Cash Burn, Tesla Is Selling $1.5 Billion in 8-Year Notes

Facing Cash Burn, Tesla Is Selling $1.5 Billion in 8-Year Notes

Facing Cash Burn, Tesla Is Selling $1.5 Billion in 8-Year Notes

According to EPA documents, discovered by Autoblog, Tesla will launch a Model 3 that comes with an 80.5kWh lithium ion battery that's claimed to be able to cover 500km between charges - around 150km more than the base model.

Tesla began delivering on a dream to make an electric auto for the masses, rolling out the first of its keenly-awaited "Model 3" cars, aiming to disrupt a world accustomed to automobiles powered by pollution-spewing fossil fuel. So, what exactly does that mean? This all seems like a lot of money, but Tesla plans to use the new funds to increase production capacity from 100,000 to 500,000 vehicles per year by the end of 2018. In fact, the carmaker announced that it received around 1,800 orders a day for that particular model, Reuters reported. The demand/supply gap is clearly in favour of Tesla. In the meantime, the Model 3 is supposed to be the first electric vehicle for the masses. Revenue more than doubled to $2.8 billion, also beating Wall Street's forecast of $2.5 billion. He added that safety was a primary concern when building the Model 3. Tesla referred to the arrival of the Model 3 as a "crucial step" in the company's mission to speed the transition to renewable energy. The biggest bearish check came earlier this year from Morgan Stanley's Adam Jonas, who had until then been a pretty reliable Tesla stock bull.

However, Musk assured investors that Tesla is on track to meet the increasing demand. With the Model 3, Tesla hopes to start cranking out hundreds of thousands of cars annually.

Although the company was still determining the interest rate, redemption price and other terms of the new bonds, it marks Tesla's second capital raise this year. Vetr upgraded shares of Tesla from a "strong sell" rating to a "sell" rating and set a $335.62 price target on the stock in a report on Tuesday, June 13th.

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Even if Tesla finds itself under "severe financial or operating stress", the company's "brand name, production facilities, and product lineup would have considerable value to another automotive OEM or technology firm targeting the electric vehicle and mobility markets". Savvy investors should see this as a sucker's bet.

WARNING: "Tesla Inc. (TSLA) Stock Rating Reaffirmed by Robert W. Baird" was first published by BBNS and is the property of of BBNS.

Welp, there is the drop in Tesla stock that Einhorn and his band of bears have been waiting for... Also, insider Jeffrey B. Straubel sold 109,100 shares of Tesla stock in a transaction dated Tuesday, May 9th.

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