Tesla wants to raise up to $ 1.15 billion on the sidelines of the Model 3 launch
- Tesla plans to issue a convertible loan of $ 750 million, due in 2022.
- The American firm is also preparing to issue a total of $ 250 million in new shares.
- Elon Musk has announced his intention to participate in this round table by injecting $ 25 million out of his pocket.
- Tesla conceded $ 675 million in losses in 2016.
- Production of the Model 3 is due to start in mid-2017 with first deliveries scheduled for mid-2018 at the earliest.
You’re here heals its cash flow as the launch of its Model 3 consumer electric car looms on the horizon. The American manufacturer has announced that it wants to raise up to $ 1.15 billion on the financial markets. In total, the company has raised around $ 3.5 billion since its inception.
To carry out this operation, Tesla plans to make a convertible loan of 750 million dollars, the maturity of which is set for 2022. At the same time, the American firm is preparing to issue a total of 250 million dollars in new shares. For this, Tesla will sell nearly 970,000 shares, at a price of $ 258 per unit. Among these additional actions, Elon Musk, the boss of Tesla, has announced his intention to participate in this fundraising round by injecting $ 25 million from his pocket to get his hands on 96,900 shares.
The total amount of the transaction could reach $ 1.15 billion as long as interested buyers have a “option valid for 30 days to buy up to 15% more of each offer», Specifies the company.
675 million losses in 2016
This new funding should allow Tesla to “strengthen its balance sheet and further reduce the risks associated with the rapid scale-up of the business due to the launch of the Model“. Indeed, the American manufacturer is seeking to shelter financially after conceding $ 675 million in losses in 2016.
In addition, the firm headed by Elon Musk announced last year its intention to speed up the production rate of the “Model 3”. With this in mind, Tesla had put up for sale 6.8 million shares in May 2016 to raise 1.4 billion dollars. Production of Tesla’s new sedan is due to start in mid-2017. As for the first deliveries, they should take place in mid-2018 at the earliest. In 2016, Tesla said it wanted to reach 500,000 vehicles built each year from 2018, all models combined.