Tesla raising $2 billion to fund the Model 3

[Gilzo]

We knew this was coming. I personally thought it would be a little bit more, and it very well may be later on down the road, but it's a good start imo.
Thoughts?

Tesla is raising $2 billion to finance its ambitious Model 3 production program

 

[gregincal]

As you say, we knew this was coming. It seems reasonable.

 

[AEdennis]

Thanks for bringing this up...

Shouldn't the thread go to the Investor section though?

 

[Gilzo]

Thanks for bringing this up...

Shouldn't the thread go to the Investor section though?

Oh I don't know...maybe. But to me, if there's newsworthy content that involves the Model 3, it belongs right here.

 

[Steepler2k]

Both places seem like reasonable venues to discuss.

$2bn seems a touch on the low side given the aggressive schedule, but I'm in a completely different field.

 

[anticitizen13.7]

Both places seem like reasonable venues to discuss.

$2bn seems a touch on the low side given the aggressive schedule, but I'm in a completely different field.

I have read various reports that Tesla has been upgrading its production facilities for some time now in anticipation of Model 3 production. A new stamping press has 10-20x the capacity of the unit it replaced: Tesla plant-capacity increases point to Model 3 preparations. More robots are also mentioned.

There's also the new paint shop, which has been the recent subject of controversy over the wages and working conditions of sub-contractors. This paint shop is supposed to be able to handle painting up to 500,000 cars per year.

I am not in the manufacturing business, but I imagine that Tesla will spend that 1.4B raised (The total raise is 2B, but the net will be 1.4B with 0.6B used by Elon to pay federal/state taxes on exercised options) on: (1) Continuing Gigafactory construction to ensure battery supply (2) Building out the Model 3 assembly line (3) Final R&D on Model 3 design (4) Working with suppliers on component specifications and mass production (5) Expanding Service Centers to handle additional volume of cars.

 

[Jason Bourne]

What are people's guesses about how this new chunk of publicly available stock will affect TSLA share price? Maybe they would make a different class of stock, like Under Armour did recently (UA and UA.C)?

I wonder also if any of this additional capital would be used to build production capacity in China, since they are dying to get in there and have a physical production facility to avoid import taxes.

 

[dgindio]

Tesla files for $2B stock sale to back Model 3; shares plunge

 

[djplong]

Oh what a plunge - a whole one half of one percent as of a few seconds ago...

 

[Big-T]

What are people's guesses about how this new chunk of publicly available stock will affect TSLA share price? Maybe they would make a different class of stock, like Under Armour did recently (UA and UA.C)?

I wonder also if any of this additional capital would be used to build production capacity in China, since they are dying to get in there and have a physical production facility to avoid import taxes.

I'm wondering that too, I'm headed over to the investor threads to see if anyone's talking about it (I'm sure they are)

 

[ecarfan]

Already being discussed at Tesla raising $2 billion to fund the Model 3