Tesla seeks extra $1.5bn

Tesla intends to raise about $1.5bn in a bond offering to ramp up production of the Model 3.

It has received an average of 1,800 advance reservations per day for the Model 3, since the car’s launch in late July. The Model 3 is intended to be the company’s first mass-market electric car, with a price base of $35,000.

However, at the launch event, founder Elon Musk said the company would face ‘at least six months of manufacturing hell’.

A statement said, ‘Tesla today announced that it intends to offer, subject to market and other conditions, $1.5bn in aggregate principal amount of its senior notes due 2025. The Notes will be senior unsecured debt obligations of Tesla. The interest rate, redemption prices and other terms of the Notes are to be determined. Tesla intends to use the net proceeds from this offering to further strengthen its balance sheet during this period of rapid scaling with the launch of Model 3, and for general corporate purposes.’

Meanwhile, in Italy, a team of Tesla owners set a new record driving distance of single charge when they managed to drive a Model S for 670 miles. The team fitted low-resistance tyres and drove with the air conditioning off, using autopilot to keep the car at a steady speed.