Tesla To Raise Over $1.15 Billion To Help Offset Risk For Model 3 Production (techcrunch.com)

Tesla is looking to raise a total of around $1.15 billion from stock and convertible senior notes as a way to help "further reduce any risks" that it'll incur as it scales its business to handle its aggressive Model 3 production schedule, the company said. From a report: Tesla's decision to pad out its balance sheet with more capital was anticipated by many analysts, and a fair number of Wall Street watchers actually thought Tesla would seek more to help it grow based on recent comments made by Tesla CEO Elon Musk. The Model 3 is set to begin full production this year, with pre-production begun in February with a temporary production line pause to help get processes at its Fremont factory ready for the new vehicle. The split of the new funding efforts will see Tesla pursue $250 million in common stock offering, with $750 million raised via convertible notes due in 2022. Elon Musk himself will personally contribute by buying $25 million in Tesla stock.

Comments

Re:Teslas doesn't make cars, they make bullshit

[Anonymous Coward]

They couldn't do the model 3 because batteries were still too expensive. It was only possible now.... which is why they did it now.

When the batteries cost $45,000 you can't make a $35,000 car.

Re:Teslas doesn't make cars, they make bullshit

[Rei]

And so far, historically Tesla has missed their projected price by about $30K consistently.

(Citation Needed)

The Roadster was promised at $100k. This was based on Eberhard's budgeting, not Musk's. During the development, the board (including Musk) eventually came to realize the degree to which Eberhard had fudged the numbers and all of the problems he had gotten the company into (penalties for unmeetable contracts, a stupid choice of gearbox supplier, etc), and ultimately he was fired. Their estimate at the time was that the car would end up at over $120k. However, with a lot of good decisions, such as getting customer buy-in to (rather than starting over on the gearbox) switch it from a two-gear to a one-gear with a more powerful drivetrain to achieve the same accel, they brought the price down to $109k at release.

The Model S was initially promised at $57,4k for 40kWh, $67,4k for 60kWh, and $84,4k for 85kWh. The price today? $59,9k for 40kWh, $68k for for 60kWh, and $79,9k for 85kWh.

The Model X was the same story - came in right at around the price estimate.

Where you got this "Tesla has missed their projected price by about $30K consistently" is beyond me.

I'm going to guess that material prices will shoot through the roof

Wow, I'm sure Tesla totally didn't think about ensuring reliable supplies for their raw materials. I bet that totally never crossed their mind. Thank God we have Anonymous Coward here to point out their mistakes to them!