Detroit Bureau on Twitter

Posts Tagged ‘tesla cash’

Pressed for Cash, Tesla Issues Junk Bond in Bid to Boost Model 3 Production

Automaker lowers price of Model X SUV to reflect “efficiencies.”

by on Aug.07, 2017

The first "saleable" Model 3 shown after rolling off the line at the Fremont plant last month.

Aiming for a massive increase in production to meet strong demand for its new Model 3 battery-electric vehicle, Tesla is issuing $1.5 billion in high-yield junk bonds.

The announced comes less than a week after Tesla said it had narrowed its losses for the second quarter. During a conference call to discuss the earnings report, CEO Elon Musk indicated the automaker might need a new cash infusion but would try to avoid issuing new stock.

Breaking News!

The new debt offering is meant “to further strengthen its balance sheet during this period of rapid scaling with the launch of Model 3, and for general corporate purposes.”

(more…)