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Tesla to raise $1 billion, will fund Model 3 launch

Tesla ramps up to its Model 3 launch, wants to raise another $1 billion
By: Anthony Garreffa | Business, Financial & Legal News | Posted: Mar 16, 2017 4:54 am

Tesla Motors is looking to raise just over $1 billion, something the electric car maker will do soon as it ramps up towards the launch of its upcoming Model 3 electric vehicle - its new car priced at around $35,000.

 

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The upcoming $1 billion injection will come from $250 million in secondary stock offerings, with another $750 million in convertible senior notes (as The Verge points out, it's "basically a loan"). There'll also be options for the underwriters to secure another 15% for each offering, while Tesla CEO and real life Tony Stark, Elon Musk, will buy $25 million in Tesla common stock as part of the deal.

 

Tesla will launch its new Model 3 electric car in 2018, starting from $35,000.

NEWS SOURCES:Theverge.com

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