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Tesla aiming to raise £1.2bn for mass market electric auto
13 Agosto 2017, 06:18 | Gervasio Siguenza
Tesla seeks $1.5 bn junk bond issue to fund Model 3 production
At Tesla's "Handover Party", the electric-car maker said the base Model 3 will still start at $35,000 and will offer an EPA-estimated 220-mile range.
Meanwhile, the company is burning cash at a rapid rate.
The Tesla Model 3 has officially begun rolling off the assembly line, but the vehicle will see a staggered launch.
Representatives for Heard and Musk have not returned requests for comment.
It would appear one of the people who received their Founders Series Model 3 is Jason Calacanis, the CEO of Inside.com and also one of the early Tesla investors. Up to this point, Tesla's business model has revolved around selling a relative handful of luxury vehicles.
At the launch, Musk, however, warned that Tesla would face months of "manufacturing hell" as it increases production of the sedan.
This is Tesla's first debt deal, which begs the question: Why use debt? "This is more in the double B range", he added, referring to a higher speculative debt rating.
Musk then allegedly told Brown to take two weeks off, during which time he would take over her responsibilities, then decide if she was worth the raise.
The billionaire coined that moniker for Tesla'sGigafactory 1 as he waxed poetic about his company's future on an August 7 call with would-be bond buyers. It's a tech company with industrial assets growing 50% to 100% per year. On the other hand, auto owners expecting shipment of their Model 3, S and X soon will already have the new supercomputing hardware suite and thus, no update will be required.
Last week's trip onto the earnings stage was no different for Tesla's CEO.
Nonetheless, should it successfully raise the $1.5bn, few analysts expect the proceeds to last beyond the third quarter of 2018.
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