Tesla Model 3: No Release Date Delay Expected, Assures Elon Musk

Tesla Model 3: No Release Date Delay Expected, Assures Elon Musk

Tesla Model 3: No Release Date Delay Expected, Assures Elon Musk

The underwriters increased the amount of equity and convertible notes to $1.2 billion.

"We would not be surprised to see the raise upsized as we expect the company could use the capital, especially as it enters full ramp of the Model 3", said Colin Rusch, an analyst at Oppenheimer & Co.

Gadfly's Liam Denning has a different take on Tesla's raise. The electric automaker and sustainable energy company ended up raising 20% more than it planned.

The other thing this major change will do is create separation in Tesla's lineup when the Model 3 arrives.

Tesla Inc said it expects to raise about $1.15 billion from a stock and senior notes offering, an infusion of needed capital as the electric vehicle maker enters pre-production of its upcoming Model 3 electric sedan. As such, the recent cash raise more than ensures Tesla can navigate throughout 2017 in its comfort zone. The CEO of Tesla has possibly come up with a procedure, which would smoothen the experience for potential customers. If you did, you would know that new models start out as "alpha" cars. After a mixed earnings report last month, Musk stated that it would be possible and would make sense to raise capital to reduce any future risks.

And now indeed it seems that logic might be coming to fruition, as Tesla has filed with the SEC (Security and Exchange Commision) on March 15 to sell almost 1 million shares worth at least $250 million and at least $750 million of convertible notes (options) due in 2022. According to TechTimes, Musk will be purchasing $25 million of the common stock offered. The auto will come, but it needs to be seen whether the quality of the vehicle is same as that of Model S and X or there is some difference. This week, the company said it would do so.

It seems Tesla will stick to that plan for these last Model S 60kWh vehicles to be sold, giving users the chance to "upgrade" to a 75kWh version down the road.

Tesla's bond offering of $850M consisted of 2.375% Convertible Senior Notes due March 15, 2022.

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