Tesla has announced that it’s going to sell $2 billion in stock so as to help fund the production of the Model 3. The company confirmed this in a regulatory filing that it intends to sell 6.8 million shares of the company in a secondary stock offering, over $200 a share is traded, meaning that it has a target of $1.4 billion. Tesla CEO Elon Musk will also be selling close to 2.8 million share, that’s about $600 million. This implies having a “good buffer of cash” to get things going smoothly.
Even before the Tesla Model 3 was unveiled, almost 100,000 people had already pre-ordered it. After that the company still received thousands of pre-orders for their latest electric car such that Tesla acknowledged that it underestimated Model 3 demand by a wide margin.
The Model 3 is expected to be available in late 2017, this additional funding will enable the company raise a ton of investment money which will help speed up production of the Model 3 and also help in the company’s goal of building 500,000 electric vehicles cars per year in 2018.
Tesla Motors, Inc. is an American automotive and energy storage company that designs, manufactures, and sells luxury electric cars, electric vehicle powertrain components, and battery products. Tesla Motors is a public company that trades on the NASDAQ stock exchange under the symbol TSLA. During the first quarter of 2013, Tesla posted profits for the first time in its history. Tesla manufactures equipment for home and office battery charging, and has installed a network of high-powered Superchargers across North America, Europe and Asia. The company also operates a Destination Charging program, under which shops, restaurants and other venues are offered fast chargers for their customers.