Tesla is raising $1.5B to ramp up Model 3 production

Tesla Lowers Starting Price of Model X

The news came yesterday from a Tesla Motors Club forum post by user StopCrazyPP, who snapped an image of the Model 3's window sticker lying in the front trunk of a vehicle about to be delivered.

Tesla Says Model 3 Deliveries To Hit 10000/week.

"It's not like we're getting 10 percent to fund a negative-cash-flow company", he told Bloomberg.

The auto has also removed the need for physical keys, with the Model 3 syncing to a phone through a bluetooth connection, which will automatically unlock the vehicle when the driver is near. The electric auto marker's cash burn, or negative free cash flow, came to $1.2 billion in the second quarter - almost double the $622 million spent in the previous quarter.

Tesla, Inc, formerly Tesla Motors, Inc, designs, develops, manufactures and sells fully electric vehicles, and energy storage systems, as well as installs, operates and maintains solar and energy storage products. The company now plans to increase its output to 5,000 Model 3 cars a week by the end of 2017. Elon previously said he estimated the average selling price of a Model 3 to be $42,000. In order to pace out the amount of charge in the car's battery, which is typically good for 335 miles per charge, the vehicle in question was likely driven for a span of 29 hours at around 23 mph, according to analysis by Electrek. "Obviously, that's like the promised land right there".

In March, the company raised about $1.4 billion through a stock and debt offering. The Notes will be senior unsecured debt obligations of Tesla. "Tesla's a company that's always on to the next big innovation or the next big advancement and they raise money well in advance of when the public finds out about that".

Analysts already are speculating whether Tesla will need to raise more cash before the year is over.

Tesla had US$3b in cash on hand at the end of the second quarter, but said it expects to spend US$2b in the second half of this year. This is key to the company's short-term customer relations and long-term survival, as the Model 3 is now amassing some 1,800 reservations per day. He added that safety was a primary concern when building the Model 3. After that comes the Model Y, a smaller crossover scheduled to arrive as soon as late 2019.

Solar power and battery storage now make up a small percentage of Tesla revenue, but it has high hopes for both.

Tesla is slowly beginning to face stiff competition from other countries as the world races toward lithium ion battery mass production.

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