We’ve been hearing a lot about the Tesla Model 3 launch for quite some time now. From 200,000 pre-orders in the first thirty-six hours of the announcement to its $35,000 price tag, the Tesla Model 3 is already exceeding expectations. In anticipation of the launch, Tesla has set out to raise the funds it will need ahead of time.
They plan to raise $1.15 billion, which would be the culmination of $250 million in common stock and $750 million in convertible senior notes, available from their 968,993 available shares. Elon Musk actually plans on buying 96,900 shares himself, valued at $25 million according to the public offering price. Tesla wants to use the proceeds to strengthen the company’s financial situation overall, and reduce risk in the Model 3’s production.
Goldman, Sachs & Co., Citigroup, Morgan Stanley, and Deutsche Bank Securities are currently leading the stock offering. With such big name investors, Musk is confident that not only is Tesla leading the Model 3 launch with initial capital raised for production, but that production and launch will likely be carried off with less risk.
Tesla prototypes have already been cruising through the streets of California since February 25 — the $35,000 sedan is being tested ahead of its launch later this year. The all-electric vehicle has a 215-mile range per charge and a 0 to 60 time of six seconds. As for autonomous driving, the Model 3 will have Tesla autopilot 2.0, inching Tesla closer to its goal of full autonomy by the end of 2018.
All eyes are currently on Tesla as they unveil the next generation of vehicles that marries energy and efficiency for everyone. And with full autonomy on the horizon, you might soon be able to set your destination — and take a quick nap.