Tesla Model Y May Outsell The Affordable Model 3
- Author: Patricia Jimenez Mar 16, 2017,
Mar 16, 2017, 0:20
The Silicon Valley company said Wednesday it is offering $250 million in common stock and $750 million in convertible notes due in 2022.
Tesla officials said the company plans to install six Tesla supercharger or fast-charging stations throughout the country, along with an additional 25 charging stations that will allow recharging at a normal rate.
Regarding the Model Y nomenclature, note that the entirety of Tesla's lineup was created to spell out "sexy" with the Models S, 3, X and Y. Famously, the Model 3 was previously called the Model E before Ford effectively forced them to change it.
This year will be another turning point for Tesla as it works to transition from a high-profile, niche carmaker into a vastly larger producer of vehicles, batteries and solar power systems.
"No capital needs to be raised for the Model 3, but we get very close to the edge", Musk said.
Tesla has announced that they will be raising $1.15B in a stock offering, as the company prepares for Model 3 production and general business operations. As avid Tesla followers might now, Jack Northrop Avenue is also where the Model 3 did its test rides when it was first unveiled past year, 2016.
The less robust the cash flow, the more likely that a publicly traded company-in this case, Tesla-will need to raise more shares. Musk has also been dropping hints about the new electric vehicle model. "This likelihood of a substantial cushion, which given our price target, we have to admit would be at a non-dilutive price, is likely to support the stock for the short term... and indeed, Tesla stock has frequently outperformed post offerings".
"According to our financial plan, no capital has to be raised for the Model 3", he said.
One of the Tesla was a base model auto, which had no options like a motorized sunroof, sound system, and high output charger, making the vehicle lighter due to less weight.