Published: Tue, August 08, 2017
Tech | By Constance Martin

Tesla plans to raise $1.5B in bonds to fund Model 3

Tesla plans to raise $1.5B in bonds to fund Model 3

When Musk was asked last week if he would like to raise more cash as a buffer, he said the company was considering a debt offering but not an offering of stocks.

The company has said it expects capital expenditures of $2 billion in the second half of this year to boost production at its Fremont, California assembly plant and a battery plant in Reno, Nevada.

"We expect to keep the majority of our production in the USA, but it's, obviously, going to make sense to establish a Gigafactory in China and Europe to serve the markets there", Musk said.

A report published by Bloomberg Intelligence in June said that factories planned by Chinese companies could have the capacity to produce more than 120 gigawatts an hour by 2021 - enough to supply 1.5 million Tesla Model S vehicles.

It's unclear whether those problems are related to the departure of Kurt Kelty, senior director of battery technology at Tesla.

This victory is in large part symbolic, because to break the record at this point it's necessary to drive in a way you'd never want to duplicate in real life.

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She refused to recognise her sacking, or the assembly's swearing in of Tarek William Saab, the national ombudsman, in her place. Socialist party loyalists also regularly use the term "terrorist" to describe opposition leaders and protesters.

Kelty could not be reached for comment. Catawba Capital Management VA now owns 2,770 shares of the electric vehicle producer's stock worth $771,000 after buying an additional 110 shares during the last quarter. Hundreds or thousands of them are clustered and packed together to power modern electric vehicles. Tesla owner Elon Must was among the first to congratulate the Italian Tesla owners club. Tesla is locked in to a take-or-pay contract with Panasonic, which Kelty negotiated. That means he may be nervous about the robustness of current prices in the face of dilution. Tesla founder and CEO Elon Musk saluted the drivers in a tweet on Saturday, stating that the record had been "officially verified".

Tesla has dropped the starting price of the Model X by $3,000, citing increased margins for the all-electric SUV.

Tesla's bond will price later this week after several days of meetings with credit investors, who will weigh factors including the absence of a borrowing history, its lack of profit and its high cash-burn rate against its growth potential and its attractiveness as an environmentally-friendly "green" issuer. Tesla shares last traded at $351.22, with a volume of 5,178,276 shares.

© 2017 Los Angeles Times under contract with NewsEdge/Acquire Media.

Swedish auto maker Volvo has revealed it will adopt an electrification strategy for all new models from 2019. No worries. There are plenty of vehicle safety features that are available, affordably, for ALL cars, not just new ones.

But before you go out to try this in your own Model S, you should be aware of the hard conditions under which this trip was made.

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