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Tesla raising $2 billion to fund the Model 3

Discussion in 'Model 3' started by Gilzo, May 18, 2016.

  1. Gilzo

    Gilzo Member

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    • Informative x 1
  2. gregincal

    gregincal Active Member

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

    AEdennis Active Member

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  4. Gilzo

    Gilzo Member

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    Oh I don't know...maybe. But to me, if there's newsworthy content that involves the Model 3, it belongs right here.
     
  5. Steepler2k

    Steepler2k Member

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    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.
     
  6. anticitizen13.7

    anticitizen13.7 Enemy of the Status Quo

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    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.
     
  7. Jason Bourne

    Jason Bourne Member

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    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.
     
  8. djplong

    djplong Member

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

    Big-T Member

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    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)
     
  10. ecarfan

    ecarfan Well-Known Member

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