Tesla seeks to raise about $1.5 billion in a bond offering for production of its newest sedan, the Model 3. Fred Katayama reports.
Tesla plans to raise about $1.5 billion in a bond offering for production of its newest sedan, the Model 3. IFR's Will Caiger-Smith says, with the bond offering, Tesla is accessing a huge pot of cash. (SOUNDBITE) WILL CAIGER-SMITH, SENIOR REPORTER, INTERNATIONAL FINANCING REVIEW (ENGLISH) SAYING: "Bond investors are always looking for new names to add to their portfolio because there are so few bonds to go around for the amount of demand there is. So, this deal is certain to get huge amount of interest, whether people like it or not , whether they want to be involved with the company at this stage in its growth, they'll all be looking at this deal and considering whether they want to be a part of it" Before the bond sale, Tesla raised about $1.4 billion through a stock and debt offering in March. In June, it expanded credit agreements by a combined $800 million. Pre-orders for the Model 3 have surpassed half a million, averaging about 1,800 per day since its launch last month. With a $35,000 base price, it is Tesla's cheapest vehicle. It's designed to help the company enter mass market. Tesla plans to make 500,000 Model 3s in 2018 and a million in 2020. Those estimates sent Tesla's stock up 67 percent this year.