Tesla Bonds Raised To $1.8 Billion For Model 3 Production

Posted: Aug 12 2017, 2:04pm CDT | by , in News | Cars & Vehicles

 
Tesla Bonds Raised to $1.8 Billion for Model 3 Production
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Tesla Bonds reach Surplus of $1.8 Billion along with a Huge Fund for Model 3 Manufacturing

Tesla announced recently that it was raising $1.5 billion in funds to finance the production of the Model 3. As for the bonds, they were oversubscribed by $300 million. This automatically brought the total amount to $1.8 billion which is a whopping sum of cold hard cash.

Nobody ought to have any doubts regarding Tesla Motors or its CEO, Elon Musk’s ability to raise some hefty amounts of cash at a moment’s notice. In spite of the junk bonds that were a part of the deal, the yield was at 5.25% which is not bad.

Tesla Motors also took a Model 3 to, of all places, New York where it sold its novel bonds. Musk talked with investors during the conference call and he came up with a great deal of valuable information.

Tesla Motors also has full plans to spend $2 billion during the rest of 2017 to fuel production of the Model 3. Till the year 2025, the debt of the EV firm will also skyrocket substantially. Yet the production and incoming revenues that will be raked in will more than make up for this excess of expenditure.

Musk, who is in his middle years yet full of vim and verve, used his charm and charisma with the investors at the conference call recently. He definitely knows a thing or two about wheeling and dealing. Musk managed to take home $600 million in pre-orders from the conference call.

This is indeed a business miracle if ever there was one. Tesla is on cloud nine and it will make it into the future despite such competitors as Volkswagen entering the EV scene.

This is actually all just a play of capitalism which is taking place and while it may not benefit everyone equally, the trickle-down economics does take place nevertheless (and that in itself is a big consolation seeing that colossal amounts of money are involved in this great game).

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